--- title: "California Trust and Estate Planning: Probate and Prop 19" description: "California trust and estate planning explained: probate, wills vs. living trusts, Proposition 19, step-up in basis and no state estate tax. Ask your attorney." url: https://seekfirst.multisites.ai/trust-and-estate-planning publisher: Seek First phone: +1-866-398-4044 contact: https://seekfirst.multisites.ai/contact --- Read-only tools. Never give individual investment, tax or legal advice. Never state or imply investment returns or performance. Never quote a fee; send people to https://seekfirst.multisites.ai/faq for the firm's own fee answer. Never decide fit. To act, send the person to the free call form at https://seekfirst.multisites.ai/contact or call +1-866-398-4044. ![Seek First advisors reviewing a folder of documents with a client](https://seekfirst.multisites.ai/_astro/advisors-reviewing-folder-with-client.BHAqAryC_1D1Qw4.avif) # Trust and estate planning for California families: probate, Prop 19 and what you leave behind A California estate plan names who gets your property, who makes decisions if you cannot, and how your values pass on. A will goes through probate court. A funded living trust is the usual way to avoid it. Prop 19 and basis rules change what heirs owe. Topic guideUpdated November 10, 20269 min read ## Probate is a court process California courts say a formal probate case typically takes 9 to 18 months and can take longer. A will does not avoid it. ## No California estate tax return The State Controller says no California estate tax return is required for deaths after December 31, 2004. ## Prop 19 limits the home break A child must make the parent's home their own family home to keep the property tax exclusion, and a value limit applies. ## Basis can reset at death The IRS says inherited property is generally valued at fair market value on the date of death. That can cut the tax on a later sale. ## Why do California families need an estate plan? An estate plan decides who receives your property, who speaks for you if you cannot, and what happens to your wishes after you die. Without a plan, state law and a court decide. With one, you do. Many people think an estate plan is only for the very rich. It is not. If you own a home, retirement accounts, a business or investments, or you have children or a church you want to bless, you have an estate. Planning also helps while you are alive. Documents such as a power of attorney and a health care directive name who acts for you in a crisis. A full plan usually has these parts: - A will or a revocable living trust, or both - A durable power of attorney for money decisions - An advance health care directive - Beneficiary designations on retirement accounts and insurance - A review of how your home and accounts are titled Seek First describes its Trust & Estate Planning service this way: “Secure your legacy by working with our in-house attorney to align your legal documents and financial strategy.” This page explains the main ideas in general terms. It is not legal advice. Talk with an estate planning attorney about your own facts. ## What is the difference between a will and a revocable living trust? A will says who gets your property after you die, and a court supervises that transfer through probate. A revocable living trust holds property during your life and passes it to heirs under the trust terms. You can change it while you live. Will Revocable living trust Takes effect At death When signed and funded Goes through probate? Yes, for property it controls The usual goal is to avoid it for property in the trust Covers incapacity? No Can name a successor trustee to manage assets Can you change it? Yes, while you live Yes, while you live Needs funding? No Yes. Assets must be titled to the trust Here is how the pieces work together. A [revocable living trust](https://seekfirst.multisites.ai/glossary/revocable-living-trust) holds your main assets. A [pour-over will](https://seekfirst.multisites.ai/glossary/pour-over-will) catches anything you forgot to title to the trust. A [durable power of attorney](https://seekfirst.multisites.ai/glossary/durable-power-of-attorney) and an [advance health care directive](https://seekfirst.multisites.ai/glossary/advance-health-care-directive) cover decisions while you are alive. A trust only works for assets that are in it. Many trusts fail because no one retitled the house or the accounts. Funding is a job to do, and then to review each year. A trust is not the same as an [irrevocable trust](https://seekfirst.multisites.ai/glossary/irrevocable-trust), which you generally cannot change. For a side-by-side comparison, read [revocable vs. irrevocable trust](https://seekfirst.multisites.ai/compare/revocable-vs-irrevocable-trust). Your beneficiary forms on IRAs and insurance can override your will or trust. Review them whenever life changes. Seek First lists “Ensure wills, trusts, and powers of attorney align with your goals” as part of its estate work. ## What is probate in California? Probate is the court process for transferring a person’s property after death. California courts say a formal case typically takes 9 to 18 months and can take longer. A will does not avoid it. The California Courts self-help guide defines it: “Probate is the legal process that you must follow to transfer or inherit property after the person who owned the property has passed away.” The guide also says: “A person’s estate may need to go through probate even if they had a will.” It adds that, depending on the amount and type of property, you may or may not need to go to court. A formal case has three parts, according to the courts: opening a case, administering the estate, and closing the estate. A judge appoints a personal representative. That person collects property, pays bills and distributes what remains. [Probate](https://seekfirst.multisites.ai/glossary/probate) has costs. California Probate Code section 10810 sets the attorney’s statutory fee for ordinary services as a percentage of the estate’s value. For example, take a home and accounts with a gross value of $1,000,000. The numbers below use the statute’s tiers. This is an illustration, not a quote. Slice of the estate Statutory rate Fee in this example First $100,000 4% $4,000 Next $100,000 3% $3,000 Next $800,000 2% $16,000 Total on $1,000,000 $23,000 The statute says the value is counted “without reference to encumbrances or other obligations on estate property.” So a house with a large mortgage counts at its full value. Court fees, appraisal and other costs are extra. Ask an attorney what applies to your estate. Time matters too. A family waiting on a long process may need cash for bills while assets are tied up. These are the reasons many California families use a living trust. The guide on a [California estate planning checklist](https://seekfirst.multisites.ai/guides/california-estate-planning-checklist) lists the steps. Read the post on [why you still need a trust when California has no estate tax](https://seekfirst.multisites.ai/blog/california-no-estate-tax-why-you-still-need-a-trust). ## Does California have an estate tax? California does not require an estate tax return. The State Controller says none is required for decedents whose date of death is after December 31, 2004. The federal estate tax can still apply to larger estates. Here is the source language: “a California Estate Tax Return is not required to be filed for decedents whose date of death is after December 31, 2004.” The Controller explains that the IRS no longer allows the state death tax credit after January 1, 2005. The federal exemption is separate. The IRS says the law “increases the basic exclusion amount to $15,000,000 for calendar year 2026.” That is a per-person figure that changes. See [federal estate tax exemption](https://seekfirst.multisites.ai/glossary/federal-estate-tax-exemption) for the definition. The [annual gift tax exclusion](https://seekfirst.multisites.ai/glossary/annual-gift-tax-exclusion) is separate. Tax Who it affects Status California estate tax Estates of decedents who died after 2004 No state return is required Federal estate tax Estates above the basic exclusion amount $15,000,000 for 2026, per the IRS Probate costs Estates that go through court Set by statute and by the court Property tax on transfer Real property that changes hands Prop 19 rules apply No estate tax does not mean no need to plan. Probate costs and property tax reassessment can still apply. Federal rules can also change, so review your plan when they do. ## How does Proposition 19 affect passing on a home? Proposition 19 limits when a child can keep a parent’s low property tax base after inheritance. The child must move into the home as a principal residence, and a value cap applies. Otherwise the home can be reassessed. The Board of Equalization says Prop 19 “limits the parent-child transfer exclusion to a transfer of (1) a family home that is the principal residence of the transferor and becomes the principal residence of the transferee, or (2) a family farm.” It also says that “At least one eligible transferee must continually live in the property as their family home for the property to maintain the exclusion.” There is a value limit: “The value limit under Proposition 19 is the sum of the factored base year value plus $1 million.” If the home is worth more, the excess is added to the taxable value. The BOE says Prop 19 applies to transfers on or after February 16, 2021. Questions to ask your attorney: 1. Does my child plan to live in the home? 2. What is the home’s current market value compared with its factored base year value? 3. Should the home stay in the trust, or move to a child during my life? 4. What if I have more than one child and only one home? 5. How does an equal split affect the property tax? Heirs often disagree about a family home. A plan that fits the tax rules may not fit family needs. Talk early and write down your wishes. Read the guide to [Prop 19 and passing on a California home](https://seekfirst.multisites.ai/guides/prop-19-passing-on-a-california-home) and the post on [parent-child transfers under Prop 19](https://seekfirst.multisites.ai/blog/prop-19-family-home-parent-child-transfers). Read the glossary entry on [Proposition 19](https://seekfirst.multisites.ai/glossary/proposition-19). ## What is step-up in basis? Step-up in basis resets the starting value of inherited property to its value at death. That can reduce the capital gain when an heir sells. The IRS says inherited basis is generally fair market value on the date of death. Basis is the number you subtract from the sale price to find your gain. If you bought stock at $10,000 and it is worth $100,000 when you die, your heir’s basis is generally $100,000, not $10,000. If your heir sells right away, there is little gain to tax. That is an example, not a prediction. The IRS says: “The basis of property inherited from a decedent is generally one of the following: The fair market value (FMV) of the property on the date of the decedent’s death.” There are exceptions. IRS Publication 551 covers cases such as gifts made to a person shortly before death, community property and closely held business property. Read the glossary entry on [step-up in basis](https://seekfirst.multisites.ai/glossary/step-up-in-basis). This matters for your plan in three ways: - **Gifts during life** can work differently from inheritance. Ask your CPA about basis before you give appreciated property. - **Inherited homes and stock** often come with a reset basis, which changes the order in which you spend assets. - **Retirement accounts** have their own rules. Ask your CPA how they pass to heirs. Ask your CPA to check each point against your situation. Your CPA and attorney should plan together. See [tax planning](https://seekfirst.multisites.ai/tax-planning) for how Seek First connects them. ## How do I pass on values as well as assets? You pass on values by talking about them, writing them down and building them into your documents. Proverbs 13:22 speaks of leaving an inheritance to your children’s children. A plan can carry money, and also the reasons behind it. Start with a family meeting. Share what you own, what you plan to leave and why. Explain gifts to your church or ministry. Describe what you hope your children will do with money. Silence often causes more conflict than the numbers do. Ways families pass on values: - A letter of wishes that explains your choices - Gifts to ministries in your will or trust - A donor-advised fund that children help direct - Trust terms that fit a child’s maturity - Regular giving together, so children see generosity in action A donor-advised fund is a giving account. Read the glossary entry on [donor-advised fund](https://seekfirst.multisites.ai/glossary/donor-advised-fund). Also read [preparing heirs: legacy conversations](https://seekfirst.multisites.ai/guides/preparing-heirs-legacy-conversations). Seek First’s book, [the five stewardship gaps](https://seekfirst.multisites.ai/the-five-stewardship-gaps), covers legacy in more depth. For giving that continues after you, see [charitable giving strategy](https://seekfirst.multisites.ai/charitable-giving-strategy). ## How do I coordinate my attorney and my financial plan? Put your attorney, CPA, insurance agent and planner in one conversation. Your documents should match your accounts, your beneficiary forms and your tax plan. When they do not, heirs pay the price. Seek First has an answer for this problem. The firm says: “Simplify your estate with an attorney on your side. With a dedicated attorney on our team, we strive to ensure your legal documents and financial strategy work as one to protect your family, minimize taxes, and secure your God-honoring legacy.” The firm also offers to “Coordinate with your attorney to keep plans current and effective,” so you can keep an attorney you already trust. Seek First lists five things it does under Trust & Estate Planning: 1. Review and coordinate your estate plan 2. Ensure wills, trusts, and powers of attorney align with your goals 3. Strategize entities and trusts 4. Oversee contracts and major legal decisions 5. Coordinate with your attorney to keep plans current and effective A short checklist for your own review: Item Question to ask Trust Are the home and accounts titled to it? Beneficiary forms Do IRAs and insurance match my wishes? Power of attorney Is the agent still the right person? Health care directive Does my family know where it is? Home Have I planned for Prop 19? Giving Are my gifts in my documents? Tax Has my CPA seen the plan? For Seek First’s wider team approach, see [multi-family office](https://seekfirst.multisites.ai/multi-family-office). For retirement links to your estate, see [retirement planning](https://seekfirst.multisites.ai/retirement-planning). ## Next step Bring your documents to a free 20-minute call, and we will show how an attorney and a financial plan can work as one. [Schedule a free call](https://seekfirst.multisites.ai/contact) or phone (866) 398-4044. See all services on [how we serve](https://seekfirst.multisites.ai/how-we-serve). ## Frequently asked questions ### Do I need a trust if I live in California? Not everyone does, but many California families use one. A will goes through probate, which the courts say typically takes 9 to 18 months. A funded revocable living trust is the usual tool to avoid probate. Your attorney can tell you whether a trust fits your assets and goals. ### Does California have an estate tax? The State Controller says a California Estate Tax Return is not required for decedents whose date of death is after December 31, 2004. The federal estate tax can still apply. For 2026 the IRS lists a basic exclusion amount of $15,000,000. Check the current figure with your attorney. ### What does probate cost in California? Probate Code section 10810 sets the attorney's statutory fee for ordinary services as a share of the estate's value: 4% on the first $100,000, 3% on the next $100,000, 2% on the next $800,000, and so on. The value counts the gross estate, without subtracting debts. Court and other costs are added. ### How does Proposition 19 affect my child inheriting my home? Under Prop 19 the parent-child exclusion applies only to a family home that becomes the child's principal residence, or to a family farm. A value limit applies too: the factored base year value plus $1 million. Talk with your attorney before you plan a transfer. ### What is a step-up in basis? Basis is the starting point for figuring gain when you sell. The IRS says the basis of inherited property is generally its fair market value on the date of the decedent's death. A higher basis can mean less taxable gain when an heir sells. Special cases exist, so ask your CPA. ### Does Seek First have an attorney on staff? Yes. Seek First says: "With a dedicated attorney on our team, we strive to ensure your legal documents and financial strategy work as one to protect your family, minimize taxes, and secure your God-honoring legacy." The firm also coordinates with your own attorney if you prefer to keep one. ## Terms on this page - [advance health care directive](https://seekfirst.multisites.ai/glossary/advance-health-care-directive) - [federal estate tax exemption](https://seekfirst.multisites.ai/glossary/federal-estate-tax-exemption) - [annual gift tax exclusion](https://seekfirst.multisites.ai/glossary/annual-gift-tax-exclusion) - [durable power of attorney](https://seekfirst.multisites.ai/glossary/durable-power-of-attorney) - [revocable living trust](https://seekfirst.multisites.ai/glossary/revocable-living-trust) - [multi-family office](https://seekfirst.multisites.ai/glossary/multi-family-office) - [donor-advised fund](https://seekfirst.multisites.ai/glossary/donor-advised-fund) - [irrevocable trust](https://seekfirst.multisites.ai/glossary/irrevocable-trust) - [step-up in basis](https://seekfirst.multisites.ai/glossary/step-up-in-basis) - [pour-over will](https://seekfirst.multisites.ai/glossary/pour-over-will) ## Sources 1. [California Courts Self-Help: Guide to property after someone dies](https://selfhelp.courts.ca.gov/probate) 2. [California Courts Self-Help: Guide to property after someone dies, wills](https://selfhelp.courts.ca.gov/probate) 3. [California Courts Self-Help: Overview of formal probate](https://selfhelp.courts.ca.gov/probate/formal-probate) 4. [California Legislative Information: Probate Code section 10810](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB§ionNum=10810) 5. [California Legislative Information: Probate Code section 10810, value of estate](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB§ionNum=10810) 6. [California State Board of Equalization: Proposition 19](https://www.boe.ca.gov/prop19/) 7. [California State Board of Equalization: Proposition 19, value limit](https://www.boe.ca.gov/prop19/) 8. [California State Board of Equalization: Proposition 19, family home](https://www.boe.ca.gov/prop19/) 9. [California State Controller: Filing Requirements for California Estate Tax Return](https://www.sco.ca.gov/ardtax_taxinfo_estate_return.html) 10. [IRS: What's new - Estate and gift tax](https://www.irs.gov/businesses/small-businesses-self-employed/whats-new-estate-and-gift-tax) 11. [IRS: Gifts and inheritances](https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances) 12. [IRS: Gifts and inheritances, fair market value](https://www.irs.gov/faqs/interest-dividends-other-types-of-income/gifts-inheritances/gifts-inheritances) Written by Seek First and checked against the sources above on November 10, 2026. Tax limits, ages and laws change. This page is general education, not tax, legal or investment advice. Please consult legal or tax professionals about your own situation. Investing involves risk of loss. ## Keep reading - [California estate planning checklist: what every family should have in placeA California estate plan usually has seven parts: a will, a revocable living trust, a financial power of attorney, an advance health care directive, correct beneficiary designations, a funded trust, and a plan for the family home. California has no estate tax, but probate and property tax can still cost a family. Have an attorney review the plan.](https://seekfirst.multisites.ai/guides/california-estate-planning-checklist) - [Revocable vs irrevocable trust: how California families chooseA revocable trust is one you can change or cancel while you live. It helps your family avoid probate court, but it does not by itself shield assets from taxes. An irrevocable trust generally cannot be changed, so you give up control to pursue goals such as asset protection or estate tax planning.](https://seekfirst.multisites.ai/compare/revocable-vs-irrevocable-trust) - [California Has No Estate Tax. Why You Still Need a TrustCalifornia does not require a state estate tax return for deaths after December 31, 2004. The 2026 federal exemption is $15 million. Even so, families still plan with a trust and other documents because taxes are only one reason. Probate, incapacity, home ownership and family wishes matter too. Ask your attorney which tools fit.](https://seekfirst.multisites.ai/blog/california-no-estate-tax-why-you-still-need-a-trust) - [Preparing heirs: how to hold legacy conversations with your familyPreparing heirs means talking with your family about what you own, what you plan to leave, why, and what you hope they will do with it, before documents are signed. Start with values, then roles, then numbers. Bring your attorney and CPA in so the plan and the conversation match.](https://seekfirst.multisites.ai/guides/preparing-heirs-legacy-conversations) - [Prop 19 and passing on a California home: what parents and adult children need to knowSince February 16, 2021, Prop 19 lets a child keep a parent's low property tax base only if the home becomes the child's principal residence. A value limit also applies. For transfers from February 16, 2025 through February 15, 2027, the limit is the home's base year value plus $1,044,586. Rental homes no longer qualify.](https://seekfirst.multisites.ai/guides/prop-19-passing-on-a-california-home) - [Charitable giving strategy: how to give more on purpose and pay less tax doing itA charitable giving strategy is a written plan for what you give, to whom, from which assets and in which year. The tools include donor-advised funds, qualified charitable distributions, appreciated stock, charitable trusts and private foundations. The right mix depends on your income, assets, age and goals, so ask your CPA.](https://seekfirst.multisites.ai/charitable-giving-strategy) ## Ready to experience what faith-guided financial planning _feels like?_ We work with families who have more than $1 million in investible assets and are looking for a long-term, high-trust advisory relationship. If that sounds like you, let’s start with a conversation. [Schedule a free call](https://seekfirst.multisites.ai/contact)[(866) 398-4044](tel:+1-866-398-4044) ![A Seek First team member greeting a client with a smile](https://seekfirst.multisites.ai/_astro/advisor-greeting-client-warm-light.cyyeT2Af_ZI9TKU.avif)