California Living Trust Requirements — Complete Checklist (2025)

Everything you need to create a legally valid California living trust

By Rozsa Gyene, Estate Planning Attorney | State Bar #208356

California Living Trust Requirements — What Does California Law Require?

California Probate Code sections 15200-15211 specify what's required for a valid living trust. Here's what you need:

Requirement #1: Trust Must Be in Writing

California Probate Code §15200: A trust must be evidenced by a written instrument.

What this means:

• ✓ Typed trust document (most common)
• ✓ Handwritten trust (valid but risky)
• ✗ Oral trusts (NOT valid for most assets)
• ✗ Video trusts (NOT recognized in California)

Practical application: Use a professional trust service (online or attorney) to ensure proper formatting and legal language.

Requirement #2: Must Be Signed by Grantor

California Probate Code §15200: The trust instrument must be signed by the settlor/grantor (you).

Signing requirements:

Requirement	Details
Who signs	You (the person creating the trust)
Name to use	Exact legal name (as shown on government ID)
When to sign	In front of notary (or 2 witnesses)
Married couples	Both spouses must sign (for joint trust)
Capacity required	Must be 18+ and mentally competent

Requirement #3: Must Be Notarized (or Witnessed)

California requirement: Trust signature must be notarized OR witnessed by two disinterested witnesses.

Notarization (recommended):

• Sign in front of California notary public
• Bring valid government-issued photo ID
• Notary completes acknowledgment certificate
• Cost: $15 per signature (California law maximum)

Witness alternative (not recommended):

• Two witnesses must watch you sign
• Witnesses cannot be beneficiaries
• Witnesses must be adults (18+)
• Risky: witnesses may be unavailable later to testify

Requirement #4: Must Designate Trustee

Every trust must have a trustee who manages the trust assets.

For revocable living trusts:

Role	Who	When They Serve
Initial Trustee	You (and spouse for joint trust)	During your lifetime
Successor Trustee	Person you name (adult child, sibling, friend)	After you die or become incapacitated
Backup Successor	Alternate if first choice can't serve	If successor is unable/unwilling

Choosing a successor trustee:

• Must be 18+ and competent
• Should be trustworthy and organized
• Doesn't need to be a beneficiary
• Can be professional (attorney, trust company) if no family available
• Should live in California (not required but practical)

Requirement #5: Must Identify Beneficiaries

Your trust must clearly identify who inherits your assets when you die.

Beneficiary information required:

• Full legal name (first, middle, last)
• Relationship to you (son, daughter, spouse, friend, charity)
• Percentage or specific assets each beneficiary receives
• Contingent beneficiaries (who gets assets if primary beneficiary dies before you)

Common beneficiary designations:

Scenario	How to Designate
Split equally among children	"Divide equally among my children"
Specific percentages	"40% to Sarah, 30% to John, 30% to Maria"
Specific assets	"My home to Sarah, my investment accounts to John"
Charity	"American Red Cross, Tax ID 53-0196605"
Minor children	"Hold in trust until age 25"

Requirement #6: California-Specific Provisions

This is where most generic trusts fail. California law requires specific provisions that 50-state templates often omit.

Required California provisions:

Community Property Provisions (Married Couples)

California is a community property state. Your trust must clearly identify:

• What's community property (acquired during marriage)
• What's separate property (owned before marriage or inherited/gifted)
• What happens to community property when first spouse dies
• Survivor's rights to community property

Proposition 13 Property Tax Protection

To avoid property tax reassessment when transferring California real estate:

• Trust must include parent-child transfer exemption language
• Must specify Prop 19 compliance (for transfers after Feb 16, 2021)
• Preserves low property tax base for principal residence ($1M exemption)

California Statutory Powers

California Probate Code §16200-16249 specify trustee powers. Your trust should reference:

• Power to buy/sell real estate
• Power to invest trust assets
• Power to operate businesses
• Power to make distributions
• Power to hire professionals

Requirement #7: Asset Transfer (Trust Funding)

Critical requirement: A trust is only effective if you transfer assets to it. This is called "funding the trust."

What assets to transfer to your California living trust:

Asset Type	Transfer to Trust?	How to Transfer
Primary residence	✓ YES	Record deed with county recorder
Rental property	✓ YES	Record deed with county recorder
Bank accounts	✓ YES (if over $184,500)	Retitle with bank
Investment accounts	✓ YES	Transfer through brokerage
Business interests	✓ YES	Assignment document
Vehicles	⚠ OPTIONAL	DMV transfer (usually not worth it)
Retirement accounts	✗ NO	Use beneficiary designation
Life insurance	✗ NO	Use beneficiary designation
HSA/FSA	✗ NO	Use beneficiary designation

How to transfer real estate to your trust (most important):

1. Prepare a deed (grant deed or quitclaim deed) transferring property from you to yourself as trustee
2. Sign deed in front of notary
3. Record deed with county recorder (costs $0-$75 recording fee)
4. Keep recorded deed with trust documents

Example deed language:

"John Smith and Mary Smith, husband and wife, hereby grant to John Smith and Mary Smith, as Trustees of the Smith Family Trust dated January 15, 2025..."

Additional California Trust Requirements to Know

Age and Capacity Requirements

• Must be 18+ to create a trust
• Must have mental capacity (understand what you're doing)
• Cannot be under undue influence or duress

No Witnesses Needed (But Recommended)

Unlike wills, California trusts don't require witnesses if notarized. However, consider having witnesses for added protection against challenges.

No Filing Required

You do NOT file your living trust with any government agency. Keep it private and safe. The only exception: record the deed if transferring real estate.

No Registration Requirement

California does NOT have trust registration. Your trust remains private during your lifetime.

Amendment and Revocation Rights

Your trust must state whether it's revocable or irrevocable. Most living trusts are revocable, meaning you can:

• Change beneficiaries anytime
• Modify distributions
• Add or remove assets
• Completely cancel the trust

California Living Trust Requirements Checklist — Step by Step

Common Mistakes with California Trust Requirements

Mistake #1: Using Generic 50-State Templates

Problem: National services (LegalZoom, Trust & Will, Rocket Lawyer) use generic templates without California-specific provisions.

Solution: Use California-specific service like Living Trust California or hire local attorney.

Mistake #2: Not Getting Notarization

Problem: Using witnesses instead of notary makes it hard to record deeds and transfer assets.

Solution: Always get your trust notarized, even though witnesses are technically allowed.

Mistake #3: Creating Trust But Not Funding It

Problem: Most common mistake. People create a trust but never transfer their home to it.

Solution: Prepare and record deed transferring real estate to trust within 30 days of signing trust.

Mistake #4: Incomplete Beneficiary Information

Problem: "My children" is vague if you have stepchildren, adopted children, or future children.

Solution: Use full legal names and specify relationships clearly.

Mistake #5: No Backup Successor Trustee

Problem: If your successor trustee dies or can't serve, trust may fail.

Solution: Always name at least one backup successor trustee.

Mistake #6: Putting Retirement Accounts in Trust

Problem: Transferring IRA/401k to trust triggers immediate taxation.

Solution: NEVER transfer retirement accounts to trust. Use beneficiary designation instead.

California vs Other States — Trust Requirements Comparison

Requirement	California	Most Other States
Written document	Required	Required
Notarization	Required (or 2 witnesses)	Varies
Community property	Required if married	N/A (most states aren't community property)
Prop 13 protection	California only	N/A
Trust registration	Not required	Not required (except Alaska, Delaware in some cases)

How to Meet California Living Trust Requirements

You have three options:

Option 1: Online with Attorney Review ($150) — Best Value

Option 2: Traditional Attorney ($1,500-$3,000)

• In-person consultation
• Fully customized
• Meets all California requirements
• 10-20x more expensive than online with attorney review

Option 3: Software-Only Services (Not Recommended)

• LegalZoom ($279 + $199): Generic templates, attorney review costs extra
• Trust & Will ($499-$599): NO attorney review, risky for CA homeowners
• Rocket Lawyer ($240/year): Generic templates, subscription required

Key Takeaways: California Living Trust Requirements

• 8 core requirements: Written document, signed, notarized, trustee, successor trustee, beneficiaries, CA provisions, funded
• Notarization strongly recommended even though witnesses are allowed
• California-specific provisions are critical (community property, Prop 13)
• Trust funding is essential — must transfer assets to trust
• Real estate transfers require recorded deeds
• Generic 50-state templates miss CA requirements
• Attorney review ensures compliance with all California trust laws
• No filing or registration required in California

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About: Rozsa Gyene, California Estate Planning Attorney, State Bar #208356, 25+ years experience. Expert in California living trust requirements and Probate Code compliance.

© 2025 Living Trust California. Rozsa Gyene, Attorney at Law, State Bar #208356.