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New California Law Expands Opportunity to Avoid Probate of a Family Home

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Header Art for New California Law Expands Opportunity to Avoid Probate of a Family Home by Jennifer Felten

California’s AB 2016 will modify the small estate declaration procedure by increasing the value limits for applicable estates.

California’s AB 2016, starting April 1, 2025, will change the small estate declaration process by raising the value limits for estates that apply. This law makes it easier to move property by letting more estates skip the official inheritance process. This helps families manage estate matters more easily.

AB 2016 raises the limit for personal property trades to $166,250. This means that estates with personal property, like cash, stocks, bank accounts, cars, and other non-real estate items worth up to $166,250 can use a simple document called a small estate declaration to transfer ownership without going to court.

What about estates that include real property?

For estates that include real property, there will be a maximum of $166,250. When real estate is involved, you need to hire a probate referee to assess its worth and submit a claim to the probate court. This means it takes more time and costs more than necessary for estates that only have real property. However, the petition process is much less expensive and faster than a full probate.

This new law can really help estates where the decedent’s main residence is valued at $750,000 or less. For these estates, the larger limit lets people skip probate by submitting through the petition process. On November 19, 2024, the California Association of Realtors announced that the average home price in the state was $888,740. These numbers back up the goal of the new law, which is to cut down on the time and cost of probate for people who need it the most.

Why is this new California Law important?

This law helps families with small estates, especially those whose property values have gone up recently because of inflation or higher home prices. It also fits with California’s efforts to make managing estates easier and less stressful.

Planning is still the best way to handle an estate. Sadly, many people don’t plan for the future. A 2024 study by Caring.com revealed that only 32% of U.S. adults have an estate plan. If you have to handle an estate without a plan, AB 2016 might help you. It’s a good idea to get help from a probate or estate lawyer to check if you qualify and to handle the necessary paperwork. Good planning and knowing the rules are important for making the most of these changes. AB 2016 makes it easier for Californians to move estates by raising the limits.

Jennifer Felten, Esq. is the principal owner of RELAW, APC, a boutique real estate law firm specializing in Escrow Title and Brokerage Law, Real Estate Development, Estate Planning and Probate. Ms. Felten has worked in the real estate industry since 1993, both on the transactional side as an escrow officer, and now as an advisor and litigator on the legal side. Currently she is licensed as an attorney, notary and real estate broker and can be reached at RELAW, APC.