How to Avoid Probate in California

Estate planning in California isn’t just about deciding who gets what after you pass—it’s also about how efficiently those decisions are carried out. One of the most common obstacles for families managing a deceased loved one’s estate is the probate process. Lengthy, costly, and often emotionally draining, probate can delay the distribution of assets and reduce the value of the estate through administrative and legal fees. Fortunately, California offers several legal tools and strategies to bypass probate entirely. This article explains what probate is and explores effective ways to avoid it, helping you protect your estate and ease the burden on your beneficiaries.

What is Probate?

Probate is the legal procedure through which a deceased person’s estate is processed, debts are settled, and assets are distributed to heirs or beneficiaries. When someone dies with a valid will, the probate court ensures the will is legitimate and that its instructions are followed. If the person dies without a will (intestate), the court uses state inheritance laws to distribute the assets.

In California, the probate process can be especially cumbersome. It typically takes between 12 to 18 months and involves court appearances, public notices, and mandatory waiting periods. The process can be expensive too. Filing fees, administrative expenses, and attorney fees can cost thousands of dollars. In contested cases, litigation costs can quickly multiply. All these burdens make it beneficial to explore probate avoidance strategies well in advance.

How to Avoid Probate in California

1. Create a Revocable Living Trust

A revocable living trust is one of the most comprehensive and effective ways to avoid probate. This legal instrument allows you to transfer ownership of your assets—such as real estate, financial accounts, or personal property—into a trust that you control during your lifetime. You’ll appoint a successor trustee to manage and distribute the assets after your death according to your instructions.

Since the trust legally owns the assets—not you—they do not become part of your probate estate. The successor trustee can distribute them directly to the named beneficiaries without going through probate court. This method not only avoids delays but also keeps your estate matters private and can reduce administrative costs.

2. Use Joint Ownership With Right of Survivorship

Joint ownership is another way to avoid probate for certain types of property. If you co-own property with someone else—such as a spouse or partner—and the ownership includes a right of survivorship, that property automatically passes to the surviving owner when you die.

California recognizes two main types of joint ownership that avoid probate:

• Joint Tenancy with Right of Survivorship: Each co-owner holds an equal share. When one person dies, their share goes directly to the surviving owner(s) without court involvement.
  

• Community Property with Right of Survivorship: This form of ownership applies to spouses or registered domestic partners and also allows automatic transfer of property to the surviving partner.

Be cautious not to confuse joint ownership with “tenancy in common,” which does not avoid probate. In tenancy in common, each person owns a distinct share that must go through probate upon their death.

3. Add Payable-on-Death (POD) or Transfer-on-Death (TOD) Designations

California allows residents to designate beneficiaries for certain accounts and assets so they can be transferred outside of probate.

• Payable-on-Death Accounts: Bank accounts like savings or CDs can include a POD designation, allowing funds to go directly to the named beneficiary upon death. The account owner retains full control while alive.
  

• Transfer-on-Death Registration for Securities: Investment accounts, such as stocks and bonds, can be registered with a TOD beneficiary. At death, the named person can claim the account without probate.
  

• Transfer-on-Death Vehicle Registration: You can register your car in California with a TOD beneficiary. The title passes directly to the beneficiary upon your death without the need for court approval.
  

• Transfer-on-Death Deeds for Real Estate: California permits TOD deeds for certain types of real estate. This allows you to name a beneficiary for your home or property, which transfers to them upon your death. The deed can be revoked at any time while you’re still alive.
  

These tools are simple, cost-effective, and useful for bypassing probate on many types of financial and physical assets.

4. Take Advantage of the Small Estate Affidavit Process

If your estate qualifies as a "small estate" under California law, your heirs might be able to avoid probate even without any advanced planning. As of 2024, estates valued under $184,500 may be settled using a small estate affidavit.

This process allows heirs to collect assets—such as bank or investment accounts—by presenting a sworn statement and death certificate directly to the institution holding the assets. However, there are a few restrictions:

• It only applies to cash, securities, and personal property—not real estate.
  

• The total estate value must fall under the legal threshold.
  

• It cannot be used if formal probate proceedings have already begun.
  

For qualifying estates, this method can be a fast and low-cost alternative to traditional probate.

5. Be Cautious with Title Transfers and Gift Taxes

While titling assets jointly or assigning beneficiaries can be effective, it's important to avoid unintended tax consequences. Adding someone to the title of an asset—like a home or investment account—could be considered a taxable gift by the IRS. Additionally, it may affect your ability to refinance or sell the property during your lifetime.

A financial advisor or estate planning attorney can help you navigate these issues and recommend the best approach for your specific situation.

Avoiding probate in California is not only possible, but in many cases, highly advisable. The probate process can be lengthy, costly, and stressful for grieving families. Thankfully, with tools like living trusts, joint ownership, TOD/POD designations, and small estate affidavits, you can structure your estate plan to bypass probate entirely. Each method has its own rules, benefits, and potential drawbacks, so the key is to develop a tailored plan that fits your financial goals and family needs.

Whether your estate is modest or complex, taking proactive steps now can spare your loved ones unnecessary difficulty down the line. Working with an estate planning professional ensures your plan is legally sound and fully aligned with California law. By planning ahead, you not only protect your assets—you also provide peace of mind for the people who matter most.

Contact the Tunney Law Group today at (415) 367-5222 to schedule a consultation. We proudly serve clients throughout California.