When One Spouse Dies and You Have a Joint Living Trust: What Happens Next (California)
Losing a spouse is overwhelming—and the paperwork that follows can feel like it arrives all at once. The good news is that a properly funded joint living trust is designed to make this transition smoother, especially when the trust says “everything goes to the surviving spouse.”
Below is a plain-English walkthrough of what typically happens, plus a practical checklist of next steps.
How does “the system” find out someone died?
A lot of the process starts with the death certificate.
The funeral home usually helps complete and file the death record and can assist you in ordering certified copies (you’ll need these for banks, insurance companies, and others).
Social Security is often notified by the funeral home (though not always, so it’s worth confirming).
Other institutions—banks, brokerage firms, life insurance carriers, pension administrators, mortgage servicers—generally do not get automatically notified. In most cases, the surviving spouse (or trustee) notifies them and provides a certified death certificate.
A practical tip: many families order multiple certified copies of the death certificate, because several institutions want an original certified copy rather than a photocopy.
What a joint living trust usually does at the first death
A living trust doesn’t “end” when the first spouse dies. Instead, the trust continues—and in an “all to survivor” plan, the surviving spouse usually becomes the acting trustee (often as sole trustee) and continues managing the trust assets for their own benefit.
That said, even when no probate is needed, there’s still a real-world administration phase:
confirming who the trustee is now,
updating real property records,
collecting date-of-death values for tax basis,
and cleaning up any assets that never made it into the trust.
A practical checklist for the surviving spouse (and trustee)
1) Gather the key documents
Start a single folder (paper or digital) with:
Trust, wills, and any amendments
Death certificate certified copies
Marriage certificate (sometimes requested)
List of assets and logins
Last year’s tax returns
2) Lodge the decedent’s will with the probate court (even if there’s no probate)
In California, the custodian of the will generally must deliver the original will to the Superior Court clerk within 30 days of learning of the death (unless a probate petition is filed sooner).
This step is easy to miss because people associate “wills” with “probate,” but lodging is often required even when the trust avoids probate.
3) Update title records for real estate
For each piece of real property held in the trust, it’s common to:
Prepare and record an Affidavit of Death/Change of Trustee (wording varies by county/recorder and title company preferences) so the public record clearly shows who the acting trustee is.
Notify the County Assessor using the appropriate “death of owner / change in ownership” reporting.
4) Get date-of-death values so you don’t lose tax benefits
One of the biggest financial “wins” after a spouse’s death is often the basis adjustment (sometimes called a “step-up in basis”). In plain English: certain assets may get their tax basis reset closer to fair market value as of the date of death—reducing potential capital gains tax later.
Common next steps:
Order date-of-death appraisals for real estate.
Ask brokerages/custodians for date-of-death values and any basis adjustments.
Coordinate with your CPA/attorney, especially because community property rules can affect what gets adjusted.
5) Identify “trust assets” vs. “straggler assets”
Even excellent plans sometimes have accounts left outside the trust.
If an asset is in the decedent’s individual name (and no beneficiary designation controls it), you may be able to use a small estate affidavit process for certain assets—depending on value and timing. California’s maximum values are updated periodically; as of deaths on or after April 1, 2025, the “Affidavit for Collection… of Personal Property” threshold is $208,850, and the “Petition… Succession to Primary Residence” threshold is $750,000.
6) Notify financial institutions and claim benefits
This usually includes:
Banks and brokerage firms (freeze protocols vary)
Life insurance claim forms
Pension/retirement administrators
Social Security survivor benefits review (the surviving spouse may be entitled to the higher benefit, and there’s also a one-time $255 lump-sum death payment in some cases).
If the decedent was a veteran, explore burial allowances (amounts depend on eligibility and date-of-death categories).
7) Cars, credit cards, and the “small stuff” that becomes big later
A few commonly overlooked items:
Vehicle title transfers may require DMV forms like REG 5 and REG 256 depending on the situation.
Credit cards, airline miles, and loyalty points: each issuer has its own policy.
Personal property memorandum and any specific gifts: confirm whether anything needs to be distributed now, later, or not at all.
8) Mortgage and “successor in interest” issues
If there’s a mortgage, the surviving spouse typically keeps paying as usual, but it’s still smart to notify the servicer and ask about their “successor in interest” process—especially if the loan was only in the decedent’s name.
9) Medi-Cal: don’t ignore notice requirements
If the decedent received (or may have received) Medi-Cal benefits, California law can require notice to DHCS within 90 days of death in certain situations.
10) Update the surviving spouse’s own plan
After the dust settles, this is the moment to:
Update the Certificate of Trust
Refresh Durable Power of Attorney and Advance Health Care Directive
Consider whether the trust should be restated (especially if the old plan named the deceased spouse in multiple roles)
Review and update beneficiary designations (IRA/401(k)/annuity/life insurance)
And if a child is already helping with finances, it may be worth discussing whether adding them as a co-trustee (now or later) improves oversight and reduces stress.
A joint living trust can dramatically reduce probate headaches—but it doesn’t eliminate the need for thoughtful “cleanup” after the first spouse’s death. The right checklist (and the right support) helps the surviving spouse protect assets, preserve tax benefits, and regain a sense of control during a hard season.