Why You Should Put Your Real Estate in a Trust

Legal

Jan 13

For California homeowners, especially those with appreciating real estate, estate planning isn’t just about what happens someday — it’s about protecting your assets, your privacy, and your loved ones from unnecessary expense and delay. One of the most effective tools to do that is placing real estate into a revocable living trust.

Here’s why it’s often a smart move in California.

What Is Probate — and Why Do People Try to Avoid It?

Probate is the court-supervised process of distributing a deceased person’s assets. In California, probate can be:

Slow – commonly 9 to 18 months, sometimes longer
Expensive – statutory fees for attorneys and executors are based on the gross value of the estate, not equity
Public – probate filings are public record, including asset values and heirs

If you own real estate in California and don’t have a trust, your property will likely go through probate unless it qualifies for a narrow exemption.

How a Living Trust Avoids Probate

When real estate is titled in the name of a revocable living trust, the trust — not you personally — owns the property. Upon your death:

The property transfers directly to your named beneficiaries
No probate court is required
Your successor trustee manages the process privately and efficiently

In other words, the court never needs to get involved.

The Cost Advantage: Probate vs. Trust

California probate fees are set by law and can add up quickly. For example:

A $1,000,000 property could trigger over $23,000 in statutory attorney and executor fees
That figure doesn’t include court costs or extraordinary services

By contrast, creating a trust is typically a one-time, predictable expense — often far less than the cost of probate.

Faster Access for Your Heirs

Without probate, your beneficiaries can:

Sell, refinance, or occupy the property much sooner
Avoid months of uncertainty and court scheduling
Reduce emotional and financial stress during an already difficult time

This is especially important in hot or volatile real estate markets, where timing matters.

Privacy Matters — Especially With Real Estate

Probate records are public. That means:

Property addresses
Appraised values
Names of heirs

All become accessible to anyone who looks them up.

A trust keeps your estate private, protecting your family from unwanted attention, solicitation, or disputes.

Flexibility During Your Lifetime

A revocable living trust doesn’t lock you in. While you’re alive, you can:

Buy or sell property
Refinance
Change beneficiaries
Amend or revoke the trust entirely

For most homeowners, daily life doesn’t change — except for how the title is held.

Especially Important If You Own Multiple Properties

If you own:

Rental properties
A second home
Out-of-area or vacation property

A trust can help consolidate ownership and avoid multiple probate proceedings, which can otherwise be required when real estate is held in different jurisdictions.

What a Trust Does Not Do

It’s important to be clear:

A living trust does not reduce property taxes
It does not shield assets from creditors
It does not replace the need for proper insurance

It does, however, dramatically simplify the transfer of real estate after death.

The Bottom Line

For California homeowners, especially those with valuable or multiple properties, placing real estate into a living trust is often one of the smartest and most cost-effective estate-planning decisions you can make.

It helps your heirs avoid probate, saves time and money, preserves privacy, and ensures your real estate passes smoothly — without court interference.

If you’re considering selling, buying, or restructuring property ownership as part of your long-term plan, it’s always wise to coordinate with both an estate-planning attorney and a real estate professional who understands how trusts interact with title, financing, and resale.

Sean Timberlake