How to Create a Living Trust in California
What Is a Living Trust in California?
A legal arrangement where you transfer assets into a trust during your lifetime, allowing them to pass to beneficiaries without probate.
In California, this document is officially known as a Revocable Living Trust and is governed by California Probate Code §§ 15000–18201.
California Requirements
| Requirement | Details |
|---|---|
| Minimum Age | 18 years old |
| Witnesses Required | 0 — California does not require witnesses for a living trust. However, the trust document should be signed by the trustor(s). |
| Notarization | Not required — Notarization is not legally required but is strongly recommended. A notarized trust is needed to transfer real estate into the trust. |
| Self-Proving Affidavit | Not applicable to living trusts. |
| Holographic (Handwritten) | Not allowed — Living trusts should be formally drafted and signed. |
| Governing Statute | California Probate Code §§ 15000–18201 |
How to Create a Living Trust in California: Step by Step
- 1
Inventory your assets
List all assets you want to place in the trust: real estate, bank accounts, investments, vehicles, and valuable personal property.
- 2
Choose your trustee and successor trustee
You'll typically serve as your own initial trustee. Name a successor trustee who will manage the trust if you become incapacitated or pass away.
- 3
Name your beneficiaries
Decide who will receive the trust assets and in what proportions. You can include specific gifts and contingent beneficiaries.
- 4
Draft the trust document
Create the trust document specifying all terms, conditions, and distribution instructions. California trusts must clearly identify the trust property, purpose, and beneficiaries.
- 5
Sign and notarize the trust
Sign the trust document and have it notarized, especially if you plan to transfer real estate into the trust.
- 6
Fund the trust
Transfer assets into the trust by changing titles and beneficiary designations. For California real estate, record a new deed transferring the property to the trust.
- 7
Create a pour-over will
Draft a pour-over will to catch any assets not transferred to the trust during your lifetime. These assets will pass through probate into the trust.
Living Trust Costs in California
What you can expect to pay for a living trust in California, depending on how you create it.
Common Mistakes When Creating a Living Trust in California
Creating a trust but never funding it
A trust only controls assets that are transferred into it. An unfunded trust provides no probate avoidance benefit — your assets will still go through probate.
Forgetting to update after acquiring new assets
Any asset acquired after creating the trust must be explicitly transferred into it. Set a reminder to review your trust annually.
Not considering property tax reassessment
Transferring real estate into a trust generally does not trigger property tax reassessment in California under Proposition 13, but transferring to beneficiaries after death may, depending on the relationship.
California-Specific Considerations
- •California has some of the highest probate costs in the country — attorney and executor fees are set by statute as a percentage of the estate. This makes living trusts especially valuable for California residents.
- •Transferring real estate into a living trust does not trigger property tax reassessment under Proposition 13.
- •California is a community property state. Married couples should consider whether to use a joint trust or separate trusts.
- •Trust certification (Cal. Prob. Code § 18100.5) allows you to provide a summary of trust terms to third parties without revealing the full trust document.
Start Planning Your Legacy
Sign up to be notified when our living trust feature launches and start organizing your estate today.
Get Started FreeLiving trust feature coming soon. Sign up to be notified.
Frequently Asked Questions About Living Trust in California
- Do I still need a will if I have a living trust?
- Yes. A pour-over will catches any assets not transferred into the trust and handles matters like naming guardians for minor children, which a trust cannot do.
- Does a living trust avoid estate taxes in California?
- A simple revocable living trust does not reduce estate taxes. However, California has no state estate tax. Federal estate taxes only apply to estates over $13.61 million (2024).
- Can I change my living trust after creating it?
- Yes. A revocable living trust can be amended or revoked at any time while you are alive and competent. You can change beneficiaries, trustees, or any terms.
- How much does probate cost in California?
- California probate fees are set by statute: 4% of the first $100,000, 3% of the next $100,000, 2% of the next $800,000, and so on. For a $500,000 estate, attorney and executor fees total about $26,000 combined.