Creating a trust is only the first step: for your trust to work as intended, it must be funded. “Funding” means re-titling assets from your individual name into the name of your trust (for example, from “John Smith” to “John Smith, Trustee of the John Smith Revocable Living Trust dated January 1, 2026”).

Assets that should generally be transferred into your trust include:

• Real estate (your primary residence, vacation homes, rental properties, and California commercial property)

• Bank accounts and brokerage/investment accounts

• Business interests (LLC membership interests, shares in closely held corporations, partnership interests)

• Promissory notes and other receivables

• Intellectual property and valuable personal property such as art or jewelry (via an assignment document)

Assets that should NOT be transferred into your trust include IRAs, 401(k)s, and other tax-deferred retirement accounts (your trust can be named as a beneficiary instead), vehicles registered with the California DMV, and health savings accounts.

Unfunded trusts are one of the most common, and most costly, estate planning mistakes. At Laurel Trust Law LLP, we guide every client through the funding process and confirm that key assets are properly titled before we consider a plan complete.

Assets left outside your trust that do not have a named beneficiary or joint owner will generally be subject to California probate. If the total value of those assets exceeds $208,850 (the current California threshold as of 2026), a full probate proceeding will be required.

That is why funding your trust, and keeping it updated as you acquire new assets, is just as important as creating it. A pour-over will can direct these “leftover” assets into your trust after your death, but they will still go through probate to get there.

Some assets pass outside of both your trust and your will by operation of law: retirement accounts, life insurance, and annuities pass directly to your named beneficiaries, and jointly owned property passes to the surviving co-owner. Reviewing these beneficiary designations is an important part of a comprehensive estate plan.

We recommend reviewing your estate plan every three to five years, or sooner if any of the following occur:

• Marriage, divorce, or the death of a spouse or beneficiary

• Birth or adoption of a child or grandchild

• Significant changes in your financial situation (a business sale, inheritance, or large investment gain)

• Acquisition of real estate in a new state

• Changes in tax law that may affect your estate planning strategy

• Changes in your relationship with a named trustee or beneficiary

A trust is not a document you create once and forget. California law changes, your family changes, and your assets change. At Laurel Trust Law LLP, we encourage clients to think of their estate plan as a living document and reach out any time a significant life event occurs. An outdated trust can be just as problematic as no trust at all.

No. This is one of the most important misconceptions in estate planning. A revocable living trust does not provide asset protection from your creditors during your lifetime. Because you retain full control over the trust and can revoke it at any time, the law treats the trust assets as your own for creditor purposes. If a creditor obtains a judgment against you, they can generally reach assets held in your revocable trust.

To achieve creditor protection, you typically need an irrevocable trust, which often requires you to permanently transfer control of assets to an independent trustee. Common strategies for high-net-worth clients include irrevocable life insurance trusts (ILITs), spousal lifetime access trusts (SLATs), domestic asset protection trusts in states where such trusts are valid, and charitable remainder trusts.

That said, your revocable trust does offer one important form of protection: it protects your estate from creditor claims that arise after your death by allowing assets to pass quickly and privately, before creditors can easily identify and attach them.

If asset protection is a concern for you, particularly if you are a business owner, professional, or real estate investor, Laurel Trust Law LLP can evaluate which strategies are appropriate for your specific situation.

For business owners, planning can be more complex, and more important, than for many other clients. Your business is likely your most valuable asset, and without a proper plan, it could be disrupted, devalued, or forced into a sale at your death or incapacity.

A comprehensive plan for business owners should include collaboration among a trust and estates attorney, a financial advisor, a business attorney, and other experts that typically addresses:

• Ownership succession. Who will own and control the business after you? A trust can hold your business interests and provide for an orderly transition.

• Buy-sell agreements. If you have business partners, a buy-sell agreement funded with life insurance ensures a smooth buyout if one owner dies or becomes incapacitated.

• Business valuation and gifting strategies. Discounted gifting of minority interests can significantly reduce estate taxes for owners of closely held businesses.

• Separation of business and personal assets. Ensuring your personal estate plan and your business succession plan work together, not against each other.

Without an estate plan, your business interests will be subject to California probate, which can take one to two years or more. During that time, the business may be difficult to manage, difficult to sell, and potentially subject to creditor claims. Courts may appoint an administrator who has no familiarity with your business or your partners.

If you have co-owners and no buy-sell agreement, your business interest could pass to your heirs, who may have no desire or ability to be your business partner. This can force a sale or dissolution at the worst possible time.

The cost of not planning is almost always far greater than the cost of planning. We encourage business owners to schedule a consultation before a triggering event occurs.

Laurel Trust Law LLP is a boutique trusts and estates firm with offices in Studio City and Mission Viejo. Our team of experienced attorneys, each with over a decade of practice and backgrounds at major law firms, focuses exclusively on estate planning, trust administration, and probate representation. That specialization means you work with attorneys who do this work every day, not as one of many practice areas. We serve clients throughout California, including families with young children, business owners, executives, and retirees with complex financial lives.

We believe that a great estate plan is one you understand and feel confident in. We take time with every client to explain not just the documents but the strategy behind them. Our clients tend to refer us because they trust that we’ll take their families and their legacies seriously.

Coming prepared to your initial consultation helps us understand your situation quickly and give you meaningful advice from the first conversation. It’s helpful to have a general sense of:

• Your family situation: marital status, children (and their ages), any children from prior relationships, and anyone with special needs or circumstances

• Your major assets: real estate (with a rough idea of value), investment and bank accounts, retirement accounts, business interests, and life insurance

• Your goals: who you want to receive your assets, at what ages or under what conditions, and who you trust to manage things if you cannot

• Any existing documents: prior wills, trusts, powers of attorney, or beneficiary designations you already have in place

You don’t need to have everything organized perfectly before you call us. We’ll guide you through the rest. The most important step is simply to schedule a conversation.