California’s new probate law, effective April 1, 2025, makes it easier for heirs to inherit a primary residence worth up to $750,000 without opening a formal probate. The change could save families significant time, cost and stress when transferring property after a loved one’s death.
A new California law changes how heirs can inherit a family home without going through a formal probate, in some instances.
Assembly Bill 2016, which took effect on April 1, 2025, revises the California Probate Code to alter the expedited real property transfer process while also significantly raising the value cap to realistically reflect today’s higher housing costs.
If one of your relatives or loved ones has passed away since April 1, 2025, it is important to consider whether you may take advantage of this updated procedure to save time, energy and expenses in the process of transferring title to real property.
AB 2016 Narrows Property Types but Expands Value Limits
Preexisting law established that the successor, beneficiary or heir of a decedent may utilize an expedited procedure, without opening a formal probate, to dispose of a decedent’s real and personal property. Prior law allowed a successor to utilize this procedure if the gross value of all of the assets of decedent’s estate, excepting qualifying real property, did not exceed $184,500. Further, a successor could dispose of real property held by a decedent when the gross value of the real property, valued separately from all other assets of the estate, did not exceed $184,500. Certain types of real property, such as real property held in joint tenancy, were excluded from the valuation of the estate.
AB 2016 has altered the procedure as it applies to real property, limiting its applicability to primary residences. However, while AB 2016 limited the types of property that may qualify for the procedure, it significantly increased the threshold value of qualifying properties from $184,500 to $750,000. The increased threshold applies to individuals who died on or after April 1, 2025. The property of individuals who died between April 1, 2022, and March 31, 2025, will still be subject to the former threshold of $184,500. Notably, a “primary residence,” for purposes of this process, is not limited to the decedent’s residence at the time of their death.
How to Take Advantage of California’s New Probate Law
To start the process, a successor in interest must file a Petition Determining Succession to Primary Residence in the Superior Court of the county in which the decedent’s estate may be administered. The Petition is to request a court order determining that the petitioner has succeeded to that real property. Such a petition may only be filed at least 40 days following the death of the property owner and only where a proceeding was not previously initiated regarding the administration of decedent’s estate in California.
Alternatively, if a proceeding was already initiated, a petitioner may proceed with this process with the written consent of the personal representative of decedent’s estate. Petitioners should prepare for a probate referee to appraise the property before the petition is submitted.
The petition must be verified by the petitioner, and it must include the following information:
- The facts necessary to establish that the petition is filed in the proper county (i.e. the facts necessary to establish jurisdiction over the decedent’s estate);
- The petition must attach an inventory and appraisal form illustrating that the property does not exceed the $750,000 threshold based upon a probate referee’s assessment of the property;
- The legal description of the property;
- The facts supporting the assertion that the property was the decedent’s primary residence;
- The facts supporting the basis for which the petitioner alleges that that the property passes to the petitioner, and if the basis is derived from the decedent’s will, the will must be attached;
- The name, age, address and relation to the decedent of each heir and devisee of the decedent, the names and addresses of all persons named as executors of the will of the decedent, and, if the petitioner is the trustee of a trust that is a devisee under the will of the decedent, the names and addresses of all persons interested in the trust, so far as known to the petitioner;
- The name and address of each person serving as guardian or conservator of the estate of the decedent at the time of the decedent’s death, so far as known to any petitioner;
- A statement that no proceeding has begun or been conducted in California regarding the administration of decedent’s estate, or alternatively, attaching the written consent of the personal representative of decedent’s estate in such a proceeding.
The information listed above is intended to be summary of the required information and is not intended to be an exhaustive list for any and all circumstances which may cause the required information to vary.
Within five business days of filing the petition, the petitioner must deliver notice of the petition to each heir and devisee named in the petition. Any person may oppose the petition, and an opposing party may argue that the primary residence’s value exceeds the $750,000 limit. It is important to note that this process is concerned with gross value, rather than net value.
Although the above procedure provides for a quicker and less expensive process to transfer title to real property from a decedent, there are still legal consequences to consider and procedural pitfalls to avoid. Duckor Metzger & Wynne, APLC, has a team of experienced probate attorneys who are able to assist clients in every stage of administrating a decedent’s estate, whether or not a formal probate is necessary. Contact us today to discuss your estate administration or estate planning options.