California probate can be lengthy (12-18 months) and expensive (statutory fees for attorneys and executors are set by law). Here are strategies to help your estate avoid probate.
Revocable Living Trust: The most common probate-avoidance tool. Assets transferred to the trust pass directly to beneficiaries without court involvement. You maintain full control during your lifetime and can revoke or amend at any time.
Joint tenancy: Property held in joint tenancy automatically passes to the surviving owner(s) upon death. However, this can create gift tax issues and exposes the property to the co-owner's creditors.
Beneficiary designations: Retirement accounts (401(k), IRA), life insurance policies, and TOD (Transfer on Death) accounts pass directly to named beneficiaries outside of probate.
Small estate affidavit: Under Probate Code §13100, estates valued at $184,500 or less (excluding real property) can be transferred with a simple affidavit 40 days after death, without formal probate.
Community property with right of survivorship: Married couples can title property this way to ensure automatic transfer to the surviving spouse while maintaining the stepped-up tax basis.
For most Californians with any significant assets, a revocable living trust is the most effective and flexible approach to probate avoidance.