If you own a home in California, does having a will mean your property will avoid probate? Not necessarily. In this video, Katherine covers five things California homeowners should know about wills, living trusts, probate, and inherited property.
1. Will vs. living trust. A will says who inherits your assets, but a home held in your individual name generally still goes through probate, although exceptions and simplified procedures may apply. A properly funded living trust can generally let your successor trustee manage and transfer the home without probate.
2. The home has to be transferred into the trust. Signing trust documents does not by itself put the house in the trust; the property generally needs to be transferred in, often through a recorded deed.
3. Revocable vs. irrevocable. A revocable living trust can generally be changed or canceled while you are legally competent and often becomes irrevocable at death. An irrevocable trust generally cannot be changed unilaterally and may restrict how trust property is managed, but it does not necessarily stop a trustee from selling; the trust terms and applicable law decide.
4. Pour-over wills. Some plans pair a living trust with a pour-over will that directs leftover assets into the trust after death, but those assets may still need to go through probate first.
5. A trust does not automatically prevent reassessment. California property tax reassessment depends on the nature of the transfer, the beneficiaries, and whether an exclusion applies; holding a home in a trust does not guarantee an exemption.
Do you know whether your home is actually titled in your living trust? If you are planning for, or dealing with, an inherited home in Orange County, reach out — Katherine is happy to help.
Disclaimer: Katherine is a Realtor, not a trust attorney. This video is for general educational purposes only and is not legal or tax advice. Estate planning, probate requirements, and property tax consequences vary by situation; consult a qualified California estate planning attorney and tax professional about your circumstances.