Understanding Probate in California and How Estate Planning Can Help

What Is Probate?

Probate is the legal process by which a deceased person's estate is administered and distributed under court supervision. In California, probate ensures that a decedent’s assets are properly accounted for, debts and taxes are paid, and the remaining property is distributed according to the decedent’s will or, if there is no will, according to state law. This process is governed by the California Probate Code and is typically handled in the Superior Court of the county where the deceased person lived.

Why Does Probate Exist?

The primary purposes of probate are:

• Legal Validation of the Will – If a will exists, the court ensures it is legally valid and properly executed.

• Appointment of an Executor or Administrator – If a will names an executor, the court officially appoints them. If there is no will, the court will appoint an administrator to oversee the estate.

• Inventory and Appraisal of Assets – The court requires an inventory of the deceased person’s assets and, in some cases, an appraisal to determine their value.

• Payment of Debts and Taxes – The estate must settle any outstanding debts, including medical bills, taxes, and creditor claims before distributing assets to heirs or beneficiaries.

• Distribution of Assets – After debts and expenses are paid, the remaining assets are distributed according to the terms of the will or, if there is no will, per California’s intestacy laws.

The Challenges of Probate

While probate serves an important legal function, it has several drawbacks:

• Time-Consuming – The probate process in California typically takes anywhere from several months to over a year, sometimes longer for larger or contested estates.

• Costly – Probate involves court fees, attorney fees, executor fees, and appraisal costs, which can significantly reduce the value of the estate. California law sets statutory fees for attorneys and executors based on a percentage of the estate’s gross value, not its net value.

• Public Record – Probate proceedings are public, meaning that details about the estate, including its assets and beneficiaries, become part of the public record.

• Loss of Control – Since probate is a court-supervised process, the distribution of assets is subject to legal formalities and judicial oversight, which may not align with the decedent’s wishes.

How a Well-Structured Estate Plan Can Minimize Probate

A good estate plan can significantly reduce or even eliminate the need for probate, ensuring a smoother transition of assets to beneficiaries. Key estate planning tools include:

• Living Trusts – A properly funded revocable living trust allows assets to be transferred to beneficiaries without going through probate. Upon death, the successor trustee distributes the assets according to the trust terms without court involvement.

• Beneficiary Designations – Assets such as life insurance, retirement accounts (IRA, 401(k)), and payable-on-death (POD) or transfer-on-death (TOD) accounts pass directly to named beneficiaries, bypassing probate.

• Joint Ownership with Right of Survivorship – Property held in joint tenancy or as community property with right of survivorship automatically transfers to the surviving co-owner.

• Small Estate Affidavit – If the estate’s total value is below the California probate threshold (currently $184,500 as of 2024), heirs may use a simplified process to claim assets without full probate.

• Gifts During Lifetime – Transferring assets as gifts during one’s lifetime can reduce the size of the probate estate and ensure intended beneficiaries receive their inheritance sooner.

Conclusion

Probate can be a lengthy, expensive, and public process, but with proper estate planning, many of its burdens can be avoided. A well-drafted estate plan, including a living trust and other probate-avoidance strategies, ensures that assets are distributed efficiently and according to the wishes of the decedent. Consulting with an experienced estate planning attorney can help tailor a plan that meets your specific needs and protects your loved ones from the complexities of probate.

If you have questions or would like to begin planning your estate, contact our office to schedule a consultation.

The information provided here and elsewhere on this site is intended for general information and awareness, and does not constitute legal advice.