If you have a spouse and children, your estate will pass to all of them. If you do not have any spouse or children, your assets will pass to your parents. If your parents have predeceased you, your assets will pass to your siblings equally, if they survive you. If your siblings do not survive you, their share will pass to their children, your nieces and nephews. The major purpose of a living trust is to avoid probate, which is the court process to change title from the Decedents name to that of the heirs.
Probate includes costly fees and time.
Basically, in California this means, if you own a home, you should be setting up a living trust. If you become incapacitated, your next of kin can step in and make decisions if their name or names are listed on the assets. Otherwise, they may need to go through a court procedure called conservatorship to take care of you or your estate. The need for a conservatorship can be eliminated with a Durable Power of Attorney and a Power of Attorney for Health Care. These documents avoid court procedures and the cost and time involved in a conservatorship.