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Los Angeles Probate, Estate & Tax Blog

Recent developments in Probate, Estate and Tax Law.

California's 2025 Probate Threshold Increase: What It Means for Your Estate Plan

  • Writer: Linda Varga
    Linda Varga
  • May 17
  • 2 min read

Updated: 4 days ago

California's 2025 Probate Threshold Increase

Effective April 1, 2025, California's Assembly Bill 2016 (AB 2016) brings significant changes to the state's probate laws, particularly affecting small estates and primary residences. These adjustments aim to streamline the estate administration process for many Californians.



Key Changes Under AB 2016


1. Increased Threshold for Small Estate Affidavit

The small estate affidavit process allows heirs to claim a decedent's personal property without formal probate. Previously, this applied to estates valued under $184,500. Starting April 1, 2025, this threshold increases to $208,850, adjusted for inflation. This means more estates can utilize this simplified procedure to transfer assets like bank accounts, vehicles, and personal belongings.


2. Simplified Transfer for Primary Residences

AB 2016 introduces a new provision for transferring a decedent's primary residence without full probate, provided:

  • The property's gross value does not exceed $750,000.

  • The property was the decedent's primary residence in California.


Heirs can file a "Petition to Determine Succession to Real Property" to facilitate this transfer, reducing time and costs associated with traditional probate.


Practical Examples

Example 1: An individual passes away, leaving a primary residence valued at $700,000 and personal property worth $150,000. Under AB 2016:

  • The home can be transferred using the simplified petition process.

  • The personal property, being under $208,850, qualifies for the small estate affidavit.


Example 2: A decedent leaves a primary residence valued at $800,000. Despite other assets being minimal, the residence exceeds the $750,000 threshold, necessitating formal probate for the property.


Steps to Utilize the New Provisions


  1. Wait 40 Days: Ensure at least 40 days have passed since the decedent's death.

  2. Appraise the Property: Obtain an appraisal to confirm the property's value is within the new limits.

  3. File the Appropriate Petition: Submit the "Petition to Determine Succession to Real Property" for the primary residence or complete the small estate affidavit for personal property.

  4. Notify Interested Parties: Provide notice to all heirs and beneficiaries as required.

  5. Attend Court Hearing (if applicable): For the real property petition, attend the scheduled court hearing to obtain the order for property transfer.(San Francisco Chronicle, Self-Help Guide to the California Courts)


Considerations for Estate Planning


While AB 2016 simplifies certain aspects of estate administration, it's essential to:

  • Review and Update Estate Plans: Ensure your estate plan aligns with the new thresholds and utilizes available simplified procedures.

  • Consult Professionals: Seek advice from estate planning attorneys to navigate the nuances of the updated laws effectively.

  • Consider Trusts: For estates exceeding the new thresholds or for those seeking to avoid probate entirely, establishing a living trust remains a viable option.


Conclusion

California's AB 2016 offers valuable opportunities to streamline estate administration for many residents. By understanding and leveraging these changes, individuals can ensure a more efficient transfer of assets to their heirs.


For personalized guidance on how AB 2016 affects your estate plan, consider consulting with an experienced estate planning attorney.


Contact the top-rated California trust and probate attorneys Moravec, Varga & Mooney today to schedule a telephonic consultation. Have questions? call (626) 460-1763 or email LV@MoravecsLaw.com.


Southern California Probate Lawyer Serving all counties in California, including Los Angeles, Riverside, San Bernardino, Sacramento, Santa Cruz & Beyond.

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