When a California resident dies with assets in their own name and no trust in place, those assets typically must pass through probate before they can be distributed to heirs. Probate is a court-supervised process administered by the Superior Court in the county where the decedent lived.
The process involves filing the will, inventorying assets, notifying creditors, paying debts and taxes, and ultimately distributing what remains to beneficiaries. In California, this process routinely takes 12 to 18 months. Complex estates or contested matters can take significantly longer.
The Cost of California Probate
California sets statutory fees for both the executor and the attorney handling the probate estate. These fees are calculated as a percentage of the gross value of the estate, meaning they are based on the estate’s total value before subtracting debts. On a $1 million estate, statutory fees alone can exceed $46,000. On a $2 million estate, they can approach $86,000. These costs come directly out of the estate before beneficiaries receive anything.
The Probate Threshold in California
Under California Probate Code § 13100, estates with a gross value above the statutory threshold generally require full probate administration. For deaths on or after April 1, 2025, that threshold is $208,850. Assets that exceed this value and are held in the decedent’s name alone, without a beneficiary designation or joint tenancy, are subject to the full probate process.
What the Threshold Calculation Includes
The threshold applies to the gross estate, not the net value. A home worth $900,000 with a $600,000 mortgage still counts as $900,000 for purposes of the threshold calculation. Assets held in a trust, accounts with named beneficiaries, and jointly held property are generally excluded from the calculation.
How a Living Trust Bypasses Probate
A properly funded revocable living trust transfers assets to beneficiaries at death without court involvement. When the grantor dies, the successor trustee takes over and handles the following without filing anything in probate court:
- Inventorying and valuing trust assets
- Notifying beneficiaries and creditors as required
- Paying outstanding debts and taxes from trust funds
- Distributing remaining assets according to the trust terms
Cases handled by a Roseville living trust lawyer often involve clients who lost a significant portion of a parent’s estate to probate costs and decided to put a different plan in place for their own families.
The Funding Requirement
A living trust only avoids probate for assets that are actually transferred into it. A trust that is created but never funded accomplishes nothing at death. Real estate must be retitled in the name of the trust. Bank accounts, investment accounts, and other assets must be transferred or have the trust named as beneficiary. This funding process requires attention to detail and should be revisited whenever new assets are acquired.
Yee Law Group Inc. assists Roseville-area clients with living trust creation and funding to put a plan in place that functions as intended when it is needed most.
Getting Started in Roseville
For families in Roseville who want to protect their assets from a lengthy and costly probate process, speaking with a Roseville living trust lawyer is the right starting point. Our team can assess your asset picture, explain your options, and draft and fund a trust that reflects your wishes and keeps your family out of court.