What Assets Are Exempt from Probate in California?

When someone passes away in California, their estate may need to go through probate—a court-supervised process of distributing assets to heirs and settling debts. However, not all assets are subject to probate. In fact, many assets can transfer directly to beneficiaries without court involvement, saving time, money, and stress.

So, what assets are exempt from probate in California? Let’s break it down.

Why It Matters

Understanding what assets are exempt from probate can help you:

• Minimize the size of the probate estate,

• Speed up the distribution process,

• Reduce legal fees and court costs,

• Maintain privacy, since probate is a public process.

Key Categories of Probate-Exempt Assets in California

1. Assets Held in a Revocable Living Trust

One of the most effective estate planning tools is the revocable living trust. Any assets properly titled in the name of the trust during the grantor’s lifetime will bypass probate.

Examples include:

• Real estate

• Bank accounts

• Investment accounts

• Personal property

Why they're exempt: The trust, not the deceased individual, is the legal owner.

2. Jointly Owned Assets with Right of Survivorship

Property held as joint tenants or community property with right of survivorship automatically passes to the surviving co-owner without probate.

Examples:

• Joint bank accounts

• Real estate held as joint tenancy

• Vehicles with co-owners listed as joint tenants

Tip: The survivorship language must be explicit in the title.

3. Payable-on-Death (POD) and Transfer-on-Death (TOD) Accounts

Bank and financial accounts can be designated as POD or TOD, naming a beneficiary to receive the assets upon the account holder’s death.

Examples:

• Savings accounts

• Checking accounts

• Retirement accounts (see below)

4. Retirement Accounts and Life Insurance Policies with Named Beneficiaries

Assets such as:

• 401(k)s

• IRAs

• Life insurance proceeds

are exempt from probate as long as a beneficiary (other than the estate) is properly named.

5. Transfer-on-Death Deeds for Real Property

In California, a Revocable Transfer on Death Deed (TOD Deed) allows real estate to pass to a named beneficiary upon death without probate, so long as:

• It was properly recorded,

• The decedent still owned the property at death.

6. Small Estates Below the Probate Threshold

Under California Probate Code §13100, estates valued at $208,850 or less (or $69,625 for real property alone) may qualify for a simplified process known as the small estate affidavit (or a Succession to Real Property petition for real estate). If the Decedent died prior to April 1, 2025, then different thresholds will apply under AB 2016.

7. Vehicles with a Beneficiary Named on DMV Title (Transfer Without Probate)

California allows non-probate transfer of vehicles by submitting a REG 5 form to the DMV. The vehicle can be transferred directly to a beneficiary without court proceedings.

Important Caveat: Title and Documentation Must Be Correct

Even if an asset falls into one of the exempt categories, it may still require probate if:

• The beneficiary designation is missing or outdated,

• The co-owner has already died,

• The asset is still titled solely in the decedent’s name.

Here’s a simple and clear checklist-style chart comparing probate vs. non-probate (exempt) assets in California:

✅ California Probate vs. Non-Probate Assets Checklist

Asset Type	Subject to Probate?	Exempt from Probate If...
Revocable Living Trust Assets	❌ No	Titled in the name of the trust before death
Joint Tenancy Property	❌ No	Includes “right of survivorship” and the co-owner survives
Community Property with Right of Survivorship	❌ No	Properly titled with survivorship language
Payable-on-Death (POD) Bank Accounts	❌ No	A valid POD beneficiary is named
Transfer-on-Death (TOD) Investment Accounts	❌ No	A valid TOD beneficiary is designated
Retirement Accounts (e.g., 401(k), IRA)	❌ No	A beneficiary is someone other than the estate
Life Insurance Proceeds	❌ No	The policy lists a living beneficiary
Transfer-on-Death (TOD) Deed for Real Estate	❌ No	TOD deed is recorded, and the beneficiary is alive at death
Vehicles	❌ No	Transferred via DMV REG 5 form with proper documentation
Bank Accounts Without POD Designation	✅ Yes	Unless held in joint tenancy or trust
Solely Owned Real Property (No TOD or Trust)	✅ Yes	Unless it qualifies under the small estate exemption
Personal Belongings & Furniture	✅ Yes	Unless below the small estate limit
Estates ≤ $208,850	❌ No	Can use Small Estate Affidavit (Probate Code §13100)

Pro Tip:

To keep your estate out of probate, proper titling and beneficiary designations are essential. Simply having a will does not avoid probate!

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Final Thoughts

By understanding which assets are exempt from probate in California, you can create a more effective estate plan and potentially avoid the time and expense of probate altogether.

If you're managing a loved one’s estate or planning your own, working with an experienced California probate attorney or estate planner can ensure your assets are properly titled and your intentions are honored without unnecessary court involvement.

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.