If you’re a California resident creating or managing a trust that includes real estate—especially a family home—you need to understand how state law protects your heirs’ property rights. A recent California case, Godoy v. Linzner, clarifies an important rule: you cannot place unreasonable restrictions on your beneficiaries’ ability to sell or transfer inherited property.
Who This Affects
This ruling matters if you are:
What the Court Decided
The California court applied Civil Code section 711, which prohibits unreasonable restraints on alienation, to property transferred through trusts and wills. In simpler terms: California law protects your right to sell or transfer property you inherit, even if the person who created the trust tried to limit that right.
In this case, three children each inherited a one-third ownership interest in their family home after their parent died. The trust attempted to restrict what the children could do with their shares, but the court found these restrictions violated California law.
What Does “Unreasonable Restraint on Alienation” Mean?
Alienation simply means transferring or selling property. An unreasonable restraint is any rule that makes it too difficult for an owner to sell, gift, or otherwise transfer their property interest. While some temporary or limited restrictions may be acceptable, California strongly favors property owners’ freedom to control their own assets.
Real-World Implications for Your Estate Plan
If you’re creating a trust:
If you’ve inherited property with restrictions:
How to Protect Family Property Without Violating California Law
Many families want to keep a cherished home in the family for generations. Rather than imposing rigid restrictions that courts may strike down, consider these alternatives:
Why California Residents Need Specialized Estate Planning Guidance
California has specific laws governing trusts, probate, and property transfers that differ from other states. What works in another jurisdiction may create legal problems here. The Godoy v. Linzner case demonstrates why generic estate planning documents or online templates may not adequately protect your family’s interests.
At California Probate and Trust, PC, we help California families navigate complex property and trust issues. Our experienced estate planning attorneys understand how to structure trusts that honor your wishes while complying with California law. We’ve assisted thousands of clients in Sacramento, Fair Oaks, and San Francisco with creating comprehensive estate plans that protect both current and future generations.
Take Action to Protect Your Family’s Property Rights
Whether you’re creating an estate plan or dealing with property you’ve inherited, professional guidance ensures your rights are protected and your intentions are legally sound.
Schedule a free consultation with California Probate and Trust, PC today. Our compassionate attorneys will review your situation, explain your options in plain language, and develop a strategy tailored to your family’s needs. We offer transparent pricing and prioritize building lasting relationships with California residents who value clarity and family protection.
Contact us now to discuss your estate planning or property inheritance questions.
Source: California Lawyers Association – Godoy v. Linzner
About the Author: Dustin MacFarlane, Esq.
California Licensed Attorney | Estate Planning Specialist
Dustin MacFarlane is the founder of California Probate and Trust, PC, with over 15 years of experience in estate planning, probate administration, and trust law. Licensed by the California State Bar, Dustin has helped thousands of California families protect their assets and plan for the future.
CA Bar License: Active | Practice Areas: Estate Planning, Probate, Trust Administration | Location: Granite Bay, CA
Why Estate Planning Matters in California
California has unique estate planning laws that differ significantly from other states. Without proper planning, your assets may not pass according to your wishes, and your family could face unnecessary probate court proceedings.
A comprehensive California estate plan typically includes:
- A revocable living trust to avoid probate
- Pour-over will as a safety net
- Advance health care directive
- Durable power of attorney for finances
- Beneficiary designations on retirement accounts and life insurance
How Trusts Work in California
California’s trust law (Probate Code Division 9) governs how trusts are created, administered, and terminated. Understanding these rules is essential for effective estate planning.
Key benefits of California trusts:
- Avoid probate: Assets in a properly funded trust bypass California’s lengthy probate process
- Privacy: Unlike wills (which become public in probate), trusts remain private
- Control: You maintain control during your lifetime and direct distribution after death
- Incapacity planning: Your successor trustee manages assets if you become incapacitated
- Tax planning: Trusts can help minimize estate and income taxes
Need Expert Estate Planning Guidance?
California estate planning law is complex and constantly evolving. Don’t navigate it alone.
California Probate and Trust, PC has helped thousands of California families protect their assets and plan for the future.
📞 Call us today:
- Main Office: 866-400-0058
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