Estate Planning After 65 in California: It's Not Too Late

Protect your assets, avoid probate, plan for incapacity

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

Living Trust for Seniors California — Key Benefits

1. Incapacity Protection (Most Important for Seniors)

Incapacity risk increases with age:

• Age 65-74: 5% have dementia
• Age 75-84: 13% have dementia
• Age 85+: 34% have dementia

With living trust: Your successor trustee immediately manages your financial affairs. No court. No delays.

Without living trust: Family must go to court for conservatorship ($5,000-$10,000, takes 2-4 months).

2. Avoid Probate (Save $38,000-$68,000+)

California probate costs 4-7% of estate value. For typical senior homeowner:

Home Value	Probate Cost	Time
$500,000	$27,000-$48,000	12-18 months
$700,000	$38,000-$68,000	12-18 months
$1,000,000	$54,000-$96,000	12-18 months

Living trust avoids probate entirely. Assets transfer in 2-4 weeks, $0 probate fees.

3. Proposition 13 Property Tax Protection

Critical for California senior homeowners:

• You bought home years ago at low price
• Prop 13 keeps property taxes low (increases capped at 2%/year)
• Your home may be worth 10x what you paid
• When you die, can pass to children with Prop 13 protection (up to $1M primary residence)

Living trust preserves Prop 13 protection for your children. They inherit with your low property tax base (saves $10,000-$20,000/year).

4. Medi-Cal Planning (Long-Term Care)

Important for seniors 75+:

• Living trust does NOT affect Medi-Cal eligibility
• Trust assets count for Medi-Cal (but so do non-trust assets)
• Proper planning: Transfer some assets to irrevocable trust 30 months before Medi-Cal application

Estate Planning Seniors California — What to Include

Complete Senior Estate Plan Includes:

1. Revocable living trust (avoids probate, manages assets if incapacitated)
2. Pour-over will (backup for forgotten assets)
3. Durable power of attorney (financial decisions if incapacitated)
4. Advance healthcare directive (medical decisions, end-of-life wishes)
5. HIPAA authorization (family can access medical records)
6. POLST form (if seriously ill - specific medical orders)

Living Trust California provides all documents for $150.

Retirement Living Trust California — Special Considerations

Managing Retirement Accounts

DO NOT transfer retirement accounts to living trust:

• IRA, 401(k), 403(b) should NOT go in trust (triggers taxes)
• Instead: Name beneficiaries directly on retirement accounts
• Can name trust as beneficiary if you want control over distributions

Social Security and Pensions

• Social Security cannot be transferred to trust (ends when you die)
• Pensions: Check with plan administrator (some allow trust as beneficiary)

Medicare vs Medi-Cal

Medicare (age 65+): Living trust has NO effect on Medicare eligibility. Medicare doesn't consider assets.

Medi-Cal (low-income seniors): Trust assets count toward $2,000 individual / $3,000 couple asset limit for long-term care coverage.

Common Questions: Senior Living Trust California

Am I too old to get a living trust?

No. As long as you're mentally competent, you can create a living trust at any age:

• Age 65-75: Standard planning
• Age 75-85: Add incapacity protections
• Age 85+: Even more important (higher incapacity risk)

What if I already have dementia?

Depends on severity:

• Early stages: May still have legal capacity (attorney will assess)
• Advanced stages: Likely too late (family needs conservatorship)
• Don't wait. Create trust while you're healthy.

Should I put my home in trust if I'm in assisted living?

Yes. Even if you're in assisted living:

• Home can be sold to pay for care (easier if in trust)
• Avoids probate when you die
• Passes to children with Prop 13 protection

What about my reverse mortgage?

Transfer home to trust BEFORE getting reverse mortgage. Once home is in trust, you can get reverse mortgage. Trust doesn't affect reverse mortgage.

Cost: Senior Living Trust California

Option	Cost	Best For
Living Trust California	$150	Most seniors (standard estates)
Traditional attorney	$1,500-$3,000	Very complex estates only
LegalZoom	$279-$478	Generic templates, not recommended

Key Takeaways: Senior Living Trust California

• Seniors 65+ NEED living trust — incapacity risk increases with age
• Avoids conservatorship — save family $5,000-$10,000 if you become unable to manage affairs
• Avoids probate — save $38,000-$68,000+ when you die
• Protects Prop 13 for children — they inherit with low property tax base
• Medi-Cal compatible — trust doesn't affect eligibility
• Complete estate plan essential — trust + POAs + healthcare directive
• Don't wait — create trust while mentally competent
• Cost: $150 for attorney-reviewed trust vs $1,500-$3,000 traditional attorney

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About: Rozsa Gyene, California Estate Planning Attorney, State Bar #208356, 25+ years helping California seniors protect assets and families.

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