The California State Assembly unanimously passed legislation that will allow homeowners to put beneficiaries on their real property (AB 139 will now move to the State Senate for consideration). Upon the death of the property owner, the property will pass to the named beneficiaries without the need for probate if the Senate also passes the bill.
I think the article, linked below, is a great resource on this topic. However, I disagree with the title, "Huge Win for the Middle Class." A beneficiary designation for real property is a huge win for everyone because it helps avoid probate, saves taxpayer money, and provides some relief to our overburdened courts.
Despite being a huge win for everyone, I would not recommend planning an estate by only using beneficiary designations. A comprehensive estate plan that utilizes a revocable living trust is the best way to protect property during illness, avoid probate, and distribute property to beneficiaries. Beneficiary designations cannot protect a persons's property during a long term illness. Without a comprehensive estate plan, a person's property could be in limbo as to how the property is to be used and managed during a long term illness.
A revocable trust is the best tool for managing property for the benefit of the owner during a period of illness thereby planning for a period of time between health and death. As a result, beneficiary designations on real property should only be viewed as a tool for estate planning, not a substitute.
http://californianewswire.com/2015/04/09/huge-win-for-middle-class-californians-as-probate-simplification-legislation-passes-state-assembly-ab139-CNW24745_103734.php/
