California living trust laws govern how residents can create and manage trusts to hold their assets, potentially bypassing probate-a court-supervised process for transferring property after death. Understanding these laws can help residents determine who will control their assets, manage distributions to beneficiaries and preserve privacy. Trust creators, known as grantors, typically retain control over their property during their lifetime. After the grantor passes away, California law dictates how successor trustees manage and distribute trust assets per the trust’s terms.
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What Is a Living Trust in California?
A living trust in California is a legal arrangement that allows an individual-the grantor-to transfer ownership of their assets into a trust while still alive. Typically, the grantor appoints themselves as the trustee, maintaining authority to use or sell assets placed within the trust. When the grantor dies, a successor trustee distributes the trust’s assets to beneficiaries according to specified instructions.
Unlike wills, California living trusts generally operate outside of court oversight. Since trust documents remain private, this extends privacy to the distribution of the grantor’s estate. However, not all assets automatically qualify-retirement accounts and life insurance policies typically bypass trusts, transferring directly to beneficiaries.
Probate Process in California
Probate is the formal court process in California in which a deceased individual’s assets are distributed to heirs, debts are paid and taxes are settled. This process begins when the executor files a petition with the superior court in the county where the deceased lived . The court verifies the will’s authenticity, identifies assets and appraises property values…