Quick Answer: What is a Living Trust?
A living trust is a legal document that holds your assets (home, accounts, property) during your lifetime and automatically transfers them to your beneficiaries when you die — without going through probate court. You maintain complete control while alive. When you die, assets transfer directly to your family in weeks instead of months, and save them $27,000-$68,000+ in probate costs.
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
Real Example: How a Living Trust Works
Sarah Martinez, 65, widowed, has:
- Home in Pasadena worth $750,000
- Bank account: $50,000
- Investment account: $100,000
- Two adult children as beneficiaries
Sarah creates a living trust:
- Names herself as trustee (she controls everything)
- Names her daughter Maria as successor trustee
- Specifies her two children split everything 50/50
- Transfers her home, accounts to the trust
While Sarah is alive: Nothing changes. She lives in her home, uses her accounts, has complete control.
When Sarah dies: Maria (successor trustee) transfers the home and accounts to Sarah's two children per the trust instructions. Process takes 3 weeks. No probate. No $38,000+ in probate fees. Private.
If Sarah had only a will: Estate would go through probate, cost $38,000-$68,000, take 12-18 months, be public record.
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 $184,500
- 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
Ready to Create Your Living Trust?
Create your California living trust online in 30 minutes. Attorney-prepared and reviewed. Starting at $150.
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About: Rozsa Gyene, California Estate Planning Attorney, State Bar #208356, 25+ years experience.