Legal Question in Wills and Trusts in California

Well it depends on what you call a problem and where the shares of the LLC are held. If the real estate is vested in the LLC and the shares of the LLC are owned by the trust, then it should all be pretty tidy. If the shares of the LLC are not held in the trust, but you have a pour-over will, there will have to be a probate, but it should be pretty simple. Most people consider any probate a problem, but it would not be much of one. If the LLC is not in the trust and you do not have a pour over will, your estate will be in probate as an intestate case. Pretty much everyone considers that a significant problem, unless you know for sure the law of intestate succession is exactly how you want the LLC shares distributed AND it won't cause unnecessary taxation.

What Mr. McCormick is pointing out is that the ownership of the real estate is in the LLC and not the Trust. Unless the Trust owns at least some of the LLC, then the Trust's existence probably does not matter as it has no effect on the real property.

The major reason applicable almost all estates to try to avoid probate is the cost; court fees for filing almost anything are now about $425, if an independent executor is appointed they are entitled to a percentage of the gross value of the estate, etc. Anytime you use a legal document, you must be sure that it has been put into effect and that if you are not available to obtain it that someone responsible can find it [a Will hidden among old telephone bills may never be spotted, or may be destroyed by someone disinherited in the Will].