After years of building a nest egg, assets left outside your trust can send your family into a costly, public court process. At Price Law Firm, APC, we help Redlands families avoid these surprises by taking steps that protect property.
This article explains what happens to property left outside a revocable living trust, how to plug those gaps, and why a little prevention now can spare your loved ones later. The material below is educational, not legal advice.
Overview of Revocable Living Trusts and Funding
A revocable living trust lets you manage your assets while alive and direct their transfer after death without court oversight. Retitling property into the trust creates a private roadmap that bypasses probate.
Funding means changing legal ownership on deeds, account titles, or beneficiary forms so the trust, not you as an individual, shows up in the records. When every asset carries the trust label, your plan works smoothly; when items are missed, problems crop up.
The Consequences of Not Funding a Trust Completely
Leaving property outside the trust can trigger unintended fallout. First, assets still in your personal name often land in probate despite the existence of a trust.
California’s probation usually lasts months, sometimes longer, and court fees follow a sliding scale based on the estate’s value. Because court filings are public, anyone can peek at your family’s finances, which many clients find uncomfortable.
What Happens to Specific Types of Property Not in a Trust?
Different assets follow different rules, so let’s break them down individually.
Real Estate
Homes, rental units, or vacant lots outside the trust almost always require probate. California does allow a revocable transfer-on-death deed, yet that deed works best for simple, single-property situations. Families with blended ownership, minor heirs, or rental income often still choose a trust for better control.
Bank Accounts and Investments
Untitled checking, savings, and brokerage accounts usually freeze at death until a probate order arrives. Many banks will accept Payable-on-Death or Transfer-on-Death forms, allowing the money to move directly to named beneficiaries.
- Without POD or TOD instructions, the account enters probate.
- With updated forms, funds pass swiftly, yet the trust gains no say over how the recipient handles the money.
- Retitling the account to the trust keeps the asset under one master plan.
Work with each institution, since every bank or brokerage has its own paperwork.
Life Insurance and Retirement Accounts
These contracts pay directly to the people listed on the beneficiary page, so probate is usually avoided. Still, if the named person has died or cannot accept, the policy proceeds to revert to the estate and fall back into probate. Review beneficiary designations every few years and consider listing the trust as the backup choice so that trust terms guide any unexpected payouts.
Personal Property
Jewelry, art, vehicles, and heirlooms often lack formal titles, making them easy to overlook. A pour-over can scoop them into the trust later, yet that will pass through probate first. Detailed schedules or assignments added to the trust offer a quicker route and help prevent disputes over who gets what.
Strategies to Address Property Not Initially in a Trust
All is not lost if something slips through the cracks. California offers a few safety nets.
Pour-Over Will
This document says any asset still in your name at death should “pour over” into the trust. It acts like a broom, yet it still sweeps through the probate courtroom before reaching the trust bucket.
Heggstad Petition
When clear evidence shows you meant to fund the trust, your successor trustee may file a Heggstad Petition, asking the judge to confirm the asset belongs in the trust without full probate. Success can depend on the county and the proof of intent, such as a signed schedule listing the property.
Regular Trust Review and Updates
Life moves fast. Buying a house, opening a new account, or welcoming a grandchild should spark a quick review. A yearly “trust checkup” often catches unfunded assets before they snowball into bigger issues.
Intestate Succession: What Happens If There’s No Will?
If someone dies without a will, the state follows intestate succession rules. That legal ladder usually climbs in this order:
- Surviving spouse or registered domestic partner
- Children or their descendants
- Parents
- Siblings, then nieces and nephews
The court has no authority to reward close friends, charities, or an unmarried partner if they are not on that list. Family members sometimes fight over assets when the statutory plan collides with the decedent’s unwritten wishes.
Probate vs Trust Administration: Time, Cost, and Privacy
The table below compares common factors our clients weigh when deciding whether to rely on trust or take their chances with probate.
| Factor | Probate | Trust Administration |
| Average Duration | 9–18 months, sometimes longer | 3–6 months for most estates |
| Court Fees | Statutory percentage of gross value | None |
| Attorney Involvement | Mandatory filings and hearings | Attorney guidance is helpful, but often optional |
| Privacy Level | Public documents | Private records |
| Flexibility | Rigid statutory rules | Trust terms control distribution |
Protect Your Legacy: Contact Price Law Firm, APC Today
At Price Law Firm, APC, we have spent decades helping Redlands families shield their savings from avoidable court intervention. Whether you need to fund a new trust, clean up missed assets, or file a Heggstad Petition, our team stands ready to guide you. Feel free to call 909-328-7000 or visit our contact page to set up a free consultation. Let’s ensure every dollar you worked for reaches the people you care about, without a probate detour.
