This article delves into use of trusts in California and their particular relevance in the current time. 

The following article is from Ian Woo (pictured below), attorney at law, Goyette, Ruano & Thompson. (More on the author below.) He discusses a very specific issue – trusts – for those living in the Californian state capital city of Sacramento, and across the state more broadly. 

The editors are pleased to share this content; the standard editorial disclaimers apply to views of guest writers. These articles are designed to foster conversations, so please enter them if you wish, or give suggestions and feedback. Email tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com

If you own a home or run a business in Sacramento, you may have wondered whether you really need a trust. It is a fair question. Estate planning often feels like something that can be put off for later, when life is less busy.

The truth is that if you own property in California, a trust is not just a helpful addition to your estate plan, it is one of the most effective tools available for protecting what you have built, avoiding unnecessary court costs, and keeping your affairs private. Without one, your family may face delays, conflicts, and thousands of dollars in probate fees.

Starting early provides more than peace of mind. It creates a solid foundation for managing your wealth throughout your lifetime. A properly structured trust can simplify future planning, reduce stress for your loved ones, and ensure that your assets are handled exactly as you intend, whether you are building wealth, running your business, or enjoying retirement.

The hidden cost of doing nothing
Let’s start with what happens if you do not have a trust when you pass away. In California, most property that is not held in a trust must go through probate. Probate is a court-supervised process that often takes a year or longer to complete. Even if you have a will, your estate will still need to go through probate for the court to validate the will and authorize the transfer of your assets.

Probate is not only slow, but also costly. Legal fees, court costs, and executor’s commissions can easily add up to tens of thousands of dollars, even for relatively modest estates. The process can also create practical challenges, such as delays in selling or transferring property, which may expose your estate to market volatility and liquidity issues.

Another drawback is that probate is a public proceeding. An inventory of your assets, the identity of your heirs, and the timeline of distributions all become part of the public record. For high net worth families, this combination of high property values and public disclosure can be especially risky. In some cases, the publicity around probate has drawn unwanted attention to grieving families, whether from opportunistic “advisors” or from estranged relatives.

Avoiding these delays, costs, and risks is one of the strongest reasons to consider creating a trust.

Privacy, control, and flexibility
One of the most overlooked benefits of a trust is the privacy it provides. Unlike a will, which becomes public record once it’s filed in probate court, the terms of a trust generally remain private. That means your financial information and family arrangements stay where they belong, namely between you, your attorney, and your chosen beneficiaries.

A living trust also gives you an incredible level of control. You decide who inherits what, when they receive it, and under what conditions. You can structure distributions to protect younger beneficiaries from poor financial decisions, provide for loved ones with special needs without jeopardizing government benefits, or ensure a family business passes seamlessly to the next generation. And because a revocable trust can be amended or even revoked during your lifetime, you can adapt it to life’s inevitable changes. That includes marriage, divorce, new children or grandchildren, the sale of a business, and all without starting from scratch.

Planning for the unexpected
Estate planning isn’t just about what happens after you’re gone. It’s also about ensuring that your affairs are managed if you become incapacitated. Without a trust, your family might need to go to court to establish a conservatorship just to pay your bills or manage your property. That process is expensive, time-consuming, and emotionally draining.

With a trust, you can name a successor trustee to step in immediately if you can’t manage your own affairs. They can pay your mortgage, maintain your investments, and ensure that your family is taken care of without court intervention. In my experience, clients find enormous peace of mind in knowing that there’s a clear, private plan in place for any eventuality.

Strategic tax and asset protection
While the state of California does not currently impose an estate tax, the federal estate tax still applies to larger estates. With careful planning, a trust can help reduce or even eliminate your estate’s exposure to these taxes. For example, certain irrevocable trusts can remove assets from your taxable estate entirely, while charitable trusts can allow you to support causes you care about and secure meaningful tax benefits at the same time.

It is also important to note that although California does not have its own estate tax, several other states do. If you are a California resident who owns real property or other assets in another state, those assets may be subject to that state’s estate tax laws when you pass away. Estate planning and proper trust structuring are therefore essential not only to minimize federal estate tax exposure but also to evaluate how state-specific taxes might affect what your beneficiaries ultimately inherit.

For high net worth individuals, especially those with investment properties, business holdings, or valuable collections, asset protection is another key consideration. Properly structured trusts can create a shield against creditors or lawsuits, but timing and execution are critical. This is where working with an experienced estate planning attorney becomes vital. An improperly designed trust, or one created too late, may not provide the protection you expect when it matters most.

Preventing family conflict
Grief can amplify tensions, even seemingly small ones. Unclear or outdated estate plans can lead to misunderstandings, or worse, full-blown legal disputes. A well-crafted trust provides clarity and minimizes opportunities for conflict.

You can be as specific as you like about how your assets should be divided, who should manage them, and under what terms. You can also plan for unique situations, such as blended families where competing interests might otherwise cause friction. Thoughtful planning now is one of the greatest gifts you can give your family.

Taking the first step
For many clients, the decision to create a trust begins with a conversation. It starts with a discussion of their assets, their family dynamics, and their long-term goals. From there, we explore the different types of trusts - revocable, irrevocable, special needs, charitable - and determine which options make the most sense for their unique situation.

An experienced estate planning attorney plays a critical role in this process. A skilled attorney can gather the necessary information, explain options clearly and concisely, and design a tailored plan that reflects the client’s wishes while complying with California law. The right guidance helps avoid unnecessary delays and costs, and ensures that the plan is flexible enough to adapt to life’s changes.

It is also essential to keep a trust properly funded. This means ensuring that your home, investments, and other assets are correctly titled in the name of the trust. Too many well-intentioned individuals create a trust but never transfer property into it, leaving their heirs to face the very probate they were trying to avoid. With the right attorney, both the creation and funding of the trust can be handled smoothly, giving clients confidence that their plan will work when it is needed most.

Why now matters
If you own real property in California, the time to plan is now. You’ve worked hard to build your life, your home, and your financial security. A trust ensures that those efforts are not undone by a court process, unnecessary taxes, or family disputes. Estate planning is not just about preparing legal documents. It is also about creating a clear, private, and enforceable plan that reflects your values and protects your legacy.

It is also about protecting the people you love. For families with minor children, estate planning provides a way to name guardians, set up financial safeguards, and ensure that children are cared for according to your wishes. In this way, planning is about much more than money. It is about peace of mind, security, and protecting the ones who matter most.

About the author
Ian Woo joined the Goyette, Ruano & Thompson team in January 2019, after he completed his Juris Doctorate from the University of the Pacific McGeorge School of Law in 2018. He had previously earned a bachelor’s degree in political science from the University of San Diego in 2014. Woo, originally born in San Francisco and raised in Orinda, California, located in the East Bay, brings his legal expertise to the firm.