Think trusts are only for the wealthy? Santa Barbara estate planning attorney Jillian Cardona breaks down who actually needs a trust in California — and why it’s not about how much you have.
I hear it almost every week: “I don’t think I need a trust — we’re not rich.”
I get why people think this. Trusts have a reputation as something for people with sprawling estates, vacation homes, and family offices. But here’s the truth I wish more California families knew: a trust isn’t about how much you have. It’s about how much you want to protect your family from — probate, court delays, and losing control over decisions that matter to you.
Let’s break down what actually determines whether a trust makes sense for your family.
It’s Not About Your Net Worth — It’s About What You Own
You don’t need millions to benefit from a trust. If you own a home in California — even with a mortgage — there’s a good chance your estate would need to go through probate without one. California probate is calculated on the gross value of what you own, not what you actually have left after debt. That $700,000 house with a $500,000 mortgage still counts as $700,000 toward whether your estate needs full probate.
If you have a home, retirement accounts, life insurance, or even just meaningful savings, probate is a real possibility — and probate in California is public, slow (often a year or more), and expensive for the family you leave behind.
It’s About Who Makes Decisions — and When
A will only takes effect after you die. A trust can also protect you while you’re alive — for example, if you become incapacitated and can’t make decisions for yourself. Without a trust (or at minimum a solid power of attorney), your family may need to go to court just to manage your finances or make decisions on your behalf.
It’s About Your Kids
If you have young children, this is often the piece that changes the conversation. A trust lets you build in real structure for how and when your children inherit — not a lump sum handed to an 18-year-old, but a plan you actually designed. It also works hand-in-hand with guardianship nominations, so the people you trust — not a judge who’s never met your family — are the ones raising your kids if something happens to you.
So Who Actually Needs a Trust?
In my experience, if any of these apply to you, it’s worth a real conversation:
- You own a home or any real property in California
- You have minor children
- You want to avoid your family going through probate court
- You want more control over how and when your assets pass to your kids
- You want a plan in place in case you become incapacitated, not just after you pass away
What If a Will Is Actually Enough for You?
Sometimes it is! Not every family needs a trust, and I’ll never tell you that you do if you don’t. Part of what I do in our first meeting — the Family Strategy Session — is walk you through the actual financial and practical differences between a will-based and trust-based plan for your specific family, so you can make an informed decision instead of guessing based on what you’ve heard.
The Bottom Line
“Rich” isn’t the qualifying factor for a trust. Owning a home, having kids, and wanting to protect your family from court involvement are. If you’re not sure which situation you’re in, that’s exactly what a Strategy Session is for.
Ready to find out what actually makes sense for your family?
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