California’s New Estate Law: Understanding the Impact of Assembly Bill 2016
Starting April 1, 2025, Assembly Bill 2016 (AB 2016) will change how small estates are administered in California. AB2016 amends six sections of California’s Probate Code and repeals one. This new law aims to make the process easier for families and heirs by increasing the thresholds for using simplified probate procedures. Here’s what you need to know about the changes.
For Deaths Occurring Prior to April 1, 2025
Under current law, probate is required if a deceased person’s estate exceeds $184,500 in value. This means assets in the decedent’s name alone (not held in a trust or with beneficiary designations) must go through probate unless they qualify for a streamlined process.
Small Estate Affidavit: For estates valued at $184,500 or less, a successor in interest—someone entitled to inherit under a will or intestacy laws—can use a Small Estate Affidavit to claim personal property. The successor signs a declaration under penalty of perjury and presents it to the asset holder, who must transfer the property. This process avoids court involvement and is quicker and less costly than probate. Notably, this procedure is not available to be used for real property.
Affidavit for Real Property of Small Value: If the decedent owned real property in California worth less than $61,500, heirs could use an Affidavit for Real Property of Small Value to transfer the property. However, this process requires appraisal by a probate referee, a court filing, and recording with the county recorder, though it remains more efficient than full probate.
Petition for Determining Succession to Property: For estates under $184,500 that include real property worth more than $61,500, the heirs can file a petition to request a court order transferring the property. This process requires a court hearing and notice to interested parties but is still much faster than full probate.
For Deaths Occurring On or After April 1, 2025
AB 2016 significantly increases the estate value thresholds for summary probate procedures, allowing more families to avoid full probate. Here are the key changes:
Primary Residence Excluded from Small Estate Affidavit Threshold: The decedent’s primary residence (valued up to $750,000) will no longer count toward the $184,500 threshold for using a Small Estate Affidavit. This means heirs may be able to claim personal property without probate, even if the total estate value exceeds $184,500, as long as the primary residence meets the criteria.
Higher Threshold for Petition for Determining Succession to Real Property: Previously, this petition was only available for estates under $184,500. Under AB 2016, a decedent’s primary residence (valued up to $750,000) may also qualify for this streamlined court process.
Increased Estate Value Limit for Summary Procedures: The maximum estate value for using summary probate procedures is increasing dramatically—from $184,500 to $934,500. This includes up to $750,000 for a primary residence and up to $184,500 for personal property. This expansion will allow many more estates to bypass full probate proceedings.
What This Means for California Families
The changes under AB 2016 aim to reduce the burden of probate on families by expanding access to simplified procedures for probate. However, there are potential downsides:
Increased Property Disputes: Because heirs and other interested parties must be notified when a successor attempts to claim real property, disputes over ownership rights may become more common.
More Partition Actions: Conflicting goals among heirs—some wanting to keep the property, others wanting to sell—may lead to an increase in legal actions to fairly divide real estate.
Property Tax Reassessment: With the stringent rules regarding exclusion from property tax reassessment under Prop 19 still in effect, there is potential for more property tax reassessments to occur for inherited property due to sibling-to-sibling buy-outs of the primary residence.
Why Estate Planning Still Matters
While AB 2016 makes estate administration easier in some cases, it does not replace the need for proper estate planning. A trust-based estate plan still provides the best protection for you and your heirs, ensuring smooth wealth transfer without the need for probate administration or any court involvement, especially where the estate consists of more than one piece of real property or involves heirs or beneficiaries who are minors or have special needs. Proper planning also addresses issues like lifetime incapacity and tax efficiency—concerns that AB 2016 does not resolve.
The experienced team at DROBNY ROSENTHAL LAW OFFICES, PC is here to help you navigate these changes and develop a plan tailored to your needs.
If you have questions about how AB 2016 may affect you or an estate you are handling, consult a knowledgeable trusts and estates attorney at DROBNY ROSENTHAL LAW OFFICES, PC. This article was authored by Attorney and Shareholder, Anastasia Salmon, who can be reached at abs@drlo.law.
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