Trust or will: what California families should know

It is one of the first questions families ask: do we need a trust, or is a will enough? In California the answer usually comes down to one word: probate.

What a will does

A will states who receives your property, nominates who settles your estate and, for parents, nominates the guardians you would like for your minor children; the court approves any guardian appointment. It is an essential document. But property that passes under a will usually goes through probate unless a simplified procedure applies. Proper signing, with the witnesses the law requires, is essential, and we oversee it.

What a living trust does

A revocable living trust holds your property during your lifetime and names a successor trustee to manage and distribute it afterward. Because the property is titled in the name of the trustee, the successor trustee can generally act without formal probate for assets properly held in the trust. That usually means greater privacy than probate, although court proceedings may still be needed in some circumstances.

A trust also helps during your lifetime. If illness or injury leaves you unable to manage your affairs, your successor trustee can step in for the property in the trust, without asking a court to appoint a conservator.

Why most homeowners use both

• The trust holds your home, accounts and other assets.
• A short pour-over will directs assets left outside the trust to it, though those assets may need to pass through probate, and nominates guardians for minor children.
• Powers of attorney and a health care directive cover decisions the trust does not.

The step people skip

A trust avoids probate only for property properly held in it, so funding the trust matters as much as signing it. We guide our clients through that step as part of every plan.