Definition
A trust created by an individual (the grantor) during their lifetime that can be amended or revoked at any time. Assets held in a properly funded revocable trust avoid California probate, maintain privacy, and provide seamless incapacity management.
How a Revocable Living Trust Works
The grantor creates the trust document, transfers assets into it (funding), and serves as their own trustee — retaining full control during their lifetime. At death or incapacity, the successor trustee takes over seamlessly, without court involvement.
Key Benefits in California
- Avoids California probate — saves 12–24 months and 4–8% of estate value in fees
- Maintains privacy — probate is public record; trust administration is not
- Covers incapacity — successor trustee manages assets without a costly conservatorship proceeding
- Handles multi-state real estate — no ancillary probate required in each state
What It Does NOT Do
- Does not reduce income taxes (it is a grantor trust — transparent for tax purposes)
- Does not protect assets from your own creditors
- Does not reduce estate taxes by itself (though it can contain tax-planning provisions)
- Does not work if not properly funded
The Funding Requirement
A trust that is created but not funded does not avoid probate. Each property must be retitled into the trust's name. This requires a new deed for each piece of real estate, recorded with the county.
Disclaimer: This glossary entry is for general educational purposes only and does not constitute legal or tax advice. Laws change frequently and vary by individual circumstances. Consult a licensed California attorney or CPA for guidance on your specific situation.