Quick Answer: California offers several legal ways to keep assets out of probate entirely, including a revocable living trust, joint tenancy or community property with right of survivorship, a transfer-on-death deed for real property (Probate Code Sections 5600-5696), payable-on-death designations on bank accounts, beneficiary designations on retirement and life insurance accounts, and the small estate affidavit for estates under the current $239,700 personal property threshold (Probate Code Section 13100). Each method works differently and fits different situations, there’s no single best option for everyone.
Why Avoiding Probate Matters
Probate in California typically takes 9 to 18 months and involves court fees, potential attorney costs, and a public record of the estate’s assets. None of that is required for property that passes outside probate through one of the mechanisms below. That doesn’t mean probate is always bad, some estates need the court’s oversight, but for many families it’s avoidable with planning done well before death.
8 Ways to Keep Assets Out of Probate
| Method | What It Covers | Key Requirement |
|---|---|---|
| Revocable living trust | Any assets titled in the trust’s name | Must actively retitle assets into the trust, an unfunded trust does nothing |
| Joint tenancy with right of survivorship | Real estate, bank accounts, vehicles held jointly | Surviving owner automatically takes full title, no court involved |
| Community property with right of survivorship | Real property owned by married couples or domestic partners | California-specific option, must be titled this way explicitly |
| Transfer-on-death deed | Real property specifically | Must be signed, notarized, and recorded within 60 days of execution (Probate Code Section 5600) |
| Payable-on-death (POD) designation | Bank and credit union accounts | Filed directly with the bank, no attorney needed |
| Beneficiary designations | Retirement accounts, life insurance, brokerage accounts | Must be kept updated after divorce, remarriage, or a beneficiary’s death |
| Small estate affidavit | Personal property under $239,700 gross value | 40-day waiting period after death required (Probate Code Section 13100) |
| Lifetime gifting | Any asset given away before death | Reduces the estate directly, but may have gift tax reporting implications |
The Method Most People Get Wrong: Joint Tenancy
Adding a child or relative as a joint tenant on a house feels like a quick fix, and it does avoid probate. But it also means that person owns half the property immediately, exposed to their creditors, their divorce, or their own estate planning mistakes, and it can complicate the stepped-up tax basis the property would otherwise receive at death. A living trust or transfer-on-death deed usually accomplishes the same probate-avoidance goal without those side effects.
The Transfer-on-Death Deed Has a Strict Deadline
California’s revocable transfer on death deed, authorized under Probate Code Sections 5600 through 5696, lets a homeowner name a beneficiary who receives the property automatically at death, without a trust. The catch: the deed must be signed, dated, notarized, and recorded within 60 days of execution, or it’s simply ineffective. This is a common way these deeds fail, someone signs it and puts it in a drawer instead of recording it at the county recorder’s office right away.
Small Estate Affidavit: Only Works Under the Threshold
If the deceased’s personal property (not real estate) totals under $239,700 in gross value, current for deaths on or after April 1, 2026, an heir can use a small estate affidavit under Probate Code Section 13100 instead of opening a full probate case. Note this covers gross value, not equity, a car worth $15,000 with a $12,000 loan still counts as $15,000 toward the limit. California also requires a 40-day waiting period after death before the affidavit can be used.
None of This Helps If Probate Is Already Underway
These strategies only work when set up before death. If you’re an heir to an estate that’s already in probate because these steps weren’t taken, waiting 9 to 18 months for the court process isn’t optional at that point. If you need funds sooner, a probate advance provides a portion of your expected inheritance now, no credit check, no monthly payments, repayment comes out of the estate at final distribution.
Frequently Asked Questions
Does a will avoid probate?
No, a will actually goes through probate, it just tells the court how to distribute assets. To avoid probate, assets need to pass through one of the mechanisms above instead.
What happens if a transfer-on-death deed isn’t recorded in time?
It’s simply ineffective. The property would need to go through probate or another transfer method instead, the 60-day recording deadline isn’t flexible.
Can retirement accounts avoid probate without any extra paperwork?
Only if a beneficiary designation is actually on file with the account provider. Without one, the account can end up in probate anyway, so it’s worth confirming these are current, not just assuming they exist.
Is a living trust better than a transfer-on-death deed?
It depends on the situation. A trust covers multiple asset types and offers more control, but requires actively funding it. A TOD deed is simpler and cheaper but only covers real property.
Does adding a joint tenant always avoid probate cleanly?
It avoids probate, but comes with real risks, exposure to the joint tenant’s creditors or divorce, and complications to the property’s tax basis, that other methods don’t carry.
Avoiding probate takes planning before death, not after. For more on managing an inheritance in California, visit ProbateLend.