Does a Living Trust Need to be Recorded in California?

Living trusts are an increasingly popular estate planning tool in California. They allow individuals to transfer their assets to a trust during their lifetime, providing privacy and flexibility in managing assets, as well as protection against incapacity or disability. However, many people are unsure whether a living trust needs to be recorded in California to be legal.

The short answer is that a living trust is a private document and does not need to be recorded in California. The only time a trust is in a public record is when it contains real estate. In this case, the County Recorder’s office lists the trust’s name as the property’s title holder. However, if a trust does not hold title on real estate property, all assets held in the name of the trust are kept private. The trustee maintains a record of all trust property in a trust portfolio.

Basics of a Living Trust in California

Definition and Purpose of a Living Trust

A living trust is a legal document that is created to manage a person’s assets during their lifetime and after their death. The trust is created by the trustor (sometimes referred to as a grantor or settlor), who transfers their assets to the trust. The trustor can manage the assets as the trustee, and they can name a successor trustee to manage the assets after their death or incapacity.

The purpose of a living trust is to provide a way to manage a person’s assets during their lifetime and after their death. The trust can be used to avoid probate, which is a court-supervised process that is required to transfer assets after a person’s death. Probate can be time-consuming and expensive, and it can be avoided by using a living trust.

In addition to avoiding probate, a living trust can provide privacy and flexibility in managing assets. The trust can be used to protect assets from creditors and to provide for the care of minor children or other dependents. The trust can also be used to provide for charitable giving and to minimize estate taxes.

Does a Trust Need to be Recorded in California?

Understanding Recording in California

Recording a document means that it is filed with the county recorder’s office and becomes a public record. In California, living trusts are not required to be recorded, nor is it recommended. Living trusts are private documents that do not need to be recorded to be valid.

Situations Requiring a Living Trust to be Recorded

There are some situations where recording a living trust may be necessary or beneficial. For example, if you are purchasing real estate and want to use your living trust to hold title to the property, the lender or title company may require a certification of trust to title the property in the name of the trust. This document is a summary of the trust and verifies the trustee’s authority to act on behalf of the trust.

Another situation where recording a living trust may be beneficial is if you have real estate in multiple counties. Recording the properties in the name of the trust in each county can make it easier to transfer the property after your death.

Procedure for Recording a Living Trust

If you decide to record your living trust, you will need to prepare a certification of trust. This document should include the name of the trust, the date it was established, the name of the trustee, and a statement verifying the trustee’s authority to act on behalf of the trust.

Once the certification of trust is prepared, it must be signed by the trustee and notarized. The original certification of trust can be recorded with the county recorder’s office in the county where the property is located, but that is not necessary.  On the other hand, the property should be recorded in the name of the trust to avoid probate.

Consequences of Not Recording a Property Title into the Living Trust

As mentioned earlier, living trusts are not required to be recorded in California. However, if you choose not to record/transfer ownership of your real estate in the name of your living trust, your estate may need to go through probate to transfer the property after your death. Probate is a court-supervised process that can be time-consuming and expensive.

Contact Laguna Legal for Help With Your Living Trust and Deed

At Laguna Legal, we understand that creating a living trust can be a complex and daunting process. That’s why we’re here to help. Our experienced team has helped countless clients in California create living trusts that meet their unique needs and goals.

When you work with us, you can rest assured that your living trust will be tailored to your specific situation. We take the time to get to know you and your goals, and we’ll work closely with you to ensure that your living trust is comprehensive and effective.

We offer a range of living trust services, including:

• Living trust creation
• Transfer of Real Property into the living trust
• Trust amendments

Our team has extensive experience in all aspects of living trusts, and we’re committed to providing our clients with the highest level of service and support. We’re also a much more affordable option than working with pricey living trust attorneys. 

If you’re considering creating a living trust in California, we encourage you to contact us to schedule a consultation. We’ll be happy to send you our living trust information to help you determine whether a living trust is the right option for you.

At Laguna Legal, we’re committed to helping our clients achieve their estate planning goals. Contact us today to learn more about our living trust services and how we can help you.