Avoiding Probate

Probate in California is slow, expensive, and public. The good news: almost all of it is avoidable with the right setup.

Key numbers

Probate is the legal process the court uses to validate your will and oversee distribution of your assets when you die. In California, it's especially bad. The state sets statutory fees for probate attorneys and executors — each can take roughly 4% of the gross estate value. Not the net value. If your estate includes a $2M home with a $1M mortgage, the fee is calculated on $2M. That's $80,000 to the attorney and $80,000 to the executor — just to transfer a house with $1M in equity. The process also becomes public record.

1. Revocable Living Trust

A revocable living trust holds your assets during your lifetime and transfers them to your beneficiaries directly at death — no court, no public record, no probate. You're the trustee while alive, so you maintain full control. You can change it at any time. Nothing about your finances becomes public. Assets flow to beneficiaries typically within weeks, not years.

This is the core of any probate avoidance strategy. A trust isn't just for the ultra-wealthy — it's for anyone who owns real estate or has assets they want transferred privately and efficiently.

2. Beneficiary Designations

Retirement accounts (IRAs, 401(k)s), life insurance, and accounts with POD (payable on death) or TOD (transfer on death) designations all pass directly to named beneficiaries outside of probate and outside of the trust. These designations override whatever your will or trust says, so keeping them current is critical. A divorced spouse still named on a life insurance policy will receive the benefit — regardless of a subsequent will.

Review beneficiary designations after every major life event: marriage, divorce, birth of a child, death of a named beneficiary.

3. Joint Tenancy with Right of Survivorship

Property owned jointly with right of survivorship passes automatically to the surviving owner at death, without probate. For a married couple, this is often how primary residences are titled. The risk: when the second spouse dies, the property goes back through probate unless it's already in a trust. Joint tenancy also creates potential gift tax complications and liability exposure. It's a useful tool, but not a substitute for a trust.

4. Transfer on Death (TOD) for Brokerage Accounts

Most brokerage firms allow you to add a TOD designation directly to your taxable investment account. The account passes to named beneficiaries at death without probate. It takes five minutes to add. There's no reason not to have this on every brokerage account you own.

The practical takeaway: get a revocable living trust set up with your estate attorney, make sure all assets are either held in the trust or have beneficiary/TOD designations, and review the whole setup every few years.