An estate plan decides three things in advance: who manages your affairs if you cannot, who inherits what, and whether your family goes through probate to get there. In California the third question drives most of the work, because probate here is slow, public, and priced as a percentage of the gross estate rather than by the hours it takes. A funded living trust avoids it. Bay Legal, P.C. builds and updates estate plans for California families, business owners, and investors.
Definition: Estate planning is the process of arranging, in legally enforceable documents, how your assets and decisions are handled during incapacity and after death.
The prospect of completing my Estate Planning was extremely daunting but Sivendra was very patient with me and extremely professional. He has an amazing way of taking confusing legal jargon and translating it into simplified language that even I could understand.
This review reflects one client’s experience. Results depend on the facts and law of each individual case and do not guarantee or predict a similar outcome in your matter.
What does an estate plan actually contain?
Five documents do most of the work, and they cover different moments.
| Document | What it does | When it operates |
|---|---|---|
| Revocable living trust | Holds your assets and passes them to beneficiaries outside court | During life and after death |
| Pour-over will | Names guardians for minor children and catches assets left outside the trust | After death |
| Durable power of attorney | Lets a named agent handle finances and property if you cannot | During incapacity |
| Advance health care directive | States your medical wishes and names an agent to speak for you | During incapacity |
| Beneficiary designations | Pass retirement accounts and life insurance directly, outside both trust and probate | After death |
The last row is where plans most often fail. Beneficiary designations override your will and your trust. An old designation naming a former spouse on a retirement account will be honoured regardless of what your trust says, which is why reviewing them is part of building a plan rather than an afterthought. Trusts themselves are governed by Probate Code section 15200 and following.
Why does avoiding probate matter so much in California?
Because of how the fees are calculated. Under Probate Code section 10810, statutory compensation for the attorney is set as a percentage of the gross value of the estate — not the net, and not the time spent. The personal representative is entitled to the same amount again on the same schedule. Gross value means the mortgage on the house does not reduce the fee.
A home worth $1.5 million with a $900,000 mortgage is a $1.5 million estate for fee purposes. The statutory attorney fee and the representative’s fee are each calculated on that figure, and both come out of what the heirs receive. Add the court’s own timeline — California probate commonly runs well over a year — and the case for a funded trust makes itself.
Small estates are different. Probate Code section 13100 and following provides a simplified affidavit procedure for estates under a statutory threshold, avoiding full administration. Whether you qualify depends on the value and the type of assets. California Courts publishes self-help guidance on the process.
What happens if you die without a plan in California?
The state supplies one, and it is unlikely to match what you would have chosen. Probate Code section 6400 and following sets out intestate succession — a fixed order of relatives who inherit, applied regardless of your relationships with them. An unmarried partner takes nothing under it. Stepchildren you raised generally take nothing. Estranged relatives may take a great deal.
A judge also decides who raises your minor children, working from the evidence in front of them rather than from your intentions. And if incapacity comes before death, a court may appoint a conservator to manage your medical care and finances — a public proceeding, with ongoing court supervision, chosen by someone who never met you.
I entered into the meeting with limit knowledge and Sivendra Maraj spend time to understand my situation and explaining all of my options and answering all of my questions. Seeking legal services is an intimidating situation but he made this process as simple as possible while remaining thorough in his explanations.
This review reflects one client’s experience. Results depend on the facts and law of each individual case and do not guarantee or predict a similar outcome in your matter.
Who needs more than a basic plan?
- Business owners. Ownership and management have to transfer somewhere, and a plan that ignores the operating agreement or buy-sell terms will not work when it is needed.
- Blended families. Providing for a current spouse and for children from an earlier marriage pulls in opposite directions, and the default rules resolve that tension in ways most people would not choose.
- Families with a dependant who has disabilities. An outright inheritance can disqualify someone from means-tested benefits. A special needs trust is the standard answer and it has to be drafted before it is needed.
- Property in more than one state. Out-of-state real property can trigger a separate ancillary probate in that state, on top of California administration.
- Anyone whose plan predates a marriage, divorce, birth, death, or property purchase. A plan that no longer matches the family is often worse than none, because everyone relies on it.
What does estate planning cost in California?
Bay Legal, P.C. works on flat fees for estate planning, quoted before drafting begins, with tiers reflecting complexity. A straightforward plan for an individual or couple with a clear asset picture sits at the entry tier and typically includes a revocable living trust, a pour-over will, a financial power of attorney, an advance health care directive, and guidance on funding the trust. More complex arrangements — joint trusts with survivor structures, special needs provisions, asset protection, and deed transfers on multiple properties — sit above it. An ongoing subscription option covers unlimited updates for families and investors whose circumstances change often, and standalone updates are available hourly.
How does federal estate tax affect a California plan?
For most families, it does not. California imposes no state estate tax, and the federal exemption is high enough that the large majority of estates owe nothing. For 2026 the federal estate and gift tax exemption is $15 million per person, or $30 million for a married couple using portability, with a top rate of 40% above that. Federal legislation enacted in July 2025 removed the expiry that had been scheduled for the end of 2025 and set this as a permanent base, indexed for inflation from 2027. The Internal Revenue Service publishes the annual adjustment.
Where an estate approaches that threshold, planning shifts from probate avoidance toward gifting strategy, valuation, portability between spouses, and trust structures designed to keep future appreciation outside the taxable estate. The annual gift tax exclusion for 2026 is $19,000 per recipient, or $38,000 for a married couple electing gift-splitting.
Two practical points. Portability of a deceased spouse’s unused exemption is not automatic — it requires a timely federal filing even when no tax is due, and missing it forfeits the benefit. And exemption levels are set by legislation that changes, so a plan built around a particular figure should be reviewed when the law moves rather than assumed to keep working.
Explore Bay Legal’s estate planning services
- Living trusts — the core of most California plans
- Wills — guardianship nominations and pour-over provisions
- Powers of attorney — financial authority during incapacity
- Advance health care directives — medical wishes and a named agent
- Beneficiary designations — the transfers that override your trust
- Business succession planning — ownership and management transfer
- Special needs planning — providing without disqualifying
- Irrevocable trusts — asset protection and tax planning
- California probate — administration when there is no trust
Who handles estate planning at Bay Legal?
Sivendra Ganesh Maraj leads estate planning and probate. Rachael Berg handles trust administration disputes and probate litigation, and works with clients on trusts and estate plans. Both are named on the 2026 Northern California Super Lawyers Rising Stars list, alongside managing attorney Jayson R. Elliott and Clarence Olson.
Bay Legal, P.C. serves clients statewide from offices in Palo Alto and Los Angeles, including families across San Francisco and the wider Bay Area. Probate, when it is needed, is filed in the Superior Court of the county where the decedent lived — Santa Clara, San Mateo, Alameda, San Francisco, or Los Angeles among them. Consultations are conducted virtually where that suits the client, and the firm’s nine attorneys bring 180+ years of combined experience.
Frequently Asked Questions
What is the main advantage of a revocable living trust?
Assets held in a funded revocable living trust pass to your beneficiaries without probate. That keeps the transfer private, avoids the statutory fees calculated on the gross estate under Probate Code section 10810, and usually moves far faster than court administration. You keep full control during your lifetime and can amend or revoke it at any time.
How do I avoid probate in California?
Chiefly by funding a revocable living trust — transferring title to your assets into it, since an unfunded trust avoids nothing. Beneficiary designations on retirement accounts and life insurance pass outside probate already, and certain jointly held property transfers automatically. Small estates may qualify for the simplified affidavit procedure under Probate Code section 13100.
What happens if I die without a will or trust in California?
Probate Code section 6400 and following applies a fixed order of intestate succession, regardless of your relationships. An unmarried partner inherits nothing under it, and stepchildren generally do not either. A judge decides who raises your minor children. The estate goes through full probate administration with the statutory fee schedule applying.
What does a durable power of attorney do?
It authorises an agent you choose to manage your finances — paying bills, handling accounts, dealing with property — if you become unable to. Without one, your family may have to petition for a conservatorship, which is a public court proceeding with ongoing supervision and considerably more cost and delay.
Why do I need an advance health care directive?
It records your medical treatment wishes and names an agent to speak for you if you cannot. California’s statutory form is governed by Probate Code section 4600 and following. Without it, medical providers and family may disagree about your care at the worst possible moment, and resolving that can require a court.
What happens to my minor children if I have no plan?
A California family court judge decides who becomes their guardian, working from the evidence presented rather than from your wishes. A will lets you nominate a guardian, and while the court is not strictly bound by that nomination, it carries substantial weight. This is the single most common reason parents finally complete a plan.
How often should an estate plan be updated?
Whenever the family or the assets change materially — marriage, divorce, birth, death, a business sale, a property purchase, a move to another state — and periodically otherwise as the law shifts. A plan that no longer matches the family can be worse than no plan, because everyone relies on it until the moment it fails.
Will my estate owe federal estate tax?
Almost certainly not. For 2026 the federal exemption is $15 million per person and $30 million for a married couple using portability, and California imposes no state estate tax. Only estates above that threshold owe federal estate tax, at 40% on the excess. Legislation in July 2025 made this a permanent base rather than a figure scheduled to fall.
Do I need to worry about federal estate tax?
Probably not. For 2026 the federal exemption is $15 million per person, or $30 million for a married couple using portability, and California imposes no state estate tax. The One Big Beautiful Bill Act made that a permanent base rather than letting it sunset. Estates approaching the threshold need gifting, valuation, and trust planning; most families need probate avoidance instead.
Does Bay Legal handle estate planning remotely?
Yes. Consultations and most of the drafting process are conducted virtually where that suits the client, which matters for families spread across California or working around a Bay Area commute. Signing formalities that require witnessing or notarisation are arranged separately.
Related Questions
What does it mean to fund a trust?
Transferring ownership of your assets into the trust’s name — recording new deeds for real property, retitling accounts. An unfunded trust is a document that avoids nothing, and incomplete funding is the most common defect in California estate plans.
Is a will enough on its own?
It directs distribution and nominates guardians, but it does not avoid probate. A will is the instrument that takes your estate through court, not around it. Most California plans pair a trust with a pour-over will rather than relying on a will alone.
Can I write my own trust?
You can, and California recognises handwritten wills in defined circumstances. Whether it works is a different question, and the failure only becomes visible when you are no longer available to fix it. Funding errors and internal contradictions are the usual problems.
What is the difference between a revocable and an irrevocable trust?
A revocable trust can be amended or undone during your lifetime and its assets remain yours for tax and creditor purposes. An irrevocable trust generally cannot, which is precisely why it can offer asset protection and estate tax benefits a revocable trust cannot.
Do I need a lawyer, or will an online form do?
Forms produce documents. Whether those documents work depends on funding, on how they interact with your beneficiary designations and property titling, and on whether they fit California law. The cost difference is real; so is the difference in what happens when the plan is used.
Talk to a California estate planning attorney
Most people complete a plan after something prompts it — a diagnosis, a birth, a parent’s estate going through probate. Earlier is better and cheaper, and the first conversation establishes what you actually need rather than what a package assumes. To discuss an estate plan with a Bay Legal attorney, call the office nearest you or email intake.
He answered all my estate planning questions with clarity, compassion, and genuine care. Sivendra is very pleasant to talk to and took the time to ensure I felt heard and understood.
This review reflects one client’s experience. Results depend on the facts and law of each individual case and do not guarantee or predict a similar outcome in your matter.
Bay Legal, P.C. — serving California statewide
Northern California office
667 Lytton Ave Ste 3, Palo Alto, CA 94301
Southern California office
3211 Cahuenga Blvd W Ste 212, Los Angeles, CA 90068
Intake: intake@baylegal.com
Fax: (650) 963-0041
Website: https://baylegal.com