California offers homeowners two main ways to keep their property out of probate court: a Transfer-on-Death deed and a revocable living trust. Both work. Neither is right for everyone. Here's how they compare.
If you own a home in California and you don't want it to go through probate court when you die, you have two main options: a Transfer-on-Death (TOD) deed or a revocable living trust. They achieve a similar end result — your property goes to your chosen beneficiaries without probate — but they work very differently. This article walks through both, the trade-offs, and how to decide which fits your situation.
A Transfer-on-Death deed (sometimes called a "Revocable Transfer on Death Deed" or "Beneficiary Deed") is a deed you record while you're alive, naming who should automatically receive your real property when you die. While you're alive, you still own the property completely — you can sell it, refinance it, or revoke the deed at any time. When you die, the property transfers to the named beneficiary by operation of law, no probate required.
California authorized TOD deeds in 2016 (with technical amendments since), so this is a relatively recent option here.
A revocable living trust is a legal entity you create and put your assets into. While you're alive, you act as the trustee (and beneficiary), so you control everything as if you still personally owned it. When you die, a successor trustee you've named takes over the trust and distributes the assets to the beneficiaries you've named, all according to the trust's instructions — again, no probate required.
Trusts have been around for centuries; in modern California estate planning they're the standard tool.
Cost: A TOD deed costs about $250 to prepare and record with the county. A full Individual Living Trust Bundle costs $950, or $1,350 for a married couple. So a TOD deed wins on price by roughly 4×.
What it covers: A TOD deed only covers one specific piece of California real property — typically a residence with 1–4 units. A living trust can hold any kind of asset: real property in or out of California, bank accounts, brokerage accounts, business interests, valuable personal property. If your estate is more than just a house, the trust covers everything in one place.
When it works: A TOD deed works when title to the property cleanly passes to the named beneficiary. It doesn't help if the named beneficiary dies before you do (unless you've named contingent beneficiaries). It doesn't help if you become incapacitated — TOD deeds only operate on death, not during periods of incompetency. A trust covers both scenarios: incapacity (the successor trustee can step in if you're alive but unable to manage things) and death.
Property type: California's TOD deed only works for residential property of 1–4 units. It doesn't apply to commercial property, apartment buildings with more than four units, agricultural land, or many condominium configurations. A living trust works for any property type.
Multiple beneficiaries: If you want multiple people to inherit the property, a TOD deed makes them tenants in common — meaning each owns an undivided share, and if they disagree about what to do with the property, you've created the next family fight. A living trust can handle multiple beneficiaries with much more nuance: equal shares, unequal shares, contingent gifts, conditional distributions, spendthrift protections.
Contesting: A TOD deed can be contested by disappointed heirs after death, just like a will. Trusts can also be contested, but a well-drafted trust with a proper signing process is somewhat harder to attack.
Privacy: A TOD deed is recorded with the county, so it's a public record. Anyone can look up who inherits your property by pulling the recorded deed. A living trust is private — only the trustee and beneficiaries see it.
Probate avoidance for non-real-estate assets: If a TOD deed handles your house, your bank accounts and other personal property still need to go somewhere when you die. California allows up to $184,500 of personal property (as of 2025; adjusts every three years) to pass via a small-estate affidavit without probate. If your non-real-estate assets fit under that cap, you're fine with just a TOD deed. If they don't, you need a trust or a will plus probate.
A TOD deed fits well when:
I prepare and record TOD deeds for $250. See the Deeds page →
A living trust fits better when:
For most California homeowners with normal estates, a living trust is the more flexible and comprehensive option. The price difference is real — $950 vs. $250 — but the trust does much more.
Some clients combine the two: a living trust for everything except one specific property, and a TOD deed on that property to give it to a specific beneficiary as a separate gift. This works fine — the key is making sure the documents don't conflict with each other. I'll talk you through whether your situation might fit a hybrid approach.
Both a TOD deed and a living trust avoid probate, which means:
The choice between TOD deed and living trust isn't between "probate vs. no probate" — both avoid probate. It's between two different ways of doing the same job, with different trade-offs.
Don't try to skip both options by adding your kids' names to the property deed during your lifetime ("joint tenancy with right of survivorship"). It seems like a free shortcut, but it creates problems: gift tax issues, a loss of the step-up in basis at your death (which can mean a big capital gains tax bill for your kids when they eventually sell), exposure of your house to your kids' creditors and divorces, and the legal fact that you can no longer sell or refinance the property without your kids' agreement. Joint tenancy with kids is one of the most expensive "free" estate plans available. Either a TOD deed or a living trust is dramatically better.
The initial conversation is free. I'll help you think through which tool (or which combination) works for your assets.
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