California Changed the Probate Rules—Do You Still Need a Living Trust?

California recently made it easier for some families to transfer a deceased person's home without going through a full probate. That sounds like great news - and it can be! But it does not mean that a revocable living trust is no longer important for California homeowners.

In fact, the new rules are much narrower than the headlines may suggest.

What Changed?

For deaths occurring on or after April 1, 2025, California law provides a simplified court procedure that may be available when a decedent's primary residence in California has a gross value of $750,000 or less. Previously, the dollar limit for this type of procedure was much lower.

That $750,000 figure can sound significant, but there are some important limitations.

First, the new procedure applies to the decedent's primary residence, not every piece of real estate a person may own. A rental property, vacation home or other real property does not automatically qualify for the increased $750,000 limit.

Second, this is not the same thing as avoiding court altogether. It is a simplified court procedure, rather than the seamless transfer that can occur when property has been properly titled in a revocable trust.

What About Other Assets?

California also has a small-estate procedure for certain personal property. For deaths occurring on or after April 1, 2025, the current limit is $208,850. If the applicable requirements are satisfied, qualifying personal property may be collected without a full probate proceeding.

But determining whether an estate qualifies isn't always as simple as adding up bank balances. Some assets are included in determining the value of the probate estate and others are excluded.

For example, property already held in a living trust generally isn't part of the probate estate. Neither are many assets that pass automatically through joint ownership or directly to a named beneficiary.

So, Do I Still Need a Revocable Trust?

For many California homeowners, yes, a revocable trust can still serve an important purpose.

A properly prepared and funded trust is designed to keep trust assets out of probate in the first place. Rather than asking a court to transfer your home after your death—even through a simplified procedure—you establish during your lifetime who will have authority to manage and ultimately distribute the property.

A trust can also accomplish something that a probate shortcut cannot: planning for incapacity during your lifetime.

If you become unable to manage your financial affairs, your successor trustee can generally step in and manage the assets held in your trust according to its terms. Estate planning isn't just about what happens when you die. It is also about making sure someone you choose can take care of things for you if you are still living but unable to do so yourself.

A Trust Only Works If It Is Funded

There is another lesson hidden in these probate rules: signing a trust isn't enough.

Your home and other appropriate assets must actually be transferred into your trust. If you create a beautiful estate plan but leave significant property titled in your individual name, your family may still find itself dealing with probate or another court procedure after your death.

This is why trust funding should be an integral part of the estate-planning process—not an afterthought.

What About Estate Taxes?

Probate and estate taxes are two completely different issues.

For 2026, the federal estate and gift tax basic exclusion amount is $15 million per individual. That means federal estate tax is not an issue for the vast majority of families, although larger estates and certain married couples may require additional planning.

A revocable trust therefore isn't just—or even primarily—an estate-tax planning tool for most families. It can be valuable because it provides a structure for managing your property during incapacity and transferring it after your death.

The Bottom Line

California's expanded procedures may make settling certain smaller estates easier, and that is a welcome change. But “easier probate” and “avoiding probate” are not the same thing.

A thoughtfully prepared estate plan can allow you to decide who will manage your affairs if you become incapacitated, who will receive your property when you die, and how and when they will receive it.

And perhaps most importantly, it can make an already difficult time a little easier for the people you leave behind.

Lynn Girvin Law, P.C. assists individuals and families throughout Orange County with estate planning, revocable trusts, wills, incapacity planning and trust administration.