Your 2025 Guide to California Estate Planning

Developing a thoughtful estate plan can help protect your assets and make things easier for your next-of-kin in the event of your incapacitation or death. Whether you do it yourself or work with a professional, you'll first want to consider what you’d like to include in your plan.

What are the most important parts of an estate plan?

A well-structured estate plan specifies your wishes for asset distribution and medical decisions, but the documents in the plan itself can vary from person to person. Most estate plans include some combination of the following components.

Wills

A will (also known as a last will and testament) specifies how you want your assets to be distributed after death. You can also appoint someone you trust to carry out these wishes, or an "executor," as well as a guardian to care for your children if they’re still minors.

California law permits several types of wills, including handwritten (holographic), typewritten (attested), attorney-prepared, and statutory. Keep in mind that each will must be properly created and executed to be valid, with the requirements outlined in CA Probate (Prob.) Sections 6100 to 6390. 

The statutory will form generally works best for simple estates where you leave everything to your spouse or children. However, you shouldn't use this form if you: 

• Have assets worth more than $600,000
• Own business interests
• Want to create educational trusts
• Own out-of-state property
• Need tax planning
• Want to disinherit close family members

If you use California's statutory will form, be sure to read all the questions and answers on the first few pages before completing it. It's recommended that you don't add or cross out any words, so you should consult an attorney or work with LegalZoom if this form won't work for you. 

Living trusts

A living trust is an arrangement in which you place assets—like your home or investments—into the trust's ownership. You'll typically serve as your own trustee while you're alive, meaning you maintain control over these assets. 

You'll also name a successor trustee to manage and distribute your assets when you can no longer do so, whether because of incapacity or death. There are two types of living trusts:

• Revocable trusts. You maintain control over your assets and can modify the trust terms anytime. When you die, the trust becomes irrevocable, and your appointed trustee manages and distributes assets according to your instructions. Revocable trusts are typically the more common option for a majority of people. 
• Irrevocable trusts. Once created, you generally can't change this trust and must give up control over the assets placed in it. Irrevocable trusts are highly complex and difficult to set up, so consult an attorney if you're considering this option. 

Living trusts and last wills document how you want your assets handled, but a will requires probate court oversight to distribute assets. In comparison, a properly drafted and funded living trust generally bypasses California probate because you've already transferred asset ownership to the trust during your lifetime.  

If you work with LegalZoom to create a living trust, you'll get a "pour-over will" to account for any assets that aren't transferred to the trust. You'll also get help drafting the next estate planning document—financial powers of attorney.

Power of attorney

A power of attorney (POA) authorizes someone else—called an agent or attorney-in-fact—to handle financial and legal matters on your behalf. California has two statutory power of attorney forms, depending on which features you want to include. 

• General POA: Grants "broad and sweeping" authority to your agent to manage your affairs, from real estate to financial decisions. 
• Limited POA: Restricts your agent's powers to specific tasks, timeframes, or other instructions, which you can specify using the general POA statutory form or a custom document from a service like LegalZoom. 
• Durable POA: Remains effective even if you become incapacitated. You can make a durable POA "springing" (i.e., takes effect only upon incapacity), but note that California's statutory form does not include this feature.

It makes sense to create a POA so someone can handle your affairs when you can't. This might include paying bills, managing investments, or operating your business. Without one, your family might need to petition the court to request these authorities. 

Advance healthcare directive

An advance healthcare directive specifies your medical treatment preferences, including the following: 

• Instructions for your future medical care (also known as a living will)
• A medical proxy who can make decisions on your behalf if you're incapacitated, usually paired with a HIPAA authorization form

Additionally, California has an advance healthcare directive form listed in the state statute. 

Once completed (whether the statutory form or a custom one), you can submit it to the Secretary of State's Advance Health Care Directive Registry. This makes it available to your healthcare providers, public guardians, or legal representatives in California (upon request), though you can also send them each a copy. 

Beneficiary designations

When you create a will or trust, you'll name beneficiaries—the people or organizations who will inherit your assets. You can specify not just who receives what, but also any conditions for distribution (e.g., waiting until a beneficiary reaches a certain age). 

However, not all assets can be included in your will or trust, such as retirement accounts and life insurance policies. As part of your estate planning process, be sure to review the accounts that ask for your designated beneficiaries to ensure everything transfers according to your wishes.  

What's unique about California estate plans?

No two states govern estate planning the exact same way, and California has a few distinct laws worth considering. Still, keep in mind that each situation is unique, and you'll want to consult an estate planning attorney to understand how these laws might affect your specific situation. 

Community property

In California, married couples are presumed to share ownership of all assets acquired during marriage—like homes, vehicles, or bank accounts. This is known as community property, but if one spouse dies without a will (called dying "intestate"), California law (Prob. Sec. 6401) determines how their property is distributed. 

For community property, the surviving spouse receives the deceased spouse's half. For separate property (i.e., owned before marriage or inherited), the distribution depends on surviving family members: 

• If there are no children, parents, or siblings, the spouse receives everything.
• With one child, the spouse receives half of the separate property.
• With multiple children, the spouse receives one-third of the separate property.

Keep in mind the rules of intestate succession only apply to those who die without a will or trust. It's also worth noting that when community property passes to a surviving spouse, the entire property receives a "step-up" in basis to its current market value, potentially reducing capital gains taxes if the property is later sold.  

Estate taxes

An estate tax—sometimes called a death or inheritance tax—is a tax on transferred assets after someone dies. The good news is California has no state-level estate or inheritance taxes, regardless of how you structure your estate plan. 

However, federal estate taxes may apply. For 2025, the Internal Revenue Service (IRS) exempts estates valued up to $13,990,000 from estate taxes. You should also consider federal gift taxes—any gift exceeding $19,000 per person (including to your beneficiaries) in 2025 must be reported with Form 709. 

Proposition 19

Proposition 19, which took effect in February 2021, significantly changed how California handles property tax assessments when transferring real estate between parents and children. 

Previously, parents could transfer their primary residence and other properties to their children without changing the property tax base. Now, most properties will be reassessed to their current market value upon transfer, likely resulting in higher property taxes. 

There is an exception: If you transfer your primary residence to your child, and they move in within one year and use it as their primary residence, they may keep your property tax base. However, even this exception has limitations and specific requirements.

Given the complexities of Proposition 19's rules and tax calculations, it's recommended that you consult a California estate planning attorney to understand how these changes might affect your property transfers and overall estate plan. 

California probate

Probate is the court process that distributes certain assets and settles someone's debts after they die. Not all assets are subject to probate, including those placed in a living trust, life insurance proceeds, and jointly owned community property, among other non-probate assets. 

When someone dies, a family member or the executor named in the will petitions the court to start the probate process. In April 2025, California implemented new probate rules, too. Primary residences valued up to $750,000 can use a simplified probate process, while properties above this threshold or non-primary residences require full probate administration. 

The exact timeline of the probate process depends on the size and complexity of the estate, but it's fair to expect several months, if not a year, from start to finish. Assuming you hire an attorney for probate, be prepared to pay attorney fees set by state statute (Prob. Sec. 10810). 

Note that these figures are based on the gross value of assets that pass through probate: 

• 4% of the first $100,000
• 3% on the next $100,000
• 2% on the next $800,000
• 1% on the next $9 million
• 0.5% on the next $15 million
• Court-determined fees for estates over $25 million

California's probate process is known for being complicated and costly. While probate isn't always avoidable or negative, many residents use living trusts to help their beneficiaries minimize probate proceedings. 

When should you update your estate plan?

After creating your estate plan, you can modify it as needed to reflect changes in your preferences or circumstances (assuming you don't create an irrevocable living trust). Beyond personal choice, significant life changes should prompt a review of your estate plan. For instance:

• Marriage or divorce
• Birth or adoption of children
• Changes in property ownership
• Starting or selling a business
• Major health changes
• Moving to a different state

When updating your estate plan, be sure to follow any relevant legal requirements applicable to the documents you're modifying. You should also give copies of your updated documents to any parties who need them (e.g., your healthcare agent, successor trustee, or brokerage firm). 

How to start your estate plan today

As you can see, it's possible to create documents for your estate plan on your own. Whether you use California's statutory forms or find other templates, nothing says you absolutely need to work with an attorney to get started on your estate plan. 

That said, as your estate plan becomes more complex, it makes more sense to work with an attorney or trustworthy service like LegalZoom. Whether you're an individual or a couple, we can help you create the right estate plan for your needs—from wills and trusts to powers of attorney and healthcare directives—to protect what matters most. 

Plus, LegalZoom's estate planning bundles come with multiple components to cover different bases, with upfront, predictable pricing for each one. 

FAQs

How do I avoid probate in California?

You can't always avoid probate in California, but you can minimize its impact through careful planning. Living trusts are some of the more common strategies, and transfer-on-death (TOD) deeds might help in some cases. Above all, an estate planning attorney is the best person to help you develop an estate plan that meets your needs. 

What happens if you die without a will in California?

Without a will, your assets will be distributed according to California's intestate succession laws (found in the state's Probate Code). In other words, a probate court follows these laws to determine who receives what based on your closest surviving relatives, but this may not always align with your wishes. 

How much does estate planning cost in California?

It depends. While California's statutory forms are free, professional assistance (whether from an attorney or a reputable service like LegalZoom) ranges from a few hundred to several thousand dollars. It's best to ask any attorney or service you work with for an upfront overview of their fee structure to avoid hidden surprises.

Do you pay inheritance tax on a trust in California?

No, California has no inheritance or estate taxes. However, estates valued above the IRS thresholds (currently $13,990,000 in 2025) may owe federal estate tax, regardless of whether assets are held in a living trust.