Legal Question in Real Estate Law in California

Re: Homestead Declaration

California has two kinds of homsteads; one is automatic, i.e. certain property is exempt from levy, including some equity in your residence; the other requires filing a declaration of homestead, but the additional exemption you get is pretty minimal, so I sometimes advise people who ask whether they should declare homestead that is isn't worthwhile, especially since a newly-filed homestead declaration is a kind of red flag to creditors that trouble is brewing.

In your case, if the issue is not current unpaid debts, but rather, your concern about possible future judgments, filing a homestead declaration might be worth considering. I can't advise one way or the other without more information about your situation.

A revocable trust will not give you any protection. An irrevocable trust might give you worthwhile insulation if well drawn and not a fraud upon present of forseeable creditors, but you must truly relinquish control.

Probably your best bet is insurance. Most homeowner policies include a modest amount of general liability coverage. Ask your agent to explain whether this covers the risks you have in mind and whether the policy limits can be increased; or maybe you need a separate policy.

If your risk exposure comes from a particular activity, shop for specialized insurance; e.g., if you are a dangerous driver, get more auto insurance; if you're a professional, get malpractice insurance; if you own a business, get small-business public-liability coverage, including products liability.

I would also consult with a lawyer with a broad general practice including litigation defense to discuss any particular legal situations that are worrying you.