Here’s some good news for those who inherit property not in a trust. If you are either a named beneficiary in a will, or the heir of someone who died without a will, this may benefit you.
Effective April 1, 2025 – there is a new law in California that affects probate and real estate inheritance.
AB 2016 – New Limit for Avoiding Full Probate is $750,000
California Assembly Bill 2016 (AB 2016) changes the probate process if you inherit a primary residence worth up to $750,000. You can avoid full probate, and instead use a streamlined process, which can save a lot of time and money.
Before AB 2016, the maximum value to avoid probate was only $184,500.
Simplified Process
Instead of going through full probate, which often takes months to years, and costs thousands of dollars, the streamlined process is much easier. You simply file a Petition to Determine Succession to Primary Residence with the Superior Court in the County where the residence is located. In this Petition, you claim ownership of this residence because you are either a beneficiary in the deceased person’s will, OR an heir of a the person who died without a will.
After you file this Petition, a County appraiser will evaluate the residence. If the value doesn’t exceed $750,000, you can bypass the costly and lengthy formal probate process.
What to Do if the Value Exceeds $750,000
If the value of the primary residence you inherit is worth over $750,000, you will need to go through formal probate. Here’s a California Courts self-help guide that describes the process in detail. From start to finish, formal probate usually lasts 9-18 months, and costs thousands, if not tens of thousands of dollars.
When Did the Law Change?
AB 2016 and the new $750,000 maximum applies if the date of death is April 1, 2025 or later.
What If the Property is Held in a Trust?
If you find out that the primary residence is part of a trust, then you can avoid probate entirely. Read my article about how to manage real estate inherited through a trust.
For More Information
If you have an legal questions, please contact an attorney. If you have questions about real estate ownership, or the value of your property, I’m happy to help! Contact me anytime.
