Big Changes to California’s Probate: How New Law Can Help Your Family Avoid Court
California's probate landscape is changing significantly with the implementation of Assembly Bill 2016 (AB 2016), effective April 1, 2025. This legislation revises the Probate Code, particularly how small estates are defined and handled. For California families, understanding these updates is crucial to navigating estate planning effectively and ensuring that assets transfer according to their wishes. These changes are especially important in high-cost regions like the Central Coast, where even modest estates can trigger complex probate requirements.
Understanding Probate and Small Estates in California
Probate is the legal process by which a deceased person's assets are distributed under court supervision. Traditionally, this process is time-consuming, expensive, and often stressful for grieving families. The court ensures that debts are paid, taxes are settled, and remaining assets are distributed according to the will or, if none exists, state intestacy laws.
To reduce the burden of full probate, California law provides simplified procedures for "small estates." These procedures enable certain assets to be transferred without going through the full court process. However, the definition of a "small estate" and the eligibility requirements have changed over the years and are now undergoing their most significant update in over a decade.
Updated Thresholds and Key Changes Under AB 2016
AB 2016 introduces pivotal amendments, including:
Affidavit for Personal Property Up to $208,850: As of April 1, 2025, if the total value of the decedent's personal property is $208,850 or less, heirs can use a small estate affidavit to collect those assets without probate. This increase from the prior $184,500 threshold reflects adjustments for inflation and aims to cover a wider range of families.
New Petition Process for Primary Residences Only: Estates that include a primary residence valued up to $750,000 can now avoid probate by filing a simplified court petition (Form DE-310). This streamlined process allows the court to confirm the successor’s right to the property without the full probate process. However, this option is only available if the home was the decedent’s primary residence.
Procedural Gap for Non-Primary Real Property: Under prior law, heirs could file a simplified petition (also using Form DE-310) to transfer any real property below a set value. That option no longer exists. As of April 1, 2025, there is no summary court process for transferring real property unless it is the decedent’s primary residence. If the property is a rental, vacation home, or vacant land and exceeds $69,625 in value, a full probate is now required—even if the total estate value is modest.
Implications for California Families
These changes offer both opportunities and challenges for Californians planning or administering estates:
Streamlined Transfers for Primary Homes: Families may now avoid probate for the decedent’s main home, saving significant time and expense. This is particularly beneficial in areas with high property values, where even modest homes exceed prior estate limits.
No Shortcut for Other Real Property: Families inheriting investment properties, farmland, or second homes will face full probate unless advance planning was completed. This gap in the law has drawn attention and may prompt further legislative fixes in the future.
Expanded Use of Affidavits for Personal Assets: With the new $208,850 cap, more families can use affidavits to transfer bank accounts, investment accounts, and other personal property outside of probate, easing administration.
Need for Strategic Planning: The separation of personal property, primary residence, and non-primary real property rules means careful planning is more important than ever. Using a combination of tools—such as trusts, transfer-on-death deeds, and beneficiary designations—can help families avoid probate for all categories of assets.
Why Estate Planning Still Matters
While AB 2016 brings welcome relief for some families, it also introduces new complexity. A one-size-fits-all approach to estate planning is now even less effective. Here are a few key reasons why proper planning is still essential:
Non-Probate Assets: Retirement accounts, life insurance policies, and assets held in trust are not impacted by these changes. Ensuring they have correct and up-to-date beneficiary designations remains critical.
Blended Families and Special Situations: When families include stepchildren, unmarried partners, minor children, or individuals with special needs, customized estate planning is necessary to ensure fair and effective distribution.
Avoiding Probate for All Property Types: Since only primary residences now qualify for the simplified DE-310 petition, property owners should consider using a revocable living trust or transfer-on-death deed to avoid probate on rentals or second homes.
Tax Planning: Strategic estate planning can also help minimize estate and capital gains taxes, preserve family wealth, and support charitable giving goals.
Protect Your Legacy with Devey Law
AB 2016 simplifies certain aspects of estate administration but creates new challenges that require careful attention. At Devey Law, A Professional Law Corporation, we are committed to helping California families make informed decisions that reflect both the law and their personal values.
Whether you need to update an existing estate plan or create a new one, we are here to guide you through the process. We will help you take advantage of the new opportunities provided under AB 2016 and ensure that your plan avoids the unintended consequences of these legal changes.
Schedule a consultation today to discuss how these changes impact your estate and to ensure your legacy is secure for the next generation.
Need help with Estate Planning, Trust Administration, Probate, or Business Law? Devey Law is here for you. Call us at 805.720.3411 or email info@deveylaw.com to schedule a consultation.
This blog is for informational purposes only and does not constitute legal advice. Reading this blog does not create an attorney-client relationship between you and Devey Law, A Professional Law Corporation. Laws and regulations may change, and the information provided may not reflect the most current legal developments.
