A Quick Overview of California Inheritance Law

Navigating California inheritance law can be overwhelming, especially when you’re grieving the loss of a loved one. I’ve worked with many families who believed they were prepared, only to find themselves surprised by details about probate, community property, or Proposition 19.

In this article, I’ll share the essentials of California inheritance law and practical steps you can take now to secure peace of mind for your family.

California Inheritance Law Basics

California law recognizes two main types of property in a marriage: community property and separate property. Community property generally includes most assets acquired by either spouse during the marriage, regardless of whose name is on the title. Separate property, by contrast, includes assets owned before marriage, received as a gift or inheritance during marriage, or earned after a legal separation.

This distinction is critical for estate planning. When a spouse passes away, the surviving spouse typically inherits the deceased’s share of community property. Separate property, however, may be distributed differently — often divided between the spouse, children, or even other relatives depending on family circumstances and whether there’s a valid will or trust. 

Recognizing the difference between community and separate property helps families understand which assets are subject to division or inheritance, and it can shape probate outcomes, tax obligations, and the rights of surviving spouses and heirs.

But inheritance isn’t just about who gets property. It’s also about how those assets are valued and taxed. While California does not have a state inheritance tax, very large estates may face federal estate tax. Two different tax systems may apply after a death: income-tax rules for a future sale (your cost basis) and local property-tax rules for your annual tax bill (the county’s assessed value).

Huge federal tax benefits exist for beneficiaries when property is held in a trust, because it generally receives what’s called a “step-up in basis,” meaning it is revalued at the fair market value on the date of death. This can spare heirs from paying huge capital gains taxes if the property has appreciated over time. This revaluation is about income tax when the home is sold and typically applies whether the home passes by will, probate, or a revocable living trust. But what if you don’t sell? That’s where understanding Proposition 19 comes in.

Proposition 19 has created challenges for many families because they are unaware that local property taxes can increase when a home is inherited. Here’s what you need to know: if you pass down your home, your child must live in it as their primary residence in order to keep your low property tax base. However, it’s one degree more complicated: if your heir already owns a home, the inherited property may still be reassessed at today’s market value, often leading to a sharp increase in annual property taxes. The result: in some cases, families are forced to sell, due to higher annual taxes. (See the California Board of Equalization’s documentation.)

But knowing how property is taxed is only half the battle. The bigger question many families face is what happens if there’s no will or trust at all.

What Happens If You Die Without a Will (Intestate Succession)

If you die without a will, California courts— not your wishes — decide who inherits your estate. This is called California intestate succession.

In practice, intestacy often creates heartbreak. I’ve seen children forced into court battles with step-parents, homes lost because of disputes, and assets tied up for years. Without a will or trust, the law may pass property to relatives you never intended to inherit.

And here’s something else important to note: a will alone may not keep you out of probate.

Inheritance Laws in California and the Reality of Probate

Probate is the court-supervised process of transferring property after death. Many people assume a will will prevent probate, but that’s not the case.

In California, if you own more than $208,850 in personal property, your estate may go through probate — even with a valid will.

Why does this matter?

• It’s public. Anyone can go online and view your will, your assets, and your beneficiaries’ addresses.
  
• It’s expensive. Probate fees (percentages set by law for lawyers and personal representatives) can easily climb to $30,000 and above.
  
• It’s slow. The process can take years.
  

For grieving families, probate adds unnecessary stress, expense, and delay at the very worst time. A living trust, on the other hand, can keep your estate private, save significant time and money, and give you control over how and when your assets are distributed.

How to Avoid Probate and Protect Your Legacy

So what exactly is a trust? A trust is a legal arrangement where one person (the “trustee”) holds and manages assets for the benefit of someone else (the “beneficiary”) according to instructions set by the person who created the trust (the “grantor” or “trustor”).

A living trust is one of the most powerful tools for avoiding probate and protecting your assets. Unlike a will, a trust:

• Keeps your estate private.
  
• Gives you control over how and when assets are distributed.
  
• Can eliminate the likelihood of lengthy court delays.
  

But setting up a trust once and never updating it can backfire. For that reason, I always recommend:

• Updating beneficiaries regularly. Old designations (for example, naming a parent who has since passed away) can force assets into court.
  
• Planning for incapacity with powers of attorney and advance health care directives.
  
• Reviewing your estate plan at least every four years to adjust for changes in tax laws, which tend to occur with changes in political administration, minor children turn 18, or after major life events.
  

When you create a trust, you’re not just securing property — you’re creating certainty and control. And those two ingredients bring peace of mind. But this kind of peace of mind comes at a cost.  It can be relatively complicated to plan your estate and be sure that your trust is properly funded, and that’s where a CA estate planning attorney comes in.

Why Work With an Attorney Instead of Going It Alone?

In today’s world, it’s tempting to turn to online forms or AI-generated documents. But estate planning is not one-size-fits-all. Every family is different, and every mistake has consequences.

I’ve seen families pay dearly for DIY documents that were incomplete, unenforceable, or simply wrong. Fixing those errors later is far more expensive — and stressful — than doing it right the first time.

As a CA estate planning attorney, I am held accountable to both my clients and the courts. I have an ethical duty to protect your interests, and I can tailor your estate plan to your unique circumstances. Online services can’t do that.

Yes, creating a trust takes effort. But compare that to a $30,000 probate fee, a two-year court battle, and the grief of leaving your loved ones with a legal mess, and you’ll see why it’s wise to plan ahead.

Inheritance Laws California FAQs

California Inheritance Law: Final Thoughts on Protecting Your Family’s Future

If there’s one lesson I’ve learned, it’s this: the best time to start estate planning is today. Whether you’re young and just starting out, preparing for marriage, or navigating widowhood, protecting your assets and your family should not wait.

I’m not just a California tax attorney with expertise in estate planning; I’ve walked this path personally. That’s why I am so passionate about making this process as easy and stress-free as possible for my clients.

Whether you’re building your first estate plan, updating it after a major life change, or trying to protect your heirs from unnecessary conflict, I want you to know you don’t have to do it alone. The lawyers at Gammon & Grange are here to help you put the right plan in place, so you can take control, avoid unnecessary costs, and secure a legacy that will bless your family.