California's New Probate Law (AB 2016): What Families Need to Know in 2025

By Anda Margine, Certified Estate Specialist | Bay Area Estate Solutions

If you've recently lost a parent or a spouse who owned a home in California, you may have heard that a new law changed the rules around probate. That's true — and depending on your situation, it could make a real difference in how you settle the estate.

California Assembly Bill 2016 (AB 2016) went into effect on April 1, 2025. It raises the threshold for a simplified probate process to $750,000 for a primary residence — which, given Bay Area home prices, is genuinely significant news for a lot of families.

This post breaks down what the law does, who it helps, and — just as importantly — what it doesn't do. As always, I'll give you the practical context from an estate real estate perspective, and I'll flag where you'll want to work with a probate attorney to navigate the legal side.

First: A Quick Reminder About What Probate Is

Probate is the court-supervised process of settling someone's estate after they pass away. It involves validating the will (if there is one), paying any debts, and officially transferring assets to the heirs. In California, probate is typically required whenever the total estate exceeds a certain threshold — and for most families, the biggest asset is the family home.

Before AB 2016, that threshold for real property was just $184,500. In a state where modest homes routinely sell for $600,000 or more, that meant almost every homeowner's estate was heading into full probate — a process that can take 12 to 18 months and generate legal fees of $30,000 or more.

AB 2016 changes that calculus for a meaningful number of families.

What AB 2016 Actually Changes

1. The simplified petition threshold is now $750,000 — for primary residences

This is the headline change. If your loved one's primary residence is valued at $750,000 or less at the time of death, heirs may now be able to transfer that property through a simplified court petition — without opening a full formal probate case.

The simplified process is called a Petition to Determine Succession to Real Property. It still involves the court — there is a hearing — but it sidesteps much of the full probate machinery: no 12-to-18-month wait, no statutory probate fees calculated on the gross estate value, and far less administrative overhead.

Important detail:

The $750,000 figure is the gross value of the property as of the date of death — not the equity after the mortgage. So if the home is worth $780,000 but there's a $200,000 mortgage, it would not qualify under this provision. The court looks at the appraised value, not what's owed.

2. There's still a waiting period

Heirs must wait at least 40 days after the date of death before filing the petition. This gives time to gather documents and ensures the process isn't rushed.

3. All heirs must be notified

AB 2016 added a transparency requirement: notice must be given to all intestate heirs, beneficiaries, and devisees named in the petition at least 15 days before the court hearing. If heirs are difficult to locate — or if family dynamics are complicated — this can create delays.

4. The small estate affidavit threshold also increased

Separately from the real property changes, AB 2016 also raised the threshold for the Small Estate Affidavit — the simpler process used to transfer personal property like bank accounts and vehicles. That threshold is now $208,850 (for deaths occurring April 1, 2025 through March 31, 2026). This is a separate process from the real property petition, but the two can be used together.

Who This Helps — And Who It Doesn't

This law is most helpful when:

The estate consists primarily of a single family home that was the decedent's primary residence
That home is valued at $750,000 or less at the date of death
The death occurred on or after April 1, 2025
The family wants to avoid the full cost and timeline of formal probate

This law does NOT apply when:

The property is not the decedent's primary residence (vacation homes, rental properties, and investment properties don't qualify — they still require full probate unless they were in a trust)
The home's gross value exceeds $750,000 — a threshold that still excludes a significant portion of Bay Area properties
The estate includes multiple real properties — only the primary residence can use this simplified process
The death occurred before April 1, 2025 — old rules apply

A note on timing:

If a death occurred before April 1, 2025 but probate hasn't been filed yet, the new rules may still apply — as long as the petition is filed after April 1, 2025. An attorney can confirm whether this applies to your situation.

What This Means If You're Selling an Inherited Home

For families who inherit a home through this simplified process, the practical steps are similar to a full probate sale — but the timeline is often shorter. A few things to keep in mind from a real estate perspective:

You'll still need the court order before the property can be transferred or sold. That order is what gives the heirs clear legal title.
A probate referee will appraise the property to establish its value as of the date of death. This is not the same as a traditional real estate appraisal — it's typically a comparable property analysis. The referee usually doesn't visit the property, but condition information and photos can be submitted.
Until the property is legally in the heirs' names, it's still part of the estate. Carrying costs — property taxes, insurance, utilities, maintenance — continue to accrue. The estate bears those costs during the process.
Vacant properties carry their own risks: security, insurance gaps, deferred maintenance. We always recommend getting a security assessment done early. Once the simplified petition is approved and you have clear title, the sale process is essentially the same as any other probate or trust sale — and that's where I come in.

What AB 2016 Doesn't Replace

It's worth being clear about something: AB 2016 is a helpful step, but it doesn't replace thoughtful estate planning.

A properly funded living trust still offers advantages that AB 2016 doesn't:

A trust covers all your assets — not just the primary residence
Trust transfers happen without court involvement at all, which means faster and completely private
Trusts also protect your estate during your lifetime in the event of incapacity AB 2016 is a meaningful improvement for families who didn't have a trust in place. But if your loved one had a trust, probate typically won't be necessary at all — which is a different conversation.

The Bottom Line for Families

California AB 2016 is real, practical relief for many families — particularly those dealing with a modest home as the primary estate asset. If your loved one's primary residence is valued at or under $750,000 and they passed away after April 1, 2025, it's worth having a probate attorney evaluate whether the simplified process applies to your situation.

It's also worth understanding that even a "simplified" court process has moving parts — waiting periods, notice requirements, court hearings, and appraisals. It's simpler than full probate, not simple. Having the right professionals around you matters.

If you're at the point of figuring out what to do with an inherited property — whether through this simplified process or through full probate — I'm happy to be a resource. I work specifically with estate properties in the East Bay, and I can help you understand what the property is worth, what the sale process looks like, and how to approach it in a way that honors the family and protects the estate.

How Bay Area Estate Solutions Can Help

Understanding a new law is one thing — knowing how it applies to your specific property and situation is another. If your loved one passed away recently and left behind a home in the Bay Area, I can help you understand what the property is worth, whether the simplified AB 2016 process may apply, and what the real estate side of the estate looks like from here.

As a C.A.R. Certified Probate and Trust Specialist serving Alameda County, Contra Costa Countyand the greater Bay Area, I bring both the expertise and the compassion this process requires.

When you work with Bay Area Estate Solutions, I can provide a professional Broker Price Opinion establishing the fair market value of the property at the date of death — a critical document for the court appraisal process and your tax records. I also work alongside a trustednetwork of Bay Area probate attorneys and can connect you with the right counsel if you don'talready have one.

Disclaimer

This post is for general informational purposes only and does not constitute legal advice. Estate laws are complex and fact-specific. Please consult a licensed California probate attorney regarding your individual situation. I'm happy to provide a trusted local referral.

Anda Margine is a C.A.R. Certified Probate and Trust Specialist and licensed Realtor with Bay Area Estate Solutions, a DBA of Keller Williams Advisors, serving Alameda County, Contra Costa County, and the greater Bay Area. She helps families navigate inherited property, probate, and trust estate sales with clarity and confidence.

(510) 516-6507 | Contact@BayAreaEstateSolutions.com Schedule a Free Consultation