Revocable Living Trusts in California
Created by FindLaw's team of legal writers and editors | Last reviewed October 07, 2019
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The probate process is used to determine what to do with a person's property after they pass unless there is another method already in place, which is where a trust comes into play. A trust is a common estate planning tool used to avoid having to go through probate.
However, contrary to popular belief, avoiding probate does not avoid estate taxes, and estate taxes must be paid just as they would when someone has a will. This article offers general information about one specific type of trust used fairly often in California, the revocable living trust.
The Purpose of a Revocable Living Trust
The basic purpose of a living trust is to allow someone, often a loved one such as a surviving spouse or adult children to maintain control of their property while making sure the property is managed according to their wishes upon death or incapacity. Revocable living trusts are used by thousands of people in California to avoid having their estates go through the probate process.
In California, estates with a market value over $150,000 may be subject to the full probate process, and a simplified process is available for estates worth less than $150,000.
California Revocable Living Trusts Overview
The following table outlines the specifics of California's trusts laws.
Code Section |
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Types of Trusts |
Basic trust: relationship between three roles (can be held by same person)
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How the Trust Is Funded |
Given the nature of the trust relationship, every trust must manage specific property that is listed in the trust document. When you establish a living trust, the next step will involve transferring assets into the trust, such as bank accounts, real estate, and stocks. After the transfer, these assets still remain in your control, because you are the original trustee. |
What Happens after Death |
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Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.
Conclusion
A revocable living trust can be a valuable planning tool to help you maintain control over your assets during your lifetime and at death. A living trust may be used as a substitute for a will, allowing flexibility for major life changes such as marriage, divorce, and children. A living trust can also help you reduce or eliminate probate and administrative expenses when your estate is settled. By creating a living trust, an experienced attorney may be able to lower estate costs and avoid unnecessary taxation at the federal and state levels.
Get Legal Help with Your Questions About Revocable Trusts in California
Are you interested in learning more about revocable living trusts and how they can help you skip the probate process? Then, you should contact a skilled trusts lawyer near you. Not only can a lawyer answer any questions you may have, he or she can also you help you set up or change your revocable living trust.
Next Steps: Search for a Local Attorney
Contact a qualified attorney.