Losing a parent is emotionally overwhelming. On top of grief, many families are suddenly facing legal and financial questions they never expected to manage. This is one of the most common and stressful situations that arises when a parent passes away without creating a trust.
If your parents died without a trust in California, their estate will likely go through probate, a court-supervised process that can take time, cost money, and create confusion for families. Understanding what happens next can help you make informed decisions and avoid costly missteps.
What Does It Mean to Die Without a Trust in California?
When someone passes away without a trust, their assets are not automatically transferred to heirs. Instead, the estate is handled through California’s probate system.
This typically applies to:
- Real estate owned in the individual’s name
- Bank and investment accounts without named beneficiaries
- Personal property above certain value thresholds
Assets that generally do not go through probate include:
- Accounts with named beneficiaries (such as retirement accounts and life insurance policies)
- Property held in joint tenancy
- Assets already titled in a trust
What Is Probate and Why Does It Matter?
Probate is a legal process overseen by the California court system to validate the will (if one exists), appoint an estate administrator, pay outstanding debts and taxes, and distribute remaining assets to heirs.
In California, probate can take 9 to 18 months or longer, depending on the complexity of the estate. Court fees, attorney costs, and administrative expenses are often tied to the value of the estate, not the amount of work involved.
This process is public, time-consuming, and can delay access to assets families may need immediately.
Who Is Responsible for Managing the Estate?
If there is no trust, the court will appoint an executor or administrator to manage the estate. This role includes:
- Collecting financial records
- Managing estate bank accounts
- Filing required tax returns
- Paying creditors
- Distributing assets according to California intestacy laws
Even when a will exists, probate is still required if assets were not placed into a trust.
How Are Assets Distributed Without a Trust?
When someone dies without a trust, California law determines who inherits the estate. This is known as intestate succession.
Distribution depends on surviving family members, beginning with a spouse or registered domestic partner, who typically receives community property and a portion of separate property. If no spouse or domestic partner exists, assets generally pass to the deceased’s children. When there are no children, the estate may be distributed to parents, followed by siblings or their descendants if the parents are no longer living.
Importantly, these laws may not reflect your parents’ wishes, especially in blended families or complex financial situations.
Common Mistakes Families Make After a Death
During an already stressful time, families often make avoidable errors, including:
- Accessing or moving assets too early
- Failing to track estate expenses
- Missing tax filing obligations
- Underestimating probate timelines and costs
- Not coordinating legal and financial responsibilities
These missteps can lead to delays, penalties, or disputes among heirs.
Why a CPA Matters During Probate and Estate Administration
Probate and estate settlement involve more than legal paperwork. There are often:
- Final individual tax returns
- Estate or trust tax filings
- Asset valuation issues
- Income reporting during administration
A CPA helps ensure financial responsibilities are handled correctly and efficiently. A firm like DeMera DeMera Cameron works alongside families and legal counsel to help manage tax obligations, financial reporting, and estate administration during probate.
Planning Can Prevent This Situation
While probate may be unavoidable once a death occurs, this situation highlights why proactive estate planning matters. Trusts are commonly used in California to:
- Avoid probate
- Maintain privacy
- Streamline asset transfers
- Reduce administrative burdens on family members
Understanding how estates are handled without a trust often motivates families to plan differently for the future.
If you are navigating estate matters after the loss of a parent, understanding your financial and tax responsibilities is an important step. Working with a trusted CPA firm experienced in California estate administration can help families manage probate-related reporting and plan more effectively for the future.
DeMera DeMera Cameron works with individuals and families to provide clarity during estate settlement and proactive planning moving forward.