March 9, 2026
What Are the Benefits of Establishing a Living Trust?
The number one benefit of a living trust is avoiding probate. In California, estates above the probate threshold (currently about $206,000 in gross assets — not counting debt) go through probate without a trust. Probate typically costs around 5% of the gross estate and takes 18–24 months.
The top reasons people set up a trust
- Avoid probate — lengthy, expensive, and public.
- Privacy — a will becomes public record; a trust does not.
- Control — decide how and when assets are distributed.
- Incapacity planning — a successor trustee can step in without court involvement.
- Flexibility — a revocable trust can be changed while you're living and competent.
- Tax strategy — part of a broader plan for larger estates.
- Faster, easier administration after death.
January 29, 2026
When Is the Right Time to Estate Plan?
Most people wait too long to start estate planning — and pay for it later. The right time is probably sooner than you think. Estate planning isn't just for the wealthy or the nearly retired.
Waiting lets assets get tangled and options shrink. Gifting and charitable strategies work best with time, and without a plan families face slow, expensive, public probate. A plan puts a trusted person in charge if you can't handle finances or medical decisions, and written wishes reduce family conflict.
Update your plan when you experience
- Marriage or divorce
- A new child
- Buying property or a business
- A move to another state
- Health challenges
- New tax or estate laws
Core documents
- Revocable living trust
- Will with guardianship nomination
- Powers of attorney
- Healthcare directives
- Up-to-date beneficiary designations
Even a basic plan is better than none.
October 23, 2025 · Kristi Day
Charitable Giving Spotlight: Mountain Shadows
When creating a living trust, many clients want to leave a gift to a charity — but it can be hard to know which local organizations to trust. One I personally admire is Mountain Shadows.
Founded by two fathers in the late 1970s, Mountain Shadows Community Homes opened in 1980 on 5.5 acres in Escondido and has grown to serve more than 200 people through eight programs — including licensed homes in Escondido and San Marcos, intermediate-care homes in Riverside, and an Outreach day program for 100+ adults. The Mountain Shadows Foundation is a 501(c)(3) that supports this work through donations, gifts, and a Legacy Society.
Why include a charity in your trust?
A charitable gift may reduce your taxable estate and, when structured as a remainder interest, can produce income tax deductions. You can leave a percentage, a specific asset such as stock or real estate, or a named fund. Learn more at mtnshadows.org.
September 24, 2025 · Kristi Day
The Homeowners' Exemption
California's Homeowners' Exemption reduces the taxable value of your primary residence by $7,000 — typically about $70–$100 a year in savings. To claim it, file Form BOE-266 with your county assessor. The usual deadline is February 15 for the upcoming tax year (some counties allow late filing with a partial benefit). Once approved, it renews automatically while you live there.
September 17, 2025 · Kristi Day
AB Trust vs. Disclaimer Trust: What Is Best?
AB Trust: at the first spouse's death, the trust splits into Trust A (for the survivor) and Trust B (a bypass trust using the deceased spouse's estate tax exemption). Trust B's remainder goes to the deceased spouse's chosen beneficiaries — valuable in blended families. It guarantees the bypass trust is funded, but adds administration, separate tax filings, and less control for the survivor, and Trust B becomes irrevocable.
Disclaimer Trust: the surviving spouse decides after the first death whether to "disclaim" assets into a bypass trust. It's more flexible and simpler to draft, but relies on the survivor choosing to disclaim — in writing, irrevocably, within 9 months, and before accepting any benefit from those assets (California Probate Code §275–288 and IRC §2518).
Bottom line: an AB Trust offers certainty, especially with children from a prior relationship or larger estates; a Disclaimer Trust offers flexibility. With no California estate tax and portability of the federal exemption, simpler options may fit smaller estates. Always review your situation with a California estate planning attorney.
June 1, 2025
Do I Need to Notify My Homeowner's Insurance?
Yes. If you've transferred your home into a living trust, tell your insurer. If the trust isn't on the policy, you risk claim denials (for example after a wildfire or earthquake), liability gaps, cancellation, or lender problems.
- Notify your insurer promptly.
- Provide a certificate of trust (or the trust) and your recorded grant deed.
- Ask for the trust to be added as an additional insured — not "additional interest," which doesn't provide coverage. Example: "The Smith Family Revocable Living Trust, dated January 1, 2025, as additional insured."
- Review the endorsement — make sure every coverage, including earthquake (CEA), extends to the trust.
- Keep it current after amendments, refinances, or a change of insurer.
In California, a transfer to your revocable trust typically does not trigger a Prop 13 reassessment. If you're on the FAIR Plan, it should list the trust too.
