How Does a Living Trust Work in California?

A living trust is one of the most powerful tools in California estate planning. It allows you to maintain control over your assets during your lifetime, avoid probate after death, and provide a smooth transfer of property to your heirs. But how exactly does a living trust work in California—and is it right for you?

In this post, we’ll break down how a living trust functions, what it can (and can’t) do, and how it can save your family time, money, and stress.

What Is a Living Trust?

A living trust (also known as a revocable trust) is a legal document you create during your lifetime to hold and manage your assets. You transfer ownership of your property into the trust, and you (the trustor) typically serve as the trustee—meaning you maintain full control of everything during your life.

You also name a successor trustee who will take over managing the trust when you die or become incapacitated.

How a Living Trust Works in California

1. You Create the Trust.

   With the help of an attorney, you draft a trust document that outlines:

   • Who will manage your assets (you and/or a co-trustee)

   • Who inherits your property after your death (your beneficiaries)

   • Who steps in as successor trustee if you're unable to manage the trust

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2. You Fund the Trust.

   This step is critical: You must transfer ownership of your assets into the trust.

   This includes:

   • Real estate

   • Bank accounts

   • Investment accounts

   • Business interests

   • Personal property

     
     

   Assets not transferred into the trust may still need to go through probate.

   
   

3. You Manage the Trust During Your Lifetime.

   While you're alive and well, you continue to control everything:

   • Buy and sell property

   • Spend trust assets

   • Add or remove beneficiaries

   • Amend or revoke the trust entirely

     
     

4. If You Become Incapacitated.

   If you become mentally or physically unable to manage your affairs, your successor trustee takes over, without court involvement. This is a key benefit over just having a will.

   
   

5. After You Pass Away.

   Your successor trustee distributes the trust assets to your named beneficiaries without going through probate. This process is private, faster than probate, and typically less expensive.

   
   

Avoiding Probate in California

Probate in California can be time-consuming and costly, especially with real estate involved. A properly funded living trust allows your estate to bypass probate court, meaning:

• No court hearings or delays

• No probate fees or statutory attorney’s fees

• No public record of your estate

• Faster distribution to beneficiaries

This is one of the most common reasons Californians choose to set up a living trust.

✅ What a Living Trust Can Do

• Avoid probate for most assets

• Provide for minor children or dependents with special needs

• Allow you to name out-of-state beneficiaries without triggering extra legal complications

• Ensure continuity of asset management if you become incapacitated

• Keep your estate plan private (wills become public after death)

• Handle real estate in multiple states (without needing probate in each)

🚫 What a Living Trust Can’t Do

• It won’t protect assets from creditors during your lifetime (revocable trusts do not provide asset protection)

• It doesn’t eliminate the need for other documents like a pour-over will, durable power of attorney, or advance health care directive

• It doesn’t automatically protect against estate taxes (though advanced trust planning can help)

Do You Still Need a Will?

Yes—usually a pour-over will. This type of will acts as a safety net, catching any assets that weren’t transferred into your trust during your lifetime and “pouring” them into the trust after your death. However, assets left out may still need to go through probate.

Final Thoughts

A living trust is a cornerstone of smart estate planning in California. It gives you more control, avoids probate, protects your privacy, and ensures your loved ones are taken care of quickly and efficiently.

If you’re unsure whether a living trust is right for you, or need help setting one up—our experienced team is here to help.

📞 Call (626) 460-1763📧 Email LV@MoravecsLaw.com

Let’s make sure your plan works exactly the way you want, when it matters most.

Contact the top-rated California trust and probate attorneys Moravec, Varga & Mooney today to schedule a telephonic consultation. Have questions? call (626) 460-1763 or email LV@MoravecsLaw.com.

Southern California Probate Lawyer Serving all counties in California, including Los Angeles, Riverside, San Bernardino, Sacramento, Santa Cruz & Beyond.