Can Estate Planning Avoid Probate in San Diego

I recently had a client, Emily, come to me absolutely devastated. Her mother had passed away, leaving a handwritten codicil attempting to change beneficiaries on a relatively small estate. Unfortunately, the codicil wasn’t properly witnessed – a common mistake – and the court rejected it. Emily lost the opportunity to distribute her mother’s assets as intended, and the estate ended up costing over $30,000 in unnecessary probate fees and legal expenses. This is a heartbreaking scenario, and entirely preventable with proactive estate planning.

Probate in California is notoriously complex and expensive. While not every estate requires it, the threshold for triggering full probate is surprisingly low. For deaths occurring on or after April 1, 2025, assets exceeding $208,850 generally trigger full probate. However, per Probate Code § 13050, this calculation MUST exclude all California-registered vehicles (regardless of value), boats, and up to $20,875 in unpaid salary. Furthermore, AB 2016 now allows a simplified ‘Primary Residence’ petition for homes valued up to $750,000, significantly expanding probate shortcuts.

So, how do you avoid this? The most effective strategies center around ownership structures and beneficiary designations. A Revocable Living Trust is the gold standard. By titling assets – bank accounts, investment accounts, real estate – in the name of your trust, you effectively bypass probate. The trust document clearly defines who receives what, and a successor trustee can seamlessly distribute assets after your passing, without court intervention.

What if I Already Have a Will?

A Will is a vital document, but it doesn’t avoid probate; it merely directs how probate should proceed. The court still oversees the process, assesses the Will’s validity, pays debts and taxes, and distributes assets according to your instructions. A well-drafted Will can streamline the probate process, but it won’t eliminate the costs and delays.

What About Joint Ownership?

Joint ownership with Rights of Survivorship is another common probate avoidance tactic. Assets held jointly automatically pass to the surviving owner upon death. However, this approach lacks flexibility. It doesn’t account for changing circumstances, blended families, or complex wishes. Furthermore, it offers minimal protection from creditors or potential lawsuits.

How Does This Relate to Real Estate?

Real estate is often the largest asset in an estate, and careful planning is crucial. Under Proposition 19, heirs only keep a parent’s low property tax base if they move into the home as their primary residence within one year. Critically, for 2026, the tax-free ‘basis boost’ is capped at $1,044,586 over the original taxable value; any value exceeding this adjusted cap results in a partial reassessment even if the child moves in. We often utilize trust ownership for real estate to maintain control and maximize benefits.

As an Estate Planning Attorney and CPA with over 35 years of experience, I understand the intricate interplay between estate law and tax implications. The step-up in basis on inherited assets – a huge potential capital gains saver – is a primary reason to work with a professional who understands both sides of the equation. Proper valuation of assets is also critical, and my CPA background gives me a distinct advantage in this area.

What About Digital Assets?

Don’t overlook your digital footprint. Per the Revised Uniform Fiduciary Access to Digital Assets Act (RUFADAA), custodians like Apple or Google are legally prohibited from granting executors access to the content of emails or private messages without ‘explicit written direction’ in the will or trust. Metadata (the ‘catalog’) may be accessible, but the private content remains locked without this specific legal trigger. Include specific provisions in your estate plan addressing digital accounts, passwords, and access protocols.

What if I Become Incapacitated?

Estate planning isn’t just about what happens after death; it’s also about protecting yourself while you’re still alive. Advance Healthcare Directives – including a Durable Power of Attorney for finances and a Healthcare Proxy for medical decisions – are essential. Under both federal HIPAA and the California Confidentiality of Medical Information Act (CMIA), medical providers are strictly barred from sharing details with family unless a HIPAA Release is integrated into the Advance Healthcare Directive. Without this, a spouse may be forced to obtain an emergency court-ordered conservatorship just to speak with a surgeon.

What if I Own a Small Business?

If you own a business, LLC or corporation, the stakes are even higher. Under the Corporate Transparency Act (CTA), all non-exempt small businesses must maintain active BOI Reports with FinCEN. Upon the death of a member, the estate or successor has exactly 30 days from the date the estate is settled to file an updated report; failure to meet this window triggers non-waivable fines of $500 per day. Proper planning ensures business continuity and avoids unnecessary penalties.

What does a California probate court look for when interpreting testamentary intent?

In California, a last will and testament operates within a probate system that emphasizes intent, clarity, and procedural compliance. When properly drafted, a will does more than distribute property—it creates legally enforceable instructions that guide courts, fiduciaries, and beneficiaries through administration with fewer disputes and less uncertainty.

When a will is drafted with California probate review in mind, it becomes a stabilizing roadmap rather than a source of conflict. Clear intent, proper authority, and compliant execution protect both families and estates.

Controlling Legal Standards Governing California Estate and Asset Transfers

• Probate & Court Procedure:
  California Courts – Wills, Estates, and Probate
  The official judicial branch guide for navigating the probate process; it provides updated 2026 checklists for determining if an estate qualifies for “Summary Probate” under the $208,850 personal property limit or the $750,000 primary residence threshold (AB 2016).
• Property Tax Reassessment (Prop 19):
  California State Board of Equalization (Prop 19)
  The definitive resource for understanding the “Parent-to-Child” reassessment exclusion; it outlines the strict one-year deadline for heirs to move into an inherited home as their primary residence to maintain the parent’s low property tax base.
• Advance Healthcare Planning:
  California Attorney General – Advance Health Care Directive
  Provides the official California statutory form and legal guidelines for appointing a health care agent; this resource emphasizes the necessity of combining a medical power of attorney with a HIPAA release to ensure doctors can communicate with family during an emergency.
• Federal Estate & Gift Tax:
  IRS Estate Tax Guidelines
  The authoritative federal portal for estate and gift tax reporting; this page reflects the 2026 “OBBBA” permanent exemption of $15 million per person, effectively replacing the previously scheduled Tax Cuts and Jobs Act (TCJA) sunset.
• Digital Asset Access (RUFADAA):
  California RUFADAA Law (Probate Code §§ 870-884)
  Access the full statutory text of the Revised Uniform Fiduciary Access to Digital Assets Act; it explains why executors are legally barred from accessing encrypted accounts, email, or crypto-wallets unless the decedent provided explicit “prior consent” in their estate plan.