You have spent decades building equity and watching your property grow. But have you made it just as easy for your loved ones to receive it? Without the right plan in place, even a straightforward inheritance can become a lengthy, costly ordeal. Here is what every California homeowner should have in order.
This article is not legal advice. It is meant to start a conversation and help you ask the right questions when you sit down with your estate planning attorney. Think of it as a checklist for legacy.
1. Have a Valid, Updated Will
A will is your foundation. Without one, California’s intestate succession laws decide who gets your property — and it may not reflect your wishes. More importantly, dying without clear directives almost always means probate court: a public, slow process that can take 12–18 months and consume thousands in fees. Review your will after any major life change — a divorce, a death in the family, or a new property purchase.
2. Set Up a Revocable Living Trust
A living trust is the most effective tool for passing California real estate quickly and privately — completely outside of probate. You remain in full control during your lifetime. When you pass, your successor trustee can act immediately without court involvement.
One critical step many people miss: the property must be formally re-titled into the name of the trust. A trust that does not hold title to your home cannot protect it from probate.
3. Make Sure Your Trustee Can Act
Naming a trustee is not enough — they need to be ready and able when the time comes. Ask yourself:
- Have you named a successor trustee as a backup?
- Does your trustee know they have been chosen — and where the documents are?
- Is your trustee reasonably younger and geographically accessible?
Also consider a Durable Power of Attorney, which allows someone to manage your financial affairs if you become incapacitated — even before death.
4. Understand Proposition 19
California’s Prop 19 (2021) significantly narrowed the parent-to-child property tax exclusion. Today, your child must make the inherited home their primary residence within one year to keep your Prop 13 tax base. If they do not, the property is fully reassessed at current market value — potentially tripling or quadrupling the tax bill. Discuss this with your estate planning attorney and CPA before making any decisions about how your property is titled.
5. Talk to Your Family — and Your Agent
The families who navigate inheritance most smoothly are the ones who planned ahead together. Let your trustee know they have been named. Discuss with heirs whether they plan to sell, rent, or keep the property — co-ownership without a shared vision is a common source of conflict.
And loop in your real estate agent early. Knowing a property may be sold or transferred allows for better timing, pricing strategy, and a much smoother process for everyone involved.
This article is for informational purposes only and does not constitute legal, tax, or financial advice.
Please consult a licensed estate planning attorney and qualified tax advisor for guidance specific to your situation.
