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Many people create a revocable living trust assuming it will shield their assets from lawsuits, debts, or creditors. That belief is common, but wrong. While a revocable trust is one of the most effective tools for avoiding probate and streamlining estate administration, it does not offer any meaningful creditor protection during your lifetime. If asset protection is one of your goals, you’ll need to look beyond a basic revocable trust. What a Revocable Trust Does Well Revocable living trusts are excellent tools for organizing your estate. In California especially, they help avoid probate court—which can be time-consuming, expensive, and public. When used correctly, a revocable trust allows your chosen trustee to step in if you become incapacitated, and to distribute your assets smoothly after your death. Key benefits include : Avoiding probate and court oversight Centralizing control of your assets in one document Allowing updates at any time during your life Facilitating privacy and faster distribution for your heirs But while these features are powerful, they should not be confused with asset protection. A revocable trust is designed for management—not shielding—of wealth. Why a Revocable Trust Doesn’t Protect Against Creditors You Still Own and Control the Assets Even though the trust holds title to your property, you retain complete control. You can revoke the trust, change beneficiaries, withdraw assets, or even dissolve it entirely. Because of this, the law sees no distinction between you and your trust for purposes of liability. As a result: Any creditor with a judgment against you can collect from assets held in your revocable trust. If you are sued, those assets are fair game. If you file for bankruptcy, the assets must be listed and are part of your estate. The trust structure doesn’t create legal distance between you and your assets. It’s a tool for convenience and continuity—not protection. What Changes After Death? Upon your death, your revocable trust becomes irrevocable—meaning it can no longer be changed. At that point, some protections may begin to apply, but not immediately. In California, your creditors still have the right to pursue claims against your estate—including assets held in a revocable trust—for a limited period after your death.  Your successor trustee must pay valid debts before distributing assets to beneficiaries. If your trust includes spendthrift clauses or names a trustee with discretion over distributions, your beneficiaries may gain some protection from their creditors once they inherit. However, this applies to your heirs—not you. Better Tools for Asset Protection If you’re concerned about lawsuits, liability, or future claims, you need to add other layers to your planning. Options include: Irrevocable Trusts Unlike revocable trusts, irrevocable trusts transfer legal ownership of the assets to the trust. When properly structured, these assets are no longer yours—and therefore not reachable by your creditors. These are often used to: Remove life insurance proceeds from your estate Protect gifts to children or grandchildren Shield a portion of your estate from future claims Keep in mind: irrevocable trusts must be created before any claim or liability arises, and you must be willing to give up control over those assets. For many people, that’s a dealbreaker - they may need access to those funds during their lifetime. LLCs  For real estate, business interests, or investment portfolios, using a limited liability company (LLC) can help reduce personal liability. If a judgment is entered against you personally, the LLC structure can make it harder for creditors to access the company’s assets. Likewise, if the LLC is sued, your personal assets are generally protected from the company’s debts and obligations—these are known as its “internal protections.” Umbrella Liability Insurance One of the most overlooked—and cost-effective—asset protection tools is umbrella liability insurance. This type of policy adds an extra layer of protection on top of your existing home, auto, or rental property insurance. Coverage typically starts at $1 million and can go as high as $5 million or more, depending on your needs. Umbrella policies step in when a claim exceeds the limits of your underlying policies. For example, if you’re found liable for a serious car accident or someone is injured on your property, the umbrella policy can cover the excess damages and legal fees. Best of all, the cost is relatively low—often just a few hundred dollars a year—making it an affordable and effective first line of defense. The key takeaway : A revocable living trust is essential for estate organization and probate avoidance—but it’s not an asset protection plan. If protecting wealth from creditors is important to you, pair your trust with other strategies before a problem arises. Please contact me with any questions. About the Author Kendra Hampton has nearly 20 years of legal experience. She manages her own estate planning practice and has helped hundreds of clients create and update their trust, will, and powers of attorney. Kendra is committed to educating clients on the importance of estate planning and crafting personalized planning strategies.

Creating an estate plan is just the first step—it needs regular attention to stay effective. In California, the law and your personal circumstances can change quickly, making it important to keep your plan current. A well-maintained estate plan ensures your assets are protected, your wishes are followed, and your loved ones avoid unnecessary court delays or disputes. General Rule: Review Every 3–5 Years As a baseline, you should review your plan every three to five years. This helps ensure your documents stay current with changes in the law, tax rules, and other regulations that could affect your plan. Review Immediately After Major Life Events You should also revisit your estate plan right away if you experience: Marriage or Divorce Changes in marital status can affect inheritance rights, beneficiary designations, and community property rules. Birth or Adoption of a Child or Grandchild You may need to add guardianship provisions, create trusts for minors, or adjust distributions. Death or Incapacity of a Beneficiary or Fiduciary If a trustee, executor, or named beneficiary dies or becomes unable to serve, you may need to name replacements. Significant Changes in Assets Buying or selling real estate, starting or closing a business, or receiving a large inheritance can require updates to your trust and titling of assets. Relocation Moving into or out of California can change applicable laws for wills, trusts, and property taxes. Health Changes A diagnosis or decline in capacity—yours or a loved one’s—can mean revisiting powers of attorney and healthcare directives. Why Updates Matter in California Avoid Probate Surprises  – An outdated plan might not avoid court intervention if assets aren’t titled in your trust or beneficiaries are incorrect. Protect Against Unintended Beneficiaries  – Without updates, ex-spouses or deceased relatives could still be named. Maintain Tax Efficiency  – California-specific rules on property tax reassessment and federal estate tax thresholds change over time. Quick Maintenance Checklist Confirm your trust is funded and all titles are correct. Review beneficiary designations on retirement accounts, life insurance, and payable-on-death accounts. Verify your executor, trustees, and guardians are still the right choices. Update your advance healthcare directive and power of attorney if needed. Action Items: Put a calendar reminder to review your plan every three years. Schedule an earlier review if you have a major life or financial change. Please contact me with any questions. About the Author Kendra Hampton has nearly 20 years of legal experience. She manages her own estate planning practice and has helped hundreds of clients create and update their trust, will, and powers of attorney. Kendra is committed to educating clients on the importance of estate planning and crafting personalized planning strategies.

Many parents worry that their child’s inheritance could end up in the hands of a son- or daughter-in-law—especially if the marriage ends in divorce. In California, you can plan to keep assets in the family, but it requires the right legal tools and good communication with your child. California’s Community Property Rules California is a community property state. Assets acquired during marriage are generally divided 50/50 in a divorce. However, an inheritance given to one spouse is considered separate property—as long as it’s kept separate. Problems arise when: Inherited funds are deposited into joint accounts. Property is retitled in both spouses’ names. Inherited money is used for marital expenses without proper records. Once assets are commingled, courts may treat them as community property. Trust Planning to Protect the Inheritance A trust can help ensure the inheritance remains separate: Distribute assets to a trust for your child’s benefit rather than outright. Appoint your child as trustee (or co-trustee) with clear instructions to keep assets separate. Delay outright distributions so the inheritance remains in trust for life or until certain milestones. This structure can make it significantly harder for a divorcing spouse to claim the inheritance. Premarital and Postmarital Agreements Another way to protect the inheritance is through a premarital agreement (before marriage) or a postmarital agreement (after marriage). These contracts can: Confirm that any inheritance—past or future—will remain your child’s separate property. Outline how income or appreciation from the inheritance will be treated. Reduce the risk of costly disputes in a divorce. Key point: These agreements must meet strict legal requirements under California law to be enforceable. Your child and their spouse should each have independent legal counsel. Lifetime Gifting with Documentation If you gift assets during your lifetime: Provide a separate property gift letter stating the asset is intended only for your child. Keep the gift in an account in your child’s name alone. Avoid depositing the funds into joint marital accounts. Educating Your Child Even the best planning fails if your child doesn’t follow the rules. Encourage them to: Keep inherited property in a separate account. Avoid adding their spouse’s name to inherited assets. Consult a family law attorney before making transfers. Your Child’s Choice Even with strong legal protections, the decision to share an inheritance is ultimately your child’s. Under California law, they can voluntarily add a spouse’s name to property or deposit inherited funds into joint accounts—turning separate property into community property. Your estate plan preserves their right to choose, while making sure that choice is intentional. Key Takeaway : In California, you can protect your child’s inheritance from a future divorce by keeping it as separate property—using a trust, a premarital or postmarital agreement, clear documentation, and avoiding commingling with marital assets. These tools preserve your child’s right to choose whether to share that inheritance with a spouse. Please contact me with any questions. About the Author Kendra Hampton has nearly 20 years of legal experience. She manages her own estate planning practice and has helped hundreds of clients create and update their trust, will, and powers of attorney. Kendra is committed to educating clients on the importance of estate planning and crafting personalized planning strategies.

Creating an estate plan is a critical step—but your plan is only as effective as the information your trustee can access. If your trustee must spend hours—or even weeks—searching for bank accounts, investment details, or passwords, your carefully prepared documents are not as helpful. Think of your estate plan as a map. If it doesn’t clearly point to what you own and how to reach it, your trustee is left guessing. That means delays, frustration, and avoidable expenses. Keeping a clear, current list of your assets and digital access isn’t just about efficiency—it’s about giving your trustee the gift of time, clarity, and confidence. You’ll make their job easier, help your beneficiaries receive what you’ve intended, and reduce the emotional burden during a difficult time. 1. Create and Maintain a Master Asset List Your trustee needs a full picture of what you own. Keep a simple, comprehensive list that includes: Bank accounts  – account types, bank names, and last 4 digits Investment and retirement accounts  – brokerages, IRAs, 401(k)s, crypto wallets Real estate  – property addresses, mortgage or deed info Insurance policies  – life, disability, long-term care Business interests  – LLCs, partnerships, private equity High-value personal property  – jewelry, collectibles, vehicles Debts or liabilities  – loans, credit lines, mortgages 2. Securely Record Digital Access For many, most of your financial life is online. If your trustee can’t access your digital accounts, assets can be stuck in limbo for months. Maintain a secure log of: Passwords and usernames Email accounts linked to financial tools Two-factor authentication methods (e.g., mobile numbers, devices) Master password for your password manager (if used) Using a password manager is a good option—it stores everything in one secure place. Just make sure your trustee knows how to access it when needed. 3. Update Regularly Review and update once a year (tie it to tax time or a birthday) Add or remove assets as needed Update login credentials whenever passwords or platforms change Keep track of any new digital accounts or mobile apps you’re using to manage money Set a recurring reminder to review your records and keep everything fresh. 4.   How  and When to Share with Your Trustee You don’t need to hand over access today—but your trustee should know where the information is stored and how to unlock it if something happens. You have options: Provide sealed instructions with your estate plan documents Use a secure file or vault and give your trustee access credentials Store details in a fireproof safe, lockbox, or attorney’s office At a minimum, your trustee should know: Where to find your asset list and passwords Who to contact for access (attorney, spouse, digital executor) When they are authorized to use the information (e.g., only upon incapacity or death) 5. Tools That Can Help Consider using one or more of the following tools: Password managers  Online vaults  Secure spreadsheets or documents – protected with encryption and stored in the cloud Printed estate binders – if stored safely and updated regularly Whatever method you choose, the key is consistency and access. Conclusion A strong estate plan goes beyond legal documents. By maintaining a current list of your assets and access credentials, you make it easier for your trustee to act quickly, fulfill your wishes, and care for the people and causes that matter to you. Please contact me with any questions. About the Author Kendra Hampton has nearly 20 years of legal experience. She manages her own estate planning practice and has helped hundreds of clients create and update their trust, will, and powers of attorney. Kendra is committed to educating clients on the importance of estate planning and crafting personalized planning strategies.

When creating a trust, choosing the right trustee is one of the most important decisions you’ll make. Many of my clients initially want to name co-trustees—usually their adult children—as a way to be fair or encourage collaboration.  But in my experience, that well-intentioned approach often backfires. I recommend appointing one trustee. It’s almost always simpler, faster, and less risky. Let’s examine why co-trustees can create problems, when they might make sense, and how to structure the trust properly if you decide to go that route. The Case for a Solo Trustee 1. Clarity and Efficiency One trustee means streamlined administration. Decisions get made quicker, paperwork gets signed without delay, and no coordination is needed to execute everyday actions—like selling real estate, filing taxes, or distributing assets. 2. Lower Risk of Disagreement When multiple people must jointly agree on financial and legal decisions, even minor conflicts can escalate. If co-trustees don’t get along—or even just have different work styles—deadlocks can stall the entire trust. 3. Less Burden on the Family Trust administration can already be emotionally difficult—especially after the death of a loved one. Naming a single trustee helps avoid friction among siblings or other beneficiaries over how the trust is being managed. Common Reasons People Choose Co-Trustees – and Why They Backfire “I want to treat my children equally.” This may result in unequal effort, growing resentment, and family friction - not fairness. “Two heads are better than one.” Without clearly defined roles, co-trustees can stall decision-making rather than enhance it. “I don’t want to offend anyone” The trustee role is a job, not a reward. Choose the person most capable of carrying out your wishes, and explain your reasoning if needed.  “Our Children Get Along Well” Grief, money, and legal responsibilities can change even the best of relationships When Co-Trustees Might Make Sense While I usually recommend naming just one trustee, there are some situations where co-trustees can be the right choice—if the individuals are cooperative, and the trust is drafted with clear structure and flexibility. 1. Desire for Checks and Balances Some clients prefer to avoid placing too much authority in one person’s hands. Co-trustees can provide built-in accountability and oversight, even in modest estates. This can be reassuring in families where beneficiaries want transparency. 2. Sharing the Workload Trust administration can be time-consuming. Co-trustees can divide responsibilities. For example, one can handle financial and legal tasks while the other manages communication with beneficiaries or property upkeep. 3. Complementary Strengths and Perspectives Two trustees may bring different forms of value: financial acumen, legal knowledge, family insight, or emotional intelligence. Together, they may make better, more well-rounded decisions than either could alone. 4. Emotional Support Administering a trust, especially after the death of a parent, can be emotionally taxing. Co-trustees can support one another through difficult decisions and ease the burden during a time of grief. 5. Desire for Balanced Family Representation In blended families or families with complicated dynamics, co-trustees from different branches can help maintain neutrality and prevent accusations of favoritism—as long as they work well together. How to Make Co-Trustees Work If you do choose co-trustees, consider these safeguards: 1. Allow Independent Authority By default, co-trustees must act jointly. But, you can give the trustees the power to act independently. This allows either trustee to make decisions or sign documents without waiting on the other. 2. Clearly Define Roles Divide tasks based on skillsets—e.g., one manages finances, the other handles distributions. Avoid redundant effort and confusion. 3. Build in Tie-Breakers Include a clause specifying how disagreements are resolved: majority vote (for 3+ trustees), mediation, or final say by a neutral third party. 4. Add Flexibility to Resign or Remove Make it easy for a trustee to resign if it’s not working. Allow remaining trustee to remove a non-performing trustee with cause. 5. Appoint an Advisor A neutral third party (often an attorney or CPA) can serve as a trust protector, resolving disputes or stepping in if something goes wrong. Better Alternatives to Co-Trustees If your main concern is fairness or oversight, consider these effective and flexible structures: One Trustee with Named Successors  Instead of appointing co-trustees, name one primary trustee and list successor trustees in a clear order of priority. This keeps administration simple while still ensuring continuity if the first trustee becomes unavailable. This maintains efficiency and avoids conflict between trustees. Professional Trustee with Family Advisory Input Appoint a neutral, professional trustee to handle administration, while giving a trusted family member the right to be consulted or kept informed on key decisions. This balances expertise with family awareness—without creating shared control. Trust Protector Role Appoint a trust protector—typically a trusted advisor or attorney—with limited powers to monitor the trustee, break deadlocks, or replace the trustee if necessary. This adds oversight without requiring day-to-day involvement. Conclusion Appointing co-trustees may feel fair, but in practice, it often leads to inefficiency, conflict, or delays. In most cases, naming one capable, trustworthy individual as trustee is the wisest path. With the right planning, you can still ensure fairness, transparency, and continuity—without compromising the administration of your trust. Please contact me with any questions. About the Author Kendra Hampton has nearly 20 years of legal experience. She manages her own estate planning practice and has helped hundreds of clients create and update their trust, will, and powers of attorney. Kendra is committed to educating clients on the importance of estate planning and crafting personalized planning strategies.

Estate Planning Isn’t Just About Death — It’s About Incapacity, Too When most people think of estate planning, they picture dividing up their assets after death. But one of the most important reasons to plan isn’t about what happens when you die — it’s about what happens if you can’t make decisions while you’re still alive. Incapacity can strike at any age. A sudden illness, accident, or cognitive decline can leave you unable to manage your finances, make health care choices, or speak for yourself. Without a plan, your family may face delays, costly court proceedings, and painful disagreements. What Is Incapacity Planning? Incapacity planning is the part of your estate plan that prepares for the possibility that you become unable to make decisions. It ensures that: Someone you trust can pay your bills and manage your finances. Your health care choices are honored. Your family doesn’t have to go to court to take action on your behalf. It’s not just for the elderly. Accidents and medical emergencies can happen to anyone. The best time to plan is when you're healthy and clear-headed — not in a crisis. Key Documents for Incapacity Planning Durable Power of Attorney: This allows a trusted person (your “agent”) to handle financial and legal matters on your behalf. They can access your bank accounts, pay bills, manage investments, and even file taxes if needed. Advance Health Care Directive (or Living Will): This lets you spell out your medical wishes and name someone to make health decisions for you if you can't. It covers situations like life support, resuscitation, and end-of-life care.  Revocable Living Trust: If your assets are in a trust, the person you name as successor trustee can manage them for your benefit if you become incapacitated, without going through court. What Happens If You Don’t Plan? If you become incapacitated without these documents: Your family may need to petition the court for conservatorship or guardianship — a public, time-consuming, and expensive process. There may be confusion or conflict over who should make decisions, especially in blended families or among adult children. Your preferences for medical care may be unknown or ignored, leading to choices you wouldn’t have made for yourself. Examples A 40-year-old father suffers a stroke. Without a power of attorney, his spouse can’t access his business accounts to pay employees. A 29-year-old woman is in a coma after an accident. Her parents and partner disagree on care decisions, and no one has clear legal authority. An 82-year-old man with dementia doesn’t have an estate plan. His children must go to probate court to manage his finances — costing thousands and delaying help. Peace of Mind Starts with a Plan Incapacity planning is an act of protection. It keeps your family out of court. It prevents arguments. It ensures someone you trust is in charge, and that your values and choices are respected. You don’t need to have every answer today. Start by choosing people you trust and working with an estate planning attorney to put the right documents in place. Action Steps: Name someone you trust to handle finances and medical decisions. Complete a power of attorney and advance directive. Talk to your loved ones about your wishes. Fund your trust, if you have one, to avoid court delays. Review and update your plan every few years, or after major life events. Please contact me with any questions. About the Author Kendra Hampton has nearly 20 years of legal experience. She manages her own estate planning practice and has helped hundreds of clients create and update their trust, will, and powers of attorney. Kendra is committed to educating clients on the importance of estate planning and crafting personalized planning strategies.

Estate planning is one of the most responsible and loving acts you can do for your family — yet, according to a 2023 Caring.com  Will & Estate Planning survey, only 34% of Americans have an estate plan. Despite understanding the risks, many people delay it for years. The reason? It’s not about time, complexity, or money — it’s about mindset. In Psychology Today, psychologist Corey Wilks, Psy.D., breaks down the real reasons we procrastinate in his article, “Why We Procrastinate and How to Stop” (October 17, 2024). His insights are directly relevant to estate planning — a task that feels overwhelming, emotional, and easy to avoid.  The Emotional Weight of Estate Planning As Wilks explains, “Procrastination can often be a form of avoidance. It’s not that we don’t want to complete the task—it’s that we’re afraid of what might happen if we do.” We avoid estate planning not because we’re disorganized — but because it forces us to confront uncomfortable truths about mortality, responsibility, and our family dynamics. Estate planning activates fears we’d rather not face: What happens if I die suddenly? Will my family fight over money? Who will take care of my kids? What if I make a mistake? Rather than deal with those fears, we postpone. As Wilks puts it, “When we avoid taking action, we temporarily relieve the anxiety associated with the task. But in the long run, this avoidance only reinforces our fear and makes the task seem even more daunting.” That emotional avoidance becomes a habit — until something forces action, often under duress. Top Reasons We Delay — and the Reality Check 1. “I’m too young for this.” Even young adults need powers of attorney, health directives, and guardianship plans. Accidents don’t wait for retirement. 2. “I don’t have enough money to need an estate plan.” You don’t need millions to benefit from an estate plan. Almost everyone can benefit from a plan that protects assets and family.  3. “It’s too stressful to think about.” Exactly. And that’s why it’s so important. The stress now prevents far greater stress for your family later. How to Break Through Procrastination Wilks outlines three core strategies to move from intention to action: Focus on What Matters Most: Channel your energy into what truly moves the needle — and give yourself permission to release guilt over the rest. Take the Fear Head-On: Try a method called fear inoculation: break intimidating tasks into small, manageable steps and face them gradually. This approach builds confidence by showing you can handle discomfort one step at a time. Shift Your Perspective: Procrastination doesn’t mean you’re lazy — it may be a sign something deeper needs attention. Reframe it as a cue to realign your priorities or address hidden fears. When you approach it with curiosity instead of judgment, it becomes easier to move forward. Don’t wait for a crisis. Begin estate planning while you still have options, time, and clarity. Action Items: Write down your reason why estate planning matters to you. Schedule a call with an estate planning attorney this week. Talk to your family about your wishes. Don’t aim for perfection — just begin. One document, one decision, one small move is all it takes. Please contact me with any questions. About the Author Kendra Hampton has nearly 20 years of legal experience. She manages her own estate planning practice and has helped hundreds of clients create and update their trust, will, and powers of attorney. Kendra is committed to educating clients on the importance of estate planning and crafting personalized planning strategies.

We are in the middle of the largest generational wealth transfer in history. According to a 2022 report from Cerulli Associates, over the next 20 years, an estimated $84 trillion of wealth will pass down to younger generations. Despite the scale of this shift, many families remain unprepared. Estate planning is not only for the ultra-wealthy. It’s for anyone who wants to ensure their wishes are honored, their family is taken care of, and their legacy lives on. A Historic Transfer of Wealth According to Cerulli Associates’ report, roughly $53 trillion of the wealth transfer will come from the Baby Boomer generation, representing 63% of all transfers. Much of this wealth is held in homes, retirement accounts, small businesses, and family trusts. Without clear estate plans, these assets may not end up where they’re intended.  As Steve Randall noted in InvestmentNews , “Older generations are also not confident that Gen Z are able to manage the wealth transfer” (“ Is Gen Z ready for the multi-trillion-dollar wealth transfer?” , April 15, 2025). Estate planning serves as the bridge between the wealth you’ve built and the future you envision for the next generation. It’s not just about transferring assets—it’s about preparing heirs to receive them. The Cost of No Plan Failure to plan may lead to family conflict, court battles, and unexpected tax burdens. A 2023 Caring.com  survey found that only 34% of Americans have a will—and fewer have a comprehensive estate plan. Common consequences of poor or outdated planning include: Assets tied up in probate for months or years. Unintended beneficiaries receiving assets due to outdated documents. Estate taxes reducing inheritances. Heirs losing government benefits due to poorly structured inheritances. Family businesses collapsing without succession plans. How to Get Started with Estate Planning Estate planning is one of the most important steps you can take to protect your legacy and provide clarity for your loved ones. It doesn’t have to be overwhelming—start with these five key actions: 1- Establish a Will or Trust A will spells out who should receive your assets. A trust goes further—helping you avoid probate and control how and when your assets are distributed. 2- Appoint Trusted Decision-Makers Name individuals to act on your behalf through a power of attorney and health care proxy. These agents will make financial and medical decisions if you’re ever unable to do so. 3- Update Your Beneficiaries Double-check the beneficiary designations on your retirement accounts, life insurance, and investment accounts. These override your will and trust, so accuracy is critical. 4- Have Honest Conversations Talk with your family about your plans, values, and intentions. Open dialogue can reduce confusion, ease future tensions, and align expectations. 5- Build the Right Team Collaborate with an estate planning attorney, a CPA, and a financial advisor. Together, they’ll help ensure your plan is comprehensive, tax-efficient, and legally sound. Please contact me with any questions. About the Author Kendra Hampton has nearly 20 years of legal experience. She manages her own estate planning practice and has helped hundreds of clients create and update their trust, will, and powers of attorney. Kendra is committed to educating clients on the importance of estate planning and crafting personalized planning strategies.

C reating a revocable trust is an important step in estate planning. However, many people overlook an essential step: funding the trust. Without proper funding, a trust is empty and cannot serve its purpose. Here’s why funding your trust is important and how to do it correctly. What Does It Mean to Fund a Trust? Funding a trust means transferring ownership of your assets from your name to the trust’s name. This includes real estate, bank accounts, investments, and valuable personal property. If assets are not properly titled in the trust’s name, they may still go through probate, which can be time-consuming and costly. Steps to Fund Your Revocable Trust Real Estate : To transfer real property into your trust, you must create and record a new deed listing the trust as the owner. I help my clients with this essential step as long as the real estate is located in California.  Bank Accounts : Visit your bank in person or online to retitle accounts in the name of your trust or update beneficiary designations to the trust. Investment Accounts : Work with your financial advisor to retitle brokerage accounts or update beneficiary designations to the trust. Personal Property : Transfer valuable items, like jewelry, art, and collectibles, by creating an assignment of personal property document. Business Interests : If you own a business, update ownership documents to reflect the trust as the owner. Retirement Accounts and Life Insurance : While these assets are often left to individuals through beneficiary designations, you may want to name the trust as a contingent beneficiary. Homeowners Insurance : Contact your insurance provider to add the trust as an additional insured on your policy. This protects the property and ensures there are no coverage gaps. Common Mistakes to Avoid Delaying the Process: Some people establish a trust but fail to fund it, leaving assets unprotected if something unexpected happens. Incomplete Transfers: Some assets require additional paperwork or approvals. Ensure all necessary forms are completed. Forgetting New Assets: As you acquire new assets, remember to title them in the trust’s name. Action Items: List all assets and determine which need to be transferred. Contact financial institutions to update account titles. Ask your insurance provider to add the trust as an additional insured to your policy. Review and update your estate plan as your assets change. By taking these steps, you can ensure a smooth and efficient transition of your estate to your beneficiaries. Please contact me with any questions. About the Author Kendra Hampton has nearly 20 years of legal experience. She manages her own estate planning practice and has helped hundreds of clients create and update their trust, will, and powers of attorney. Kendra is committed to educating clients on the importance of estate planning and crafting personalized planning strategies.

If you’re planning your estate and wondering whether your children will owe inheritance tax in California, the short answer is no. California does not impose an inheritance tax or estate tax, making it one of the more tax-friendly states for passing on wealth. However, there are still important considerations, including federal estate taxes and other financial implications. No Inheritance Tax in California Unlike some states, California does not require heirs to pay taxes on inherited assets. Regardless of the amount, your children will not face any state-imposed inheritance tax when they receive their inheritance. Federal Estate Tax Considerations While California does not have its own estate tax, federal estate taxes can apply to large estates. In 2025, the federal estate tax exemption is $13.99 million per person ($27.98 for married couples). This means: If your estate is valued below this amount, no federal estate tax will be owed. If your estate is valued above this threshold, the excess amount is taxed at rates up to 40% before assets are distributed to heirs. Since this tax is imposed on the estate itself, your children will not be responsible for paying it directly—but a significant portion of the estate could be reduced before they receive their inheritance. Other Financial Implications for Heirs While inheritance tax is not an issue in California, there are other financial aspects to consider: Capital Gains Tax : If your children inherit assets like real estate or stocks, they likely will benefit from a step-up in basis to the asset’s value at the time of your passing. This can reduce capital gains taxes if they sell the asset later. Income Tax on Certain Assets : Inherited retirement accounts (like IRAs or 401(k)s) may be subject to income tax when withdrawn. Non-spouse beneficiaries typically must withdraw the full balance within 10 years, which can create a significant tax burden. Planning for the Future Even though California does not have an inheritance tax, estate planning is essential to ensure a smooth wealth transfer and minimize federal tax exposure. Consulting with an estate planning attorney or financial advisor can help you develop the best strategy for your family’s financial future. If you have a sizable estate or complex assets, take proactive steps now to ensure your beneficiaries receive the maximum benefit from their inheritance. Please contact me with any questions.