New Simplified Probate Procedures for Residences of less than $750,000

Assembly Bill 2016 (AB 2016), signed into law on September 21, 2024, and effective April 1, 2025, introduces significant amendments to California’s probate procedures, particularly concerning the administration of small estates. This legislation aims to streamline the transfer of decedents’ primary residences and reduce the necessity for formal probate proceedings in qualifying cases.

Key Provisions of AB 2016:

1. Increased Threshold for Small Estates: The bill raises the gross value limit for a decedent’s primary residence to qualify for simplified probate procedures from $166,250 to $750,000. This adjustment reflects California’s current real estate market and allows more estates to utilize expedited processes.
2. Focus on Primary Residences: AB 2016 specifically targets the decedent’s primary residence for these simplified procedures. Other real property holdings, such as secondary homes or investment properties, remain subject to traditional probate processes if their value exceeds existing thresholds.
3. Procedural Changes:
   • Petition Process: Successors can file a petition in the superior court of the county where the estate may be administered, seeking a court order that determines their succession to the primary residence. This process eliminates the need for procuring letters of administration or awaiting the probate of the will.
   • Notice Requirements: The petitioner must deliver notice of the petition to each heir and devisee named in the petition, ensuring transparency and the opportunity for interested parties to respond.
4. Repeal of Section 13158: The bill repeals Section 13158 of the Probate Code, which previously required compliance when an affidavit or declaration was furnished for personal property. This repeal simplifies the process for successors managing small estates.

Implications for Estate Planning:

While AB 2016 simplifies the transfer of primary residences under $750,000, it does not eliminate the need for comprehensive estate planning. Estates exceeding this threshold, or those containing multiple real properties, may still require formal probate or alternative planning strategies, such as trusts, to ensure efficient asset distribution. Additionally, the requirement to notify all heirs and devisees could lead to increased disputes, highlighting the importance of clear and thorough estate planning

AB 2016 modernizes California’s probate process by increasing the threshold for small estate procedures and focusing on primary residences. However, individuals should continue to engage in proactive estate planning to address assets beyond the scope of this legislation and to mitigate potential disputes among heirs.