What is a Living Trust in California? (Simple Explanation)

Everything you need to know about living trusts in plain English

By Rozsa Gyene, estate planning Attorney | State Bar #208356

What is a Living Trust California? — Detailed Explanation

A living trust (also called a "revocable living trust") is a legal arrangement where you transfer ownership of your assets to a trust that you control. Think of it like a box that holds all your valuable possessions:

• You create the box (the trust document)
• You put your stuff in the box (transfer assets to the trust)
• You keep the key (you're the trustee, so you control everything)
• You write instructions on the box (who gets what when you die)
• When you die, your successor opens the box and gives everything to your beneficiaries (no court needed)

The key benefit: Assets in a trust don't go through probate. They transfer directly to your beneficiaries according to your instructions.

What Does a Living Trust Do California?

A California living trust does three important things:

1. Avoids Probate (Saves $27,000-$68,000+)

When you die with just a will, your estate must go through probate court. California probate costs 4-7% of your estate value and takes 12-18 months. For a typical $700,000 California home, probate costs your family $38,000-$68,000.

A living trust bypasses probate entirely. Assets transfer to your beneficiaries in 2-4 weeks with no court involvement and no probate fees.

2. Protects You if You Become Incapacitated

If you become unable to manage your affairs (dementia, stroke, serious illness), your successor trustee can immediately step in and manage your assets without court intervention.

Without a trust, your family would need to go to court to get a conservatorship, which costs $5,000-$10,000 and takes months.

3. Keeps Your Estate Private

Probate is public record. Anyone can look up what you owned and who inherited it. A living trust remains private — nobody's business except your family.

How Does a Living Trust Work California?

Here's how a living trust works step-by-step:

Step 1: You Create the Trust

You create a trust document that specifies:

• Who you are (the "grantor" or "settlor")
• Who manages the trust (you're the "trustee" during your lifetime)
• Who takes over when you die or become incapacitated (your "successor trustee")
• Who gets your assets when you die (your "beneficiaries")
• Any special instructions (age-based distributions, special needs provisions, etc.)

Step 2: You Transfer Assets to the Trust

You retitle your assets in the name of the trust:

• Real estate: Record a deed transferring your home from "John Smith" to "John Smith, Trustee of the John Smith Living Trust"
• Bank accounts: Retitle accounts in the trust's name
• Investment accounts: Transfer to the trust

Step 3: You Live Your Life Normally

Nothing changes in your daily life. You still:

• Live in your home (it's still yours, just titled differently)
• Access your bank accounts
• Buy, sell, and manage property
• Do everything you did before

The trust is "revocable," meaning you can change it or cancel it anytime.

Step 4: When You Die, Assets Transfer Automatically

When you die:

• Your successor trustee takes over
• They follow your instructions in the trust
• Assets transfer directly to beneficiaries
• No probate court
• No probate fees
• Process takes 2-4 weeks instead of 12-18 months

Living Trust vs Will California — What's the Difference?

The main difference: A will goes through probate. A living trust does not.

• Will: Takes effect when you die. Goes through probate court (12-18 months, $27K-$68K+ fees). Public record.
• Living Trust: Takes effect immediately. Avoids probate (2-4 weeks, minimal fees). Private.

Note: You should have both. Create a living trust for your main assets, plus a "pour-over will" to catch anything you forgot to put in the trust.

Who Needs a Living Trust in California?

You need a living trust if you:

• Own a home in California (most important)
• Have assets over $208,000
• Want to avoid $27,000-$68,000+ in probate costs
• Want your family to inherit quickly (weeks not months)
• Value privacy (avoid public probate records)
• Have minor children (control when they inherit)
• Want incapacity protection

If you own a California home, you almost certainly need a living trust.

How to Get a Living Trust in California

You have three options:

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

• Complete questionnaire online (30 minutes)
• Attorney prepares and reviews documents
• Cost: $150-$400
• Time: 24-48 hours
• Create Your Trust Online →

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

• In-person consultation
• Fully customized
• Cost: $1,500-$5,000
• Time: 2-4 weeks

Option 3: DIY Templates ($0-$50) — Not Recommended

• No attorney oversight
• Risky for California homeowners
• May not comply with California law

Key Takeaways: What is a Living Trust California

• A living trust is a legal document that holds your assets and transfers them to beneficiaries when you die
• Main benefit: Avoids probate (saves $27,000-$68,000+ and 12-18 months)
• You maintain complete control during your lifetime
• Assets transfer quickly and privately (2-4 weeks, no court)
• California homeowners should have one
• Cost: $150-$3,000 depending on how you create it

Frequently Asked Questions

What exactly is a living trust in California?

A living trust is a legal document that holds ownership of your assets (home, bank accounts, investments) during your lifetime and automatically transfers them to your beneficiaries when you die without going through probate court. You maintain complete control as the trustee while alive, and your successor trustee distributes assets according to your instructions when you die. The key benefit is avoiding California's expensive and time-consuming probate process.

How does a living trust avoid probate in California?

When you transfer assets into a living trust, they are no longer in your individual name — they're owned by the trust. Since probate only applies to assets owned in your name at death, trust assets bypass probate entirely. Your successor trustee can immediately distribute them to beneficiaries according to your trust instructions, taking 2-4 weeks instead of 12-18 months and saving $27,000-$68,000+ in probate costs.

What is the difference between a living trust and a will in California?

A will takes effect only when you die and must go through probate court (12-18 months, $27,000-$68,000+ in fees, public record). A living trust takes effect immediately when you create it, avoids probate court (2-4 weeks, minimal fees, private), and also protects you if you become incapacitated. You should have both — a living trust for your main assets plus a pour-over will to catch anything you forgot to put in the trust.

Who needs a living trust in California?

You need a living trust if you own a home in California, have assets over $208,000, want to avoid $27,000-$68,000+ in probate costs, want your family to inherit quickly (weeks not months), value privacy, have minor children, or want incapacity protection. California homeowners almost always benefit from a living trust due to high real estate values and California's expensive probate fees.

How much does it cost to create a living trust in California?

Cost varies by method: Online services with attorney review cost $150-$400 and take 24-48 hours. Traditional attorneys charge $1,500-$5,000 and take 2-4 weeks. DIY templates cost $0-$50 but are risky for California homeowners and may not comply with current California law. For most California families, online services with attorney review offer the best value — professional quality at 80% savings.

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About: Rozsa Gyene, California Estate Planning Attorney, State Bar #208356, 25+ years experience.

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