List of Assets That Can (And Cannot) Go Into a California Revocable Trust

Setting up a revocable living trust is one of the most effective ways to avoid California probate and ensure a smooth transition of assets to your loved ones. But not every asset belongs in a trust. Knowing which assets can—and cannot—be placed into a California revocable trust is essential for building an estate plan that actually works.

Here’s a breakdown to help you make informed decisions and avoid common pitfalls.

✅ Assets That Can Go Into a California Revocable Trust

These are assets that should generally be transferred into your trust to avoid probate and allow for smooth administration:

1. Real Estate (Including Your Primary Residence)

• Homes, vacation properties, and rental properties located in California or other states can and should be titled in the name of your trust.

• This helps your family avoid California Probate Court proceedings and ensures faster transfer to beneficiaries.

2. Bank Accounts

• Checking, savings, and money market accounts can be retitled in the name of the trust.

• Some people also create “pour-over” provisions to funnel these into the trust at death if they forget to retitle them.

3. Non-Retirement Investment Accounts

• Stocks, bonds, brokerage accounts, and mutual funds (not held in retirement accounts) can be transferred to the trust to avoid becoming part of the probate estate.

4. Business Interests

• Interests in LLCs, corporations, and partnerships can often be assigned to your revocable trust, though you may need consent from other partners or shareholders.

5. Personal Property

• Jewelry, art, collectibles, and valuable heirlooms can be included by attaching a personal property memorandum to the trust.

6. Vehicles (With Caution)

• Cars and other vehicles can be placed in the trust, but often it’s not necessary unless the estate owns multiple or valuable vehicles.

• In California, vehicles valued under a certain amount may be transferred without full probate, using simplified forms.

❌ Assets That Cannot (or Should Not) Go Into a Revocable Trust

Some assets are either restricted by law or best left out of your trust for practical or tax reasons:

1. Retirement Accounts (IRA, 401(k), 403(b))

• You cannot transfer ownership of a retirement account to a trust while you’re alive.

• Instead, name your trust as a beneficiary if appropriate (for example, for minor or special needs beneficiaries), but consult a tax advisor first.

2. Health Savings Accounts (HSAs) and FSAs

• Like retirement accounts, these are individual accounts that can’t be retitled in the name of a trust.

• You can name your trust as a beneficiary if necessary.

3. Life Insurance Policies

• You don’t put the policy itself in the trust; instead, you can name your trust as the beneficiary if you want the proceeds to be managed under trust terms.

4. Annuities

• Depending on the type, annuities may lose tax advantages if retitled in the name of a trust. It’s often better to name the trust as a beneficiary, not the owner.

5. Certain Out-of-State Property

• While you can include out-of-state property in a trust, you should consult a California estate planning attorney to coordinate state-specific rules or consider creating a secondary trust in that jurisdiction.

Bonus Tip: Don’t Forget to “Fund” the Trust

Creating a trust is only the first step. If you don’t transfer assets into it (a process called “funding”), then your estate may still go through California probate—defeating the purpose of the trust.

Unfunded or partially funded trusts are one of the top reasons people end up in probate court in California.

Final Thoughts

A properly funded California revocable trust can help your family avoid the delays and costs of California probate—but only if you know what to include (and what not to). From real estate to financial accounts, getting your trust assets right is the key to making your California estate plan work the way you intend.

Not sure how to transfer specific assets into your trust? A qualified California estate planning attorney can walk you through the process and help you avoid costly mistakes.

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.