Setting up a revocable living trust is a good way to manage your belongings and make things easier for your family later on. But many people think that once they sign the papers, everything is taken care of. That’s not always true, and it can cause big problems.
Probate is a legal process where the court checks a will, pays debts, and gives out what’s left. A revocable living trust works differently. It lets you control your things while you’re alive and names someone to handle them if you can’t. You can also change or cancel the trust whenever you want.
The important part most people miss is that you have to move your things into the trust. If you don’t, those things will still have to go through probate. This can cost your family time and money. Understanding how revocable living trusts and probate work is the key to properly funding your trust and ensuring your estate plan protects your loved ones from unnecessary hassle.
Think of a revocable living trust as a sturdy, clearly labeled moving box. The label lists who packs it (the grantor), who carries it (the trustee), and who finally opens it (the beneficiaries). California probate court is the shipping company that will deliver any items left loose on the driveway. You have two broad tasks:
A box that sits half empty does little good. When estates go through probate, they often face substantial fees for attorneys and personal representatives, which can significantly reduce the value passed on to heirs. Along with these costs, the process can drag on for many months, adding stress and uncertainty for families. This is why properly organizing and funding your estate is so important; it helps preserve more of your assets and spares your loved ones unnecessary delays and expenses.
When you buy real property after signing a trust, it’s important that the new deeds list the trust as the owner; otherwise, the property remains outside the trust. For joint accounts, naming the trust as the pay-on-death beneficiary can help avoid probate if the co-owner passes away first. Retirement plans and life insurance policies often require the trust to be named as the contingent beneficiary, especially when minor children or spend-thrift protections are involved. Missing these crucial steps can cause the asset to fall back into probate, which undermines one of the main benefits of having a living trust.
Many people who set up trusts do so for three practical reasons. First, trusts can save time—probate in California often takes 12-24 months, while simple trust administration can be completed within 6-12 months. Second, trusts help preserve privacy since probate petitions become part of the public record, but trusts remain confidential. High-profile estates show how public attention can create conflict. Third, trusts provide continuity during incapacity because, since the trust owns the assets, a successor trustee can begin paying bills as soon as a doctor confirms incapacity, without needing a court-appointed conservatorship.
However, these benefits depend entirely on properly funding the trust. The State Bar of California warns that “pour-over” wills, which transfer assets into the trust after death, do not avoid probate; they only catch what was missed.
Choosing a trust over a will is less about net worth and more about priorities. Homeowners, blended families, and business owners benefit most because they can spell out complex distributions while keeping operations running if they fall ill. A simple will might suffice for a young professional with few assets and no real property—though that changes the moment a condo closes.
Setting up a living trust with an experienced attorney typically begins with a thorough inventory of your assets and debts. You’ll also need to name a successor trustee; someone you trust to manage and distribute your estate if you become incapacitated or pass away. That person could be a family member, friend, or professional fiduciary. Just as important is outlining how your assets should be distributed, whether all at once, in stages based on age, or through longer-term protective trusts.
Once the documents are signed, the next phase, funding the trust, begins. This includes recording new property deeds, updating beneficiary forms for financial accounts, and notifying banks and brokers. Major life events like a marriage, divorce, or business sale should always trigger a review of your trust. Some professionals recommend revisiting your plan each tax season with a short checklist: Have you opened new accounts? Bought or sold property? Started an LLC? Small, consistent updates help keep your trust effective and prevent expensive surprises down the line.
A revocable living trust and probate share one common goal: transferring assets once you are gone. The difference lies in control, cost, and timing. A properly funded trust delivers the keys to your beneficiaries quickly and privately, while probate keeps them waiting in line at the courthouse window. The paperwork alone, however, is only half the battle; moving assets into the trust and keeping them there is the step many DIY plans miss.
At Ferguson Law Group, we help clients create estate plans that not only look good on paper but actually work when they’re needed most. If you’ve recently purchased property or aren’t sure whether your trust is fully funded, now is the time for a check-up. We guide families across California through building, funding, and maintaining revocable living trusts designed to keep their assets protected and their loved ones out of probate court.
Contact Ferguson Law Group to schedule a consultation and take the next step toward a well-structured, fully functional estate plan.
A revocable living trust holds your assets so they can be transferred directly to your beneficiaries without court involvement after your death.
Probate can be time-consuming, costly, and public, often taking months or even years to settle an estate.
Yes, a living trust avoids probate entirely for assets placed in it, while a will must go through the probate process in California.
