When planning your estate, understanding the difference between wills vs. trusts in California is key. An experienced attorney can explain the differences and help draft your estate plan based on your specific needs and desires for your belongings.

Hire a Will Lawyer to Help You Estate Plan

Paul V. L. Campo Attorney at Law has over 30 years of experience helping his California neighbors and community through all types of estate law cases. His goal with every new client is to listen to the full details of their situation and needs. He then provides honest legal advice about the right path forward.

As a Vista native, Paul takes great pride in his work and strives to make California’s complex legal process accessible to everyone.

California Will Laws

In 2024, approximately 17% of California residents were over the age of 65. In 2023, 294,729 people passed away in California. After a state resident passes on, their estate goes through the probate process. This is a court proceeding, usually done through the North County Regional Center for Vista residents, that deals with how the person’s assets are handled when they die. Probate applies to assets owned solely by the decedent without a beneficiary designation.

It’s vital to properly plan your estate, no matter your age, but especially for those who are older and have a variety of assets. These assets can include:

• Cash and bank accounts
• Real estate
• Retirement accounts
• Pets
• Businesses
• Collections, such as artwork or jewelry
• Intellectual property
• Investments
• Personal belongings

If you don’t have an estate plan before you die, your belongings will be handled according to California law. When faced with such unknown variables, it’s essential to hire a will lawyer to help outline how you want your assets to be dealt with after you pass.

The Difference Between a Will and a Trust

In any proper estate plan, the first step is creating a detailed will. A will outlines how you want your assets to be distributed or handled after you die. It can name specific beneficiaries for specific assets, such as your loved ones or charitable or religious organizations.

In California, in 2024, the average household income was $99,122, with the average home value being $734,700. These assets require detailed planning to make sure they go to the individuals you want.

A trust is a different type of legal document that can be included in an estate plan. Similar to a will, a trust details which specific assets will go to specific beneficiaries. However, not every asset needs to be placed in a trust, and there are different types of trusts that a person can create. Trusts are used to help certain assets avoid going through probate, as the assets will automatically transfer to the beneficiary upon your death.

This saves the beneficiary a lot of time and legal red tape that they otherwise may have had to go through to obtain the asset.

Different Types of Trusts in California

In California, there are two main types of trusts a person can create:

1. Revocable living trust. A person can place assets in this trust with a named beneficiary, allowing the assets to avoid the probate process. A revocable living trust can be modified or canceled at any point during your lifetime.
2. Irrevocable living trust. Similar to a revocable living trust, assets placed in an irrevocable living trust will automatically transfer to the beneficiary when you die, avoiding probate. However, once an irrevocable trust is created, it generally cannot be modified or canceled at any point.

While this may not seem ideal, people often choose this type of trust to help them qualify for certain Medicaid or Medi-Cal benefits. Your attorney can help explain if an irrevocable living trust is right for your unique needs.

FAQs

Q: What Is the Role of a Personal Representative During Probate?

A: The role of a personal representative during probate is to be in charge of administering the probate process for your estate. This role is granted to a trusted person named in your will or someone assigned by the court if there is no will. They’ll be responsible for filing your probate case with the court, gathering all of your assets, paying off any outstanding debts or taxes with those assets, and distributing the remaining assets according to your will.

Q: How Can an Irrevocable Living Trust Help You Qualify for Medicaid?

A: An irrevocable living trust can help you qualify for Medicaid by lowering your overall income and estate value. Once you place assets into an irrevocable living trust, those assets no longer legally belong to you. Instead, they legally belong to the trust. As long as you place assets into the trust 30 months before applying for nursing home Medicaid, those assets won’t be counted as part of your income.

Q: Does California Have an Estate Tax or Inheritance Tax?

A: California does not have an estate tax or inheritance tax. However, depending on the size of your estate, there is a federal estate tax that kicks in when you pass away. In 2026, any estate worth over $15 million must pay the federal estate tax. This tax is applied to your overall estate, not individual assets.

Q: What Happens in California If You Don’t Have a Will When You Die?

A: In California, if you don’t have a will when you die, your belongings will be handled according to California’s intestate succession laws. If you have a surviving spouse but no children, the spouse inherits everything. If you have a spouse and children, they may share your assets depending on whether the property is community or separate property. If there are no children or spouse, your estate will go to your parents, then siblings, and then distant relatives. This often goes against a person’s personal wishes, making it vital to create an estate plan.

Work With a Will Attorney to Help You Plan for Your Future

When it comes to your estate and what you leave behind for your loved ones, you don’t want to risk making any mistakes. Having an experienced lawyer helping you plan is key to staying legally compliant and making sure your wishes are respected when you can’t speak for yourself.

Contact Paul V. L. Campo Attorney at Law today to schedule a confidential consultation with Paul and learn more about wills vs. trusts in California and how our team can help.