“Yesterday is gone. Tomorrow has not yet come. We have only today. Let us begin.” – St. Teresa of Calcutta.
California’s probate process is an expensive, lengthy, and often frustrating procedure required to transfer property to a person’s heirs after death. If an individual owns real estate, financial accounts, or other property without a beneficiary designation, and the person dies “intestate” (without a will), or dies with a will (rather than a properly funded trust), a probate is required if the dollar value of the property exceeds probate limitations on the date of death.
The current threshold for probate is $208,850, effective April 1. While “small estates” have simplified procedures, a new law has adjusted the value limitation applicable to a decedent’s personal residence so the home can be transferred without a full probate if the value is $750,000 or less.
California’s AB 2016 became effective April 1, 2025, and will apply to deaths occurring on or after that date. Here are the key changes to the law:
- The new limitation applies only to the decedent’s primary residence. Homes valued at $750,000 or less will no longer be subject to full probate. Estates can now file a “Petition to Determine Succession to Real Property” for qualifying homes.
- Other property remains subject to the current threshold of $208,850, in addition to the primary residence if it qualifies. Therefore, combined assets up to $958,850 may now qualify for a streamlined process ($750,000 for the home + $208,850 in cash or other assets).
- The “primary residence” is the decedent’s main home, even if it was not the person’s residence at the time of death.
- Notice to all “heirs and devisees” is required.
- At least 40 days must pass after the decedent’s death before a petition can be filed.
- A probate referee (a special type of appraiser approved by the courts) will need to appraise the home and provide a report that must be attached to the petition.
- Court filing fees, appraisal fees, and possibly attorney’s fees to prepare the petition will be required.
While these changes may help some families avoid years in probate court, given the high values of California real estate, most local homeowners are not impacted by this change in the law. Even for those in areas where one could find a home under $750,000, creating a living trust and comprehensive estate plan is still the best way to protect your assets. A properly funded living trust allows homeowners to avoid court entirely, regardless of the value of the estate. Unlike the increased threshold, a trust ensures privacy, protects the homeowner during incapacity, minimizes legal fees, and provides more control over asset distribution.
If you are interested in protecting your estate by creating a living trust and estate plan, there is no better time than now! Your local estate planning attorney Susan Hattan is here to answer any questions you may have about estate planning. Call today for more information and a FREE consultation.
949.285.4270 / SusanHattanLaw.com / Susan@SusanHattanLaw.com
903 Calle Amanecer, Suite 230, San Clemente, CA 92673
