California Estate Planning Basics

Estate planning ensures your assets go where you want, your family is protected, and your wishes are honored. In California, proper planning can also help your family avoid the time and expense of probate.

This guide covers the basic documents and strategies every California adult should consider.

Why Estate Planning Matters

Without a Plan

If you die without an estate plan:

California law decides who inherits (intestate succession)
Your family goes through probate court
A judge may choose your children's guardian
Assets may not go to who you intended

With a Plan

A proper estate plan:

You choose who inherits
Can avoid probate entirely
You name guardians for minor children
Reduces family conflict and costs

Core Estate Planning Documents

1. Will (Last Will and Testament)

A will is the foundation of most estate plans.

What It Does:

Names who receives your property
Appoints an executor to manage your estate
Names guardians for minor children
Can create trusts for beneficiaries

California Requirements:

Must be 18 or older
Must be of sound mind
Must be signed by the testator
Must be witnessed by two people

Limitations:

A will goes through probate
Becomes public record
Does not help during incapacity

2. Revocable Living Trust

A living trust is the most effective way to avoid probate in California.

What It Does:

Holds your assets during life and transfers them at death
Avoids probate for assets in the trust
Allows for incapacity management
Keeps your affairs private

How It Works:

You create the trust document
You transfer assets into the trust
You remain in control during life
At death, the successor trustee distributes assets

Why Californians Use Trusts:

California probate is expensive (statutory fees)
Probate takes 9-18 months
Trusts are private; wills are public
Trusts work across state lines

3. Pour-Over Will

If you have a trust, you also need a pour-over will.

What It Does:

Catches any assets not in the trust
"Pours" them into the trust at death
Names guardians for minor children
Serves as a backup

4. Durable Power of Attorney for Finances

This document names someone to handle your finances if you cannot.

What It Does:

Authorizes an agent to act on your behalf
Covers banking, investments, real estate
Can be effective immediately or upon incapacity
Ends at your death

Why You Need It: Without this document, your family may need a conservatorship (court-supervised guardianship) to manage your finances if you become incapacitated. This document works alongside your executor designation.

5. Advance Health Care Directive

Also called a health care power of attorney.

What It Does:

Names someone to make medical decisions for you
States your treatment preferences
Addresses end-of-life care
Includes HIPAA authorization

California-Specific: California has a statutory form for advance directives. You can use it or create a custom document.

6. HIPAA Authorization

Allows designated people to access your medical information. Often included in the advance directive but can be separate.

Avoiding Probate in California

Why Avoid Probate?

California probate is:

Expensive: Statutory fees for attorneys and executors
Slow: 9-18 months minimum
Public: Anyone can see the court file
Court-supervised: Requires hearings and approvals

Probate-Avoidance Strategies

Revocable Living Trust: Assets in the trust skip probate entirely. Most effective for real estate and large accounts.

Beneficiary Designations: Retirement accounts, life insurance, and POD/TOD accounts pass directly to named beneficiaries.

Joint Ownership: Property held as joint tenants with right of survivorship passes to the survivor automatically.

Transfer on Death Deed: California allows TOD deeds for real estate. The property transfers at death without probate.

Small Estate Procedures: Estates under $208,850 (as of April 2025) can use simplified procedures instead of full probate.

Special California Considerations

Community Property

California is a community property state:

Property acquired during marriage is owned 50/50
Each spouse can only give away their half
Affects estate planning for married couples

Proposition 19

Prop 19 changed property tax rules for inherited property:

Parent-child exclusions are limited
Applies to transfers after February 2021
May cause property tax increases for heirs

Statutory Probate Fees

California sets attorney and executor fees by statute:

4% of first $100,000
3% of next $100,000
2% of next $800,000
And so on

For a $1 million estate, fees total $46,000 (attorney + executor). This is why many Californians use trusts.

Getting Started

Step 1: Inventory Your Assets

List everything you own:

Real estate
Bank and investment accounts
Retirement accounts
Life insurance
Business interests
Personal property

Step 2: Identify Your Goals

Consider:

Who should inherit?
Who should manage your estate?
Who should care for minor children?
Do you want to avoid probate?
Are there special needs to address?

Step 3: Choose Your Team

Select people to serve as:

Executor/Trustee
Guardian for minor children
Agent for finances (power of attorney)
Agent for health care

Step 4: Create Your Documents

Options:

Hire an estate planning attorney (recommended)
Use online services (for simple situations)
DIY with statutory forms (risky)

Step 5: Fund Your Trust

If you create a trust, transfer assets into it:

Re-title real estate
Change bank account ownership
Update beneficiary designations

An unfunded trust does not avoid probate.

Step 6: Store Documents Safely

Keep originals in a secure location:

Fireproof safe at home
Bank safe deposit box
Attorney's office

Tell your executor and agents where to find them.

Step 7: Review Regularly

Update your plan when:

Family changes (marriage, divorce, births, deaths)
Assets change significantly
Laws change
Every 3-5 years minimum

Common Mistakes to Avoid

Not Having a Plan

The biggest mistake is no plan at all. Even a basic will is better than nothing.

Unfunded Trust

Creating a trust but not transferring assets into it. The assets will still go through probate.

Outdated Beneficiaries

Old beneficiary designations override your will. Update them after major life changes.

Forgetting Digital Assets

Include passwords, online accounts, and cryptocurrency in your planning.

DIY for Complex Situations

Simple estates can use basic documents. Complex situations (businesses, blended families, significant assets) need professional help.

When to Hire an Attorney

Consider professional help if you have:

Real estate worth over $200,000
A business or professional practice
Children from multiple relationships
Special needs family members
Significant assets
Complex family dynamics

Frequently Asked Questions

Do I need a trust in California?

Not legally required, but strongly recommended if you own real estate or have assets over $208,850. Trusts avoid expensive and slow California probate.

What happens without a will in California?

Your assets pass by California's intestate succession laws. Typically to your spouse and children, but the shares depend on family structure.

How much does estate planning cost in California?

Basic will packages: $300-$1,000. Trust-based plans: $1,500-$5,000+. Compare to probate costs of 4-6% of estate value.

Can I do my own estate planning?

You can, but mistakes are common and can be costly. DIY is risky for anything beyond simple wills. California law has specific requirements.

How often should I update my estate plan?

Review every 3-5 years and after major life events: marriage, divorce, births, deaths, significant asset changes, or moves to another state.

Related Guides

Sources:

"California Probate Code Sections 6100-6390," California Legislative Information, 2024, https://leginfo.legislature.ca.gov/
"California Probate Code Section 4700," California Legislative Information, 2024, https://leginfo.legislature.ca.gov/
"Estate Planning," California State Bar, 2024, https://www.calbar.ca.gov/

This guide provides general information about estate planning in California. Consult with a California estate planning attorney for advice specific to your situation.