Living Trust VS Will California

Quick Answer: Which Do You Need?

Choose a Living Trust if: You own California real estate OR have assets over $184,500 OR own a business. Cost: $400-$500. Avoids probate completely.

Choose a Will if: You have modest assets (under $184,500), no real estate, and want basic protection at lower cost. Cost: $150-$250. Requires probate but adequate for simple estates.

1. Probate Avoidance - The #1 Reason for a Trust

Living Trust: Completely avoids California probate. When you die, your successor trustee distributes assets immediately according to your instructions. No court, no delays, no public filing.

Will: MUST go through probate court. California probate takes 18-24 months minimum and costs 4-6% of your gross estate ($27,000 on a $500K estate, $47,500 on $1M). Every will in California goes through probate.

Winner: Living Trust saves $27,000-$68,000+ and 18-24 months.

2. Cost - Upfront vs Long-Term

Living Trust: $400-$500 to create. Zero probate costs later. Total lifetime cost: $400-$500.

Will: $150-$250 to create. Then $27,000-$68,000+ in probate costs when you die. Total cost: $27,150-$68,250+.

Winner: Living Trust saves $26,000-$68,000+ long-term. See complete cost breakdown →

3. Privacy - Public vs Private

Living Trust: Completely private. Nobody knows what you owned, who inherited, or how much they received. No public filing.

Will: Becomes public record during probate. Anyone can read your will at the courthouse, see all your assets, and know who got what. This invites scammers, predators, and family disputes.

Winner: Living Trust protects privacy.

4. Real Estate - Critical in California

Living Trust: Real estate transfers to beneficiaries immediately, no probate required. Works for primary residence, rentals, vacant land—any real property.

Will: ALL California real estate triggers probate regardless of value. Even a $300K condo with a $250K mortgage requires probate. The property can't be sold or transferred for 18-24 months during probate.

Winner: Living Trust essential for California real estate owners.

5. Incapacity Planning

Living Trust: If you become incapacitated (dementia, stroke, accident), your successor trustee manages your trust assets immediately—no court involved. Pay bills, manage investments, maintain properties.

Will: Provides ZERO incapacity protection. A will only works after death. If you become incapacitated with just a will, your family must petition court for conservatorship ($10,000-$15,000, 4-6 months, ongoing supervision).

Winner: Living Trust includes incapacity planning. (Note: You also need a Power of Attorney for assets not in the trust.)

6. Naming Guardians for Children

Living Trust: Your trust package includes a "pour-over will" where you name guardians for minor children. So you get both—trust for probate avoidance AND guardian designation.

Will: The ONLY way to legally name guardians for minor children is through a will. If you have kids under 18, you need at least a will (or trust with pour-over will).

Winner: Tie. Both accomplish this (trust via pour-over will).

7. Out-of-State Property

Living Trust: If you own property in multiple states, the trust avoids probate in ALL states. One trust, no matter where property is located.

Will: Requires separate probate proceedings in EACH state where you own property. Own a vacation home in Arizona? That's two probates—California AND Arizona. Double the time, double the cost.

Winner: Living Trust essential for multi-state property owners.

8. Asset Distribution Timeline

Living Trust: Beneficiaries can receive assets within days or weeks after death. Your successor trustee has immediate authority to distribute according to your instructions.

Will: Nobody receives anything for 18-24 months during probate. All assets are frozen. Even paying bills from estate accounts requires court approval. Beneficiaries wait years.

Winner: Living Trust provides immediate access.

9. Ongoing Management

Living Trust: Requires "funding"—retitling assets into the trust name. Takes a few hours initially. Must remember to title new assets in trust name.

Will: No funding required. Just sign the will and you're done. Easier upfront.

Winner: Will is simpler initially, but trust's modest effort saves massive costs later.

10. The $184,500 Threshold

California allows small estates (under $184,500, excluding real estate) to use simplified procedures instead of full probate. This is the main scenario where a will is adequate.

Living Trust: Avoids probate regardless of estate size—$184,500 or $10 million.

Will: If your estate is under $184,500 AND you own no real estate, simplified procedures may work. But most California homeowners exceed this threshold.

Winner: Living Trust works for any estate size. Will works only for small estates without real estate.

✓ You NEED a Living Trust If:

• You own ANY California real estate (home, rental, land)
• Your total assets exceed $184,500
• You own a business
• You own property in multiple states
• You want to avoid probate court completely
• Privacy is important to you
• You want immediate asset distribution to beneficiaries

→ Start with our Living Trust ($400-$500) | Learn how to create one

⚠ A Will May Be Adequate If:

• You own NO real estate
• Your total assets are under $184,500
• You're young and just starting out
• You primarily need to name guardians for children
• You plan to upgrade to a trust later as wealth grows

→ Start with our Will Package ($150-$250)

Note: You can upgrade to a trust later. We make the transition easy.

🤔 Not Sure? Take Our Quiz

Answer 7 quick questions about your situation and get a personalized recommendation.

Can I have both a living trust and a will?

Yes, and most people with trusts do. Your trust package includes a "pour-over will" that serves as a backup—it catches any assets not in the trust and "pours" them into the trust after death. The will also names guardians for minor children.

Does a will avoid probate in California?

No. ALL wills in California must go through probate court. The only ways to avoid probate are: living trust, joint ownership with right of survivorship, beneficiary designations, or transfer-on-death deeds. A will does NOT avoid probate—it must be validated through probate.

Is a living trust worth the extra cost?

Absolutely. You pay $250-$350 more upfront ($400-$500 for trust vs $150-$250 for will), but you save $27,000-$68,000+ in probate costs. The trust pays for itself 100x over. If you own California real estate, it's essential. See why our service is affordable →

What if I only have a will—can I upgrade to a trust later?

Yes. Many people start with a will when young and upgrade to a trust when they buy a home or their assets grow. Call us at (818) 291-6217 and we'll help you transition. We can often credit your will cost toward a trust.

Do I need a lawyer to create a trust or will in California?

You can create either yourself, but attorney review is highly recommended. Our service provides attorney-prepared documents reviewed by California attorney Rozsa Gyene (State Bar #208356) at a fraction of traditional attorney costs.

What happens if I die without a will or trust in California?

You die "intestate" and California's intestate succession laws determine who inherits (spouse, children, parents, siblings in priority order). Your estate still goes through probate (18-24 months, 4-6% fees), but the court decides distribution. Nobody names guardians for your children—the court decides. This is the worst scenario.