Should You Still Create a Trust If Your California Home Qualifies for the New $750,000 Procedure?

Short Answer: Yes. Even if your California primary residence qualifies for the new $750,000 simplified transfer procedure under AB 2016, a trust still provides broader protection for your full estate, your privacy, your family's future, and assets that the new law simply does not cover.

What the New $750,000 Procedure Actually Does

California's Assembly Bill 2016 took effect on April 1, 2025, and it changed the rules around the simplified probate process for primary residences. Before this law, the probate limit for real property under the simplified Petition to Determine Succession to Real Property (Form DE-310) was just $166,250 — a threshold that made it nearly useless in a state where the median home value far exceeds that amount.

Under AB 2016, California Probate Code §13150 now allows heirs to transfer a decedent's primary residence valued at $750,000 or less through a simplified court petition rather than full probate administration. If your loved one passed away on or after April 1, 2025, and their California primary residence, their family home, falls at or below that market value (net of liens and encumbrances), their heirs may file the DE-310 petition rather than opening a full probate case.

That sounds like a complete solution. In many situations, however, it is only a partial one.

The 5 Limits of the $750,000 Simplified Procedure You Need to Know

The new simplified transfer procedure offers real relief, but it comes with important restrictions that can leave a family exposed.

1. It Only Applies to the Primary Residence

The $750,000 probate threshold applies exclusively to the decedent's primary residence in California. Rental property, vacation homes, investment real estate, and other real property do not qualify. Those assets face the existing real property threshold, far lower, or require full probate administration if they exceed the personal property small estate limit of $208,850.

If your loved one owns both a family home and a rental property, the rental property falls entirely outside this simplified pathway. Full California probate, with statutory probate fees, court fees, executor fees, publication fees, probate referee fees, and months of court delays, applies to the rental property's estate value regardless of what happens with the residence.

2. Court Involvement Still Happens

This is not a true probate shortcut in the way a trust is. The simplified procedure still requires:

• Filing a Petition to Determine Succession to Real Property (Form DE-310) with the probate court

• Obtaining a court-appointed probate referee appraisal to confirm the home's value falls under $750,000 at the date of death

• Serving notice on all heirs, devisees, and interested parties at least 15 days before the hearing

• Attending a court hearing

• Recording the court order with the county recorder to update title

• A 40-day waiting period before filing

• Payment of a $500 filing fee plus other court-related costs
  

A trust, by contrast, transfers property entirely outside the court process. The successor trustee transfers title through a simple trustee's deed, no petition, no hearing, no probate calendar, no court delays.

3. Personal Property and Cash Assets Are Not Covered

The simplified $750,000 rule covers the primary residence only. Bank accounts, cash assets, investment accounts, vehicles, jewelry, and other personal property still fall under the $208,850 small estate affidavit threshold. If your total estate value — including personal property, exceeds that limit, those assets face full probate administration regardless of what happens with the home.

A properly funded trust captures all estate assets, real property, personal property, financial accounts, and more, and transfers each one outside probate entirely.

4. It Does Not Plan for Incapacity

The simplified probate procedure is a death-time tool only. It does nothing to protect you or your family home if you become incapacitated before you die. Without a trust, a court-supervised conservatorship may be required to manage your property and finances during your lifetime, a process that is expensive, public, and deeply intrusive.

A revocable living trust lets your successor trustee step in immediately upon your incapacity without any court involvement.

5. It Does Not Provide Privacy

Probate proceedings, even simplified ones, are public record. The DE-310 petition, the inventory and appraisal, and the court order all become part of the public probate case file. Anyone can access those records, including details about your property, its value, and the identities of your heirs.

A trust is a private document. Its contents, including the names of beneficiaries, the nature of assets, and the distribution instructions, never enter the public record. For many California families, that privacy is essential to protecting generational wealth and preserving family harmony.

When the $750,000 Procedure Might Be Enough

Fairness requires acknowledging when the simplified procedure genuinely serves a family well. If the decedent's entire estate consists of a single primary residence valued at $750,000 or less, plus personal property under $208,850, and all heirs are adult, cooperative, and easy to locate, the DE-310 petition can transfer the family home with less expense than formal probate and without the upfront cost of creating a trust.

Even in those cases, however, the procedure does not plan for the future. It resolves a death that has already occurred; it does not protect you from what happens next. A trust is proactive; the simplified petition is reactive.

Why a Trust Remains the Stronger Estate Planning Choice

A revocable living trust addresses everything the simplified probate procedure does not:

• Full asset coverage: real property, personal property, financial accounts, rental income-generating assets, and more, transfers outside probate entirely.

• Incapacity protection: your successor trustee manages your estate without a court-supervised conservatorship.

• Privacy: no court filings, no public record, no public inventory of your estate value.

• Speed: trust administration typically takes weeks; even simplified probate takes months due to the waiting period, court scheduling, and documentary requirements.

• Flexibility: you control how and when beneficiaries receive their inheritance, including protections for minor sons and daughters, beneficiaries with special needs, or situations where family conflict is a concern.

• Multi-property coverage: your rental property, vacation home, and primary residence all transfer seamlessly under a single legal framework.

• Avoidance of statutory fees: full probate carries statutory fees calculated as a percentage of the gross estate value; a trust avoids those fees entirely.

The simplified procedure closes one door in the probate process. A trust locks that door permanently and covers every window, too.

What Happens to the Estate If You Do Nothing

If your loved one passes away without a trust and without a will, California's intestate succession laws determine who inherits. The court process begins: heirs must be located and notified, documentation must be gathered, and nothing transfers until the court says so. Even with the $750,000 simplified procedure, the family faces a waiting period, a court hearing, and the paperwork burden that accompanies estate administration during a time of grief.

Creating a trust before death eliminates that burden entirely. The successor trustee carries out the decedent's wishes without asking a judge for permission.

Frequently Asked Questions

Q: Does the $750,000 limit apply to the home's gross value or net value?

The petition requires that the value of the primary residence — excluding liens and encumbrances such as a mortgage — does not exceed $750,000. A probate referee appointed by the court performs the valuation as of the date of death.

Q: Can I use the simplified procedure for a rental property?

No. AB 2016's $750,000 probate threshold applies only to the decedent's primary residence. Rental property, investment real estate, and vacation homes do not qualify and may require full probate administration if they exceed the applicable thresholds.

Q: What if my home is worth more than $750,000?

If the primary residence exceeds $750,000 in market value, the estate does not qualify for the simplified procedure and must go through full California probate. A trust avoids this result entirely, regardless of home value.

Q: Do I need a probate attorney to use the DE-310 petition?

While the simplified procedure is less complex than full probate administration, it still involves court forms, notice requirements, probate referee coordination, a hearing, and recording procedures. Errors in documentation, notice, or valuation can result in court delays or denial of the petition.

Talk to a California Probate and Trust Attorney at Moravec Varga & Mooney

The new $750,000 procedure offers real relief for California families navigating the loss of a loved one — and understanding exactly when it applies, when it falls short, and how it interacts with your specific estate is where an experienced probate attorney makes the difference.

If you have questions about California estate planning, probate, trust administration, Medi-Cal planning, or your options as an heir, executor, or trustee, contact the California trust and probate attorneys at Moravec Varga & Mooney to schedule a telephonic consultation. Protecting your family's legacy starts with a conversation — and that conversation starts with a phone call.

Moravec Varga & Mooney handles California Probate, California Trusts & Wills, Trust Administration, Medi‑Cal Planning, Pre & Post Nuptial Agreements, and California Estate Tax matters, providing comprehensive support for individuals and families throughout the state.

📞 Call (626) 793-3210 | ✉ Email LV@MoravecsLaw.com

Moravec Varga & Mooney serves all counties in California, including Los Angeles, Riverside, San Bernardino, Sacramento, Santa Cruz, and beyond.