California Estate Planning Quiz: Living Trust or Will?

Result: A Living Trust

This result comes up when you own real estate in California or another state, when your assets in your name alone are over $208,850, or when you own a business. Without a trust, that property generally goes through probate or, for a home worth up to $750,000, a court petition under Probate Code §13151. A funded living trust lets your successor trustee transfer it without a court case.

Price: $400 for one person, $500 for a married couple. A trust keeps your home out of probate only once the home is deeded to it, so for one homeowner it is a $400 trust plus $100 deed. The deed is $100 for each property. The package includes the trust, a pour-over will, a durable power of attorney, an advance health care directive, a HIPAA authorization, a certification of trust, a trustee affidavit, an assignment of personal property and a personal property memorandum.

Next steps

1. See what would happen to your property today with the Do I need probate? tool.
2. Estimate the statutory fees with the probate cost calculator.
3. List what goes into the trust with the trust funding checklist, and read how the trust transfer deed for your home works.
4. Real estate in another state: read out-of-state property and your California trust. The $100 deed covers California property only; a deed for land in another state should be prepared or reviewed by a lawyer licensed there.
5. A business: read a living trust for a small business owner. A business with partners or co-owners may need more than a flat-fee package, so call first.
6. Children under 18: read naming a guardian for minor children.

Result: A Will Plan for Now

This result comes up when you do not own real estate or a business and your assets in your name alone are $208,850 or less, or you are not sure. If the total is still at or under that limit at death, your family can collect your personal property with a small estate affidavit 40 days after death, with no probate case (Probate Code §13100). The will names who receives your property, who handles it, and a guardian for minor children.

If you are not sure about the total, add it up first with the Do I need probate? tool. If it is over $208,850, a will alone means probate, and a trust is the better fit.

Price: $150 for one person, $250 for a married couple. The plan includes a will, a durable power of attorney, an advance health care directive and a HIPAA authorization. Move up to a living trust when you buy a home, start a business, or your assets grow past the limit.

Next steps

1. Read what makes a California will valid.
2. Compare the two in living trust or will: the full comparison.
3. Children under 18: read naming a guardian for minor children.

Result: Check the Trust You Already Have

This result comes up when you already have a living trust. A trust avoids probate only for property titled in the trust's name. A home that was never deeded to the trust, or an account opened after the trust was signed, can still go through probate. If the deed to your California home still shows you rather than you as trustee, a trust transfer deed fixes that, and recording it does not reassess your property tax (Revenue and Taxation Code §62).

Next steps

1. Check each asset with the trust funding checklist.
2. Score the whole plan with the estate plan health check, which lists the three most important fixes.
3. Home not in the trust: read how the trust transfer deed works.
4. Read when to update a living trust after a marriage, divorce, death, birth, move or new property.

Result: Talk to the Office First

This result comes up when a beneficiary has special needs. A person who receives needs-based benefits such as SSI or Medi-Cal can lose eligibility by inheriting money outright. A special needs trust (also called a supplemental needs trust) is written to hold the inheritance for that person without that effect. It is outside the flat-fee packages on this site, so call before you start.

Next steps

1. Call (818) 337-4071 to talk about a special needs trust and full-service representation.
2. Read special needs trusts in California.

Result: Come Back at 18

California sets 18 as the age to make a will (Probate Code §6100). Until then, your parents' or guardian's plan is the one that covers you, and a parent can nominate a guardian for you in a will.

Next steps

1. Read the plain English guides to California estate planning.
2. Look up any term in the estate planning glossary.