Trusts FAQ: Living Trusts and Real Estate in California

Estate planning in California often centers on revocable living trusts to avoid the lengthy and costly probate process, which can take 9–18 months (or longer in backlogged counties) and cost 4–7% of an estate's gross value in statutory fees alone. With the small estate threshold at approximately $208,850 (rising to ~$239,700 in some cases post-April adjustments) for non-real property and up to $750,000 for primary residences under simplified transfers, many homeowners use trusts to bypass court entirely—especially when real estate is involved.

These frequently asked questions address the top concerns we hear at MacLean Realty Group from clients in Rancho Santa Margarita, Orange County, and Southern California, including how revocable living trusts work, the importance of properly funding them with property (via recorded deeds), maintaining control during your lifetime, preserving Proposition 13 tax basis for heirs through parent-child exclusions, incapacity planning, and differences from wills or irrevocable trusts. Answers reflect current 2026 rules, including privacy benefits, no estate tax relief for basic revocable trusts (federal exemption high but CA conforms), and strategies to avoid common pitfalls like unfunded assets triggering probate.

For tailored advice on setting up or reviewing a trust—particularly when it holds real estate in high-value areas like Rancho Santa Margarita—or handling trust-related sales/transfers, contact Robert MacLean at MacLean Realty Group. We specialize in guiding clients through trust-held properties, seamless transitions, and related real estate matters. Reach out today or explore our California Probate FAQs for insights on what happens without a trust, and our Sellers FAQ for selling trust-owned homes.