Joint Trusts or Separate Trusts for Married Couples in California: Which Is Better?

When married couples in California begin their estate planning journey, one of the most important decisions they’ll face is whether to create a joint trust or separate trusts. Both options can help avoid probate, reduce estate taxes, and provide for loved ones, but they differ significantly in structure, privacy, and control.

In this article, we’ll break down the pros and cons of joint trusts vs. separate trusts for California married couples, helping you determine which strategy best fits your estate planning goals.

Understanding the Basics

✅ Joint Trust

A joint trust is a single revocable living trust created by both spouses. They act together as co-settlors and often serve as co-trustees. It typically holds community property and jointly held assets, and may also include separate property with proper documentation.

✅ Separate Trusts

In this arrangement, each spouse creates their own individual revocable trust. These trusts hold their separate property and any share of community property allocated to them individually. Each spouse is the trustee of their own trust during life.

Key Factors to Consider in California

California is a community property state, which means most assets acquired during marriage are jointly owned. That adds an extra layer of complexity when deciding between joint or separate trusts.

Let’s compare both approaches across several key categories:

Joint vs. Separate Trusts: Side-by-Side Comparison

Category	Joint Trust	Separate Trusts
Structure	One trust shared by both spouses	Two individual trusts
Best For	Long-term marriages, shared financial goals	Second marriages, blended families, asset protection
Privacy	Lower – all terms may be revealed to both sides	Greater – each trust can remain private
Control	Shared control	Each spouse controls their own trust
Asset Segregation	Mixed community and separate property in one	Clear distinction between separate and community property
Estate Tax Planning	May limit tax planning flexibility	Better for advanced estate tax planning
Post-Death Administration	One trust to manage	Each trust may need separate administration
Funding Simplicity	Easier to set up and fund jointly held assets	More complex to divide community property

Pros and Cons of Joint Trusts

✅ Advantages

• Simple and cost-effective to establish

• Streamlined trust administration after the first spouse’s death

• Ideal for couples with the same beneficiaries and goals

❌ Disadvantages

• Less flexible for estate tax planning

• May complicate division of separate property

• All trust terms may be accessible to surviving spouse (limits privacy)

Pros and Cons of Separate Trusts

✅ Advantages

• Clear separation of separate vs. community property

• Offers privacy and control, especially in blended families

• Greater flexibility for tax planning and creditor protection

❌ Disadvantages

• More complex and expensive to set up and maintain

• Requires careful property classification and funding

• Each trust must be administered separately after death

When to Use a Joint Trust

A joint trust may be appropriate when:

• You’re in a long-term marriage with unified goals

• You hold mostly community property or joint assets

• You want simplified administration after the first spouse dies

• You have identical beneficiaries (e.g., adult children from the same marriage)

When to Use Separate Trusts

Separate trusts are often better when:

• You have significant separate property, such as pre-marriage assets or inheritances

• You’re in a second marriage and want to protect children from a prior relationship

• You want to maintain privacy or control over your portion of the estate

• You are engaging in advanced estate or asset protection planning

Hybrid Approach: Community Property Trusts with Separate Schedules

Some couples opt for a hybrid structure—creating a joint trust but maintaining separate property schedules within it. This offers a middle ground by:

• Allowing joint administration

• Preserving property ownership distinctions

• Providing greater clarity for post-death division

However, this approach must be carefully drafted by a skilled estate planning attorney to be effective.

Final Thoughts

Whether you choose a joint trust or separate trusts depends on your unique circumstances, including the nature of your assets, your marital history, your beneficiaries, and your tax planning needs. Each approach has its pros and cons, and the wrong choice could lead to unintended consequences down the line.

To ensure your trust reflects your intentions and complies with California law, it’s essential to consult a qualified California estate planning attorney who can evaluate your situation and guide you through the process.

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.