California Estate Planning Guide (2026)

A California estate plan needs to answer three different questions about the family home: who owns it now, how it will pass at death, and whether the transfer changes its property-tax assessment. A living trust can help with the transfer, but it does not resolve every ownership or tax issue.

A will doesn’t skip probate on its own, but it says who gets what and who’s in charge. See California will rules and costs, or what a living trust costs in California if you’d like to keep property out of probate.

For a married couple, community property also affects what each spouse can pass on. For someone helping an aging parent, financial authority, healthcare instructions, and current Medi-Cal rules may be more urgent than choosing a trust package. Start with the part of the plan your family needs to address.

Start with the deed and the property-tax bill

If your parents bought their home decades ago, the assessed value on the tax bill may be far below its market value. Those numbers answer different questions. The deed tells you how ownership is held; the tax record helps you understand the reassessment issue.

Under Proposition 19, an eligible child inheriting a qualifying family home generally needs to make it their principal residence to receive the parent-child exclusion. The old broad exclusion for transfers of rental and other investment property no longer applies. The California Board of Equalization explains the requirements.

For transfers between February 16, 2025 and February 15, 2027, the value limit uses the existing taxable value plus $1,044,586. For example, a taxable value of $200,000 produces a value limit of $1,244,586. This arithmetic alone does not establish eligibility: the residence, relationship, and filing requirements still apply. See the BOE’s current adjustment announcement.

What to check: if the plan is to keep the inherited home, ask who will live there and contact the county assessor about the homeowners’ exemption and exclusion claim. Do not wait for the estate to finish distributing property; the date of death can start the relevant clock. Our home-transfer guide links to the filing guidance.

Married couples: identify what belongs to each spouse

California generally treats property acquired during marriage while domiciled in the state as community property, subject to exceptions. Property owned before marriage, and property received by gift or inheritance, generally starts as separate property. The starting rules appear in Family Code §760 and Family Code §770.

That distinction can matter when parents want different beneficiaries, one spouse has children from a previous relationship, or an inherited account has been mixed with other funds. An account being in one person’s name does not, by itself, answer every question about its character.

What to bring: deeds, purchase dates, records of inherited assets, and any marital-property agreements. Ask the attorney which assets are community or separate property and how the proposed plan treats each spouse’s interest. If a spouse has already died, ask whether a spousal-property petition is available before assuming full probate is required.

A valuable home does not tell you which probate procedure applies

California’s ordinary probate attorney compensation follows a statutory schedule under Probate Code §10810. At a $1 million statutory calculation base, ordinary attorney compensation is $23,000. Personal-representative compensation and other expenses are separate. This is why the assets actually subject to administration matter more than a rough total of family wealth.

There are also simplified procedures. For deaths on or after April 1, 2025, the personal-property affidavit route uses a $208,850 ceiling under the applicable estate calculation. A separate court petition may cover a qualifying primary residence worth up to $750,000. Both have conditions and waiting periods; the personal-property affidavit cannot itself transfer a home. Check California Courts’ simplified-transfer guidance.

If you are administering an estate now, use our probate guide to sort the assets and procedures. If you are planning ahead, the useful question is which assets would need probate under their present ownership and beneficiary arrangements.

Choose a home-transfer plan, then check what it leaves uncovered

A California TOD deed may address a qualifying property, while a funded trust can coordinate management of additional assets. A TOD deed needs proper execution and timely recording; the statutory deadline is on or before 60 days after acknowledgment before a notary. Keeping a signed deed with the will is not enough. See Probate Code §5626 and the TOD deed guide.

When comparing trust services, ask whether the quote includes preparing and recording a deed, reviewing existing title, and instructions for the accounts. If Proposition 19 or marital-property questions need individual advice, confirm who will address them. The California trust-cost guide covers preparation options without treating a document price as the entire implementation cost.

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For a straightforward plan, you can review Trust & Will as an online preparation option. Ask separately about California deeds, funding, and any property-tax advice your circumstances require.

Use California’s healthcare form to make the conversation concrete

California’s statutory advance healthcare directive combines a place to name a healthcare agent with instructions about treatment preferences. The state provides the form in Probate Code §4701; using that exact form is optional. It includes execution instructions and special provisions for patients in skilled nursing facilities.

For a parent who is willing to discuss care but overwhelmed by legal terminology, start with who should speak for them and where the instructions will be kept. The California Attorney General’s advance-care resources can help frame that conversation. Financial authority needs its own review; naming a healthcare agent does not automatically authorize that person to manage bank accounts.

For local context, read our California report on older adults living alone, with county findings, the complete state table, charts and margins of error. Household patterns do not establish an individual’s health, support network or document needs.

Recheck older assumptions about Medi-Cal assets

California restored asset counting for certain Medi-Cal programs on January 1, 2026. DHCS currently lists a $130,000 countable-asset limit for one person through June 30, 2027, with exclusions and household or spousal rules that may change the calculation. This is not a limit on every Medi-Cal enrollee or on the total market value of everything a family owns.

If a parent may need nursing-home care, do not transfer assets based on an older “no asset limit” article. DHCS warns that certain below-market transfers can delay long-term-care coverage. Review the current Medi-Cal asset FAQs with the county office or a qualified adviser before changing ownership.

Before you choose an online service

Gather your existing documents, property records and questions about your family’s needs. Compare what the online package includes, what support is available in your state, and which tasks remain after purchase.

Compare online estate planning services and use the state-specific questions above to check the scope before paying. Where you need individualized advice, confirm that the service can address the issue.

By Randy Smith, founder of Family Estate Guide. Sources checked September 14, 2026. This guide provides educational information, not legal advice; it has not been reviewed by an attorney. Editorial standards.