A Clear Explanation of Wills and Trusts

What’s inside the guide

• What a will actually does, including when it takes effect and what it cannot do on its own
• What a revocable living trust actually does, including how it avoids probate when it is properly funded
• A plain-English side-by-side of a will and a trust so you can see where they overlap and where they differ
• How to tell which document, or combination of documents, fits your situation
• Who honestly does not need a trust

Does a will avoid probate in California?

No. A will requires probate to take effect. Signing one does not avoid the process; it only tells the probate court what you want done with your estate. The only document that passes assets to your beneficiaries outside of probate is a revocable living trust, and only if you actually transfer your assets into it before you die.

Does a living trust reduce my taxes?

No. A revocable living trust does not reduce income tax, property tax, or estate tax on its own. California has no state estate tax and no state inheritance tax, so for most California families the reason to use a trust is avoiding probate, not saving on taxes.

Does everyone in California need a living trust?

Not everyone. California lets an estate with probate assets under the statutory small-estate threshold, currently $208,850, transfer personal property with a signed affidavit instead of opening a full probate case. For an estate that size, a will can be enough. Above that threshold, or with real property that does not qualify for a small-estate procedure, a will alone will not keep your family out of probate court.

For more on which document fits your situation, see our wills attorney page.