If you just bought a house in California, a living trust may be the single most important legal document you set up as a new homeowner. Without one, your property could be forced through California’s probate process when you die (a court proceeding that can take 12 to 18 months, cost thousands in statutory fees, and become public record). Factors that affect your situation include the value of your home, whether you have a spouse or children, and how your property is currently titled.
Buying a home in California is one of the biggest financial decisions you will ever make. A living trust makes sure that decision protects your family long after the keys change hands and that your home does not end up stuck in the California court system when you are gone.
You just went through escrow, signing a stack of documents thicker than your forearm. It is easy to assume the legal side of things is handled. It is not, at least not the part that protects what you just bought.
Seligson Law works with California homeowners to build estate plans that are clear, practical, and built around real life. This guide explains why a living trust matters the moment you own California real estate, what California law requires, and what happens if you wait.
Why Owning a Home in California Changes Your Estate Planning Picture Immediately
The moment you close on a California property, your estate almost certainly crosses the threshold that triggers formal probate. California’s probate threshold for personal property is currently $208,850 under Probate Code Section 13100, and your home alone is likely worth several times that amount. If you die owning your home in your own name, your family will need to go through the Superior Court to transfer it, regardless of whether you have drafted a will.
What Probate Actually Means for Your Family
For a typical California home, probate is a court process with real costs and real delays:
- Time: Probate typically takes 12 to 18 months for a straightforward estate, and more complex situations run longer.
- Restrictions: Your family cannot sell, refinance, or transfer the property during that time without court authorization.
- Privacy: Every filing is public record.
- Cost: Statutory attorney and executor fees under California Probate Code Section 10810 are calculated on the gross value of the estate, not your equity. On a $1.2 million home, probate fees are $54,000. Your mortgage balance is irrelevant.
A living trust sidesteps this entirely. Assets held in a properly funded trust do not go through probate. They transfer directly to your beneficiaries through your successor trustee, on your timeline, without a court filing.
What “Properly Funded” Means for California Homeowners
Creating a living trust is step one. Funding it is what makes it work. For your home specifically, funding the trust means recording a new deed that transfers the property from your name into the name of your trust.
Until that deed is recorded with your county recorder’s office, your home is not in the trust, and it will still go through probate. This is the most costly estate planning mistake California homeowners make after setting up a trust.
What California Law Says About Living Trusts and Real Property
California does not require a living trust, but for homeowners, the alternative is probate, and probate in California is among the most expensive and time-consuming in the country.
Proposition 19: What It Means When You Leave Your Home to Your Kids
When you die and your home passes to your children, California can reassess the property at its current market value, which means your kids could owe significantly higher property taxes overnight. Proposition 19, which has been in effect since 2021, is the law that governs this.
The good news is that a living trust does not trigger a reassessment while you are alive. The problem comes after you are gone. For your children to avoid or limit a reassessment, they must move into the home and make it their primary residence. Even then, the tax protection is capped, currently at $1,044,586 above your original assessed value for your primary residence, for transfers occurring between February 16, 2025, and February 15, 2027.
This is why your trust needs to be drafted with current California law in mind, not pulled from a generic online template. Getting this wrong can cost your children tens of thousands of dollars in property taxes every single year.
Community property and your home
California is a community property state. If you bought your home while married, it is likely community property, which means both spouses have an ownership interest. A well-drafted living trust accounts for this.
Both spouses typically transfer their interest in the home into a joint trust or coordinated individual trusts. How the trust is structured affects your step-up in basis when the property eventually passes to heirs, which has income tax consequences worth understanding before you sign anything.
If You Don’t Set Up a Living Trust After Buying in California
If you die owning your California home in your own name, your family faces probate in the Superior Court of the county where the property is located. Here is what that process requires:
- Hiring a probate attorney
- Waiting out mandatory creditor notice periods
- Attending court hearings
- Receiving court authorization before the home can be sold or transferred
- Accepting that every step of the process becomes public record
- Paying statutory fees that are set by law and non-negotiable
What Happens If You Become Incapacitated
Death is not the only scenario that puts your home at risk. Without a trust and a durable power of attorney in place, your family may need to petition the court for a conservatorship just to manage your finances and your home. Conservatorship proceedings are expensive, slow, and public. A properly structured estate plan prevents this entirely.
You just took on a significant asset. A living trust is what makes sure it goes where you intend, on the timeline you choose, without court involvement.
Set Up Your California Living Trust Before You Need One
Most California homeowners do not think about estate planning until something goes wrong. By then, the court is already involved, the fees are already set, and your family is left navigating a process that could have been avoided entirely.
A living trust is not complicated. It is a straightforward legal document that keeps your home out of probate, out of the courts, and in your family’s hands, on your terms. The key is making sure it is drafted correctly, funded properly, and built around current California law.
Ken Seligson, named a 2026 Southern California Super Lawyers Rising Star, works with California homeowners to create living trusts that are clear, practical, and done right the first time time. If you just bought a home and want to understand what a trust means for your specific situation, schedule a consultation or call 213-293-6692.
Frequently Asked Questions About Estate Planning After Buying a Home in California
1. Do I need a living trust if I just bought a house in California?
In most cases, yes. California’s probate threshold is currently $208,850, and almost every homeowner in the state is above it. Without a living trust, your home will need to go through the Superior Court probate process when you die, which can take over a year and cost thousands in statutory fees. A living trust keeps your home out of court and transfers it directly to your family.
2. Does putting my house in a living trust trigger a property tax reassessment in California?
No. Transferring your home into a revocable living trust during your lifetime is not treated as a change in ownership under California law, so it does not trigger a Proposition 13 property tax reassessment. However, when the home passes to your children after your death, Proposition 19 rules apply. Whether a reassessment occurs depends on whether your child makes the property their primary residence and the current value of the home relative to your assessed value.
3. What happens to my home if I die without a living trust in California?
If you die without a will, your home will go through California probate. Your family will need to petition the Superior Court, wait through mandatory creditor notice periods, attend hearings, and receive court authorization before the property can be transferred or sold. The process is public record and typically takes 12 to 18 months. Statutory attorney and executor fees are calculated on the gross value of the estate, not your equity. Setting up a living trust in California before this situation arises is far simpler and less costly than probate after the fact.
4. Does a living trust in California cover both spouses?
Yes, if it is structured correctly. Because California is a community property state, both spouses typically have an ownership interest in a home purchased during the marriage. A properly drafted trust accounts for this, often through a joint trust or coordinated individual trusts. How the trust is structured also affects the step-up in basis your heirs receive, which has income tax implications. Ken Seligson and the team can walk you through the right structure for your situation.
5. Do I still need a will if I have a living trust in California?
Yes. A pour-over will acts as a safety net for any assets you did not transfer into your trust or acquired after setting it up. Without it, those assets would be distributed under California’s intestacy laws, which may not reflect your wishes. A complete California estate plan includes a living trust and a pour-over will, plus a durable power of attorney, and an advance healthcare directive.
6. How much does a living trust cost in California?
The cost depends on the complexity of your estate and the attorney you work with. A basic revocable living trust drafted by a California estate planning attorney typically starts in the range of a few thousand dollars, with more involved plans running higher. At Seligson Law, you work directly with a senior attorney and receive a plan built around your specific situation.
