Estate Planning Considerations for California Residents
By Edward P. Schlesier, Esq.
Certified Specialist in Trust, Estate, and Probate Law
June 19, 2026
Imagine a family home in California worth $2 million. The owner passes away, leaving the property to their children under the owner’s will. Instead of transferring the home quickly and privately, the family learns it is required to open a probate case to transfer the house through a court administration. The family learns the probate process typically take more than a year (and sometimes multiple years), cost tens of thousands of dollars in statutory legal fees and personal representative fees, and expose financial details to the public record.
Situations like this occur every day across California. In many cases, they can be avoided with proper planning.
One of the most common tools used to avoid unnecessary court proceedings is the revocable living trust. Understanding how California law treats estates at death and during incapacity helps clarify why so many individuals choose to incorporate a trust into their estate plans.
What Happens When Someone Dies Without a Trust?
When a California resident dies owning assets in their individual name without a trust, those assets will generally pass through a court-supervised process known as probate.
Probate is the legal procedure used to transfer property from a deceased person to their heirs or beneficiaries. The court appoints a personal representative to gather assets, notify creditors, pay expenses and taxes, and ultimately distribute the remaining property.
Although probate serves an important legal purpose, many families are surprised to learn the process can be time-consuming, costly, and public.
The Cost of Probate
California law establishes statutory compensation for both the personal representative (i.e. executor) and the estate’s attorney based on the gross value of the estate. Because these fees are calculated before deducting mortgages or other debts, the cost of probate can be significant.
For example, an estate valued at $2 million costs approximately $66,000 in combined statutory fees for the executor and attorney, not including court filing fees, appraisal costs, or additional administrative expenses.
For families already dealing with the loss of a loved one, these expenses can come as a surprise and an unexpected burden.
The Time Commitment
Probate proceedings commonly take nine to eighteen months in California, and in some situations they last longer. Delays may occur if real estate must be sold, creditors file claims, or disputes arise among heirs.
During this time, beneficiaries may have limited access to estate assets while the court-supervised process unfolds.
A Public Process
Another aspect of probate many individuals overlook is it is a public proceeding. Court filings typically include an inventory of assets and their estimated values, which become part of the public record.
For families who value privacy regarding financial matters, this can be an important consideration.
Exceptions to Probate
Even without a trust, certain assets may pass outside the probate process.
Examples include jointly owned property (but not on the death of the final owner), retirement accounts and life insurance policies with designated beneficiaries, and certain transfer-on-death accounts. In addition, smaller estates may qualify for simplified procedures under California law.
These exceptions, however, do not always eliminate probate entirely, particularly when an individual owns real estate or has assets titled solely in their name.
Planning for the Unexpected: Incapacity
Estate planning is not only to address what happens after death. It is also to plan for the possibility someone may become unable to manage their financial affairs or care during life.
If an individual becomes incapacitated without adequate planning, family members may need to seek a conservatorship through the courts in order to manage finances or make care decisions.
Conservatorships and Court Supervision
A conservatorship is a court-supervised arrangement in which a judge appoints a responsible person to manage the financial affairs or personal care of someone who can no longer do so independently.
The process typically involves medical evidence, court investigations, notice to family members, and a formal hearing. Once established, the conservator may be required to provide ongoing reports and financial accountings to the court.
While conservatorships can be necessary in certain circumstances, many families prefer to avoid the expense, delay, and continuing court oversight involved.
How a Trust Can Simplify Estate Administration
A revocable living trust allows a person to transfer ownership of assets to a trust during their lifetime while continuing to manage those assets as trustee.
The trust document names a successor trustee who can step in to manage the trust if the original trustee becomes incapacitated or passes away.
Because the trust—not the individual—owns the assets, property held in a properly funded trust generally does not need to pass through probate. Instead, the successor trustee can administer the trust privately, pay final expenses, and distribute assets according to the instructions contained in the trust.
Trusts and Incapacity Planning
Trusts can also provide an important safeguard during periods of incapacity. If the person who created the trust becomes unable to manage their affairs, the successor trustee can step in and manage trust assets without the need for court intervention.
This can allow bills to be paid, investments to be managed, and real estate to be sold or refinanced without requiring a conservatorship proceeding.
For many families, this continuity of financial management is one of the most valuable benefits of a trust-based estate plan.
When a Trust May Be Especially Beneficial
A trust may be particularly beneficial for individuals who:
- Own real estate
- Have assets exceeding California’s small estate thresholds
- Value privacy in financial matters
- Wish to reduce the likelihood of probate proceedings
- Want a clear plan in place if incapacity occurs
- Have blended families or minor children
Given the value of real estate in California, many homeowners discover a trust can be an efficient and practical planning tool.
The Bottom Line
Every family’s circumstances are unique, and estate planning should reflect personal goals, assets, and family dynamics.
Understanding how California’s probate and conservatorship systems operate often leads to the same conclusion: thoughtful planning today can significantly reduce legal complications tomorrow.
A properly structured and funded trust can help streamline the transfer of assets, maintain privacy, and provide continuity of financial management when it matters most.
About the Author
Edward P. Schlesier, Esq. is an attorney practicing in the areas of estate planning, trusts, and wealth transfer strategies. His practice focuses on helping individuals and families design practical estate plans to protect assets, reduce administrative burdens, provide clarity for future generations, and to reduce or eliminate transfer tax (estate, gift, and GST tax) and income tax.
He works with clients to create tailored planning strategies to address probate avoidance, incapacity planning, and efficient transfer of wealth while maintaining privacy and simplicity wherever possible.
Disclaimer
This article is provided for general informational purposes only and does not constitute legal advice. Readers should consult qualified legal counsel regarding their specific circumstances before making estate planning decisions.