California’s Assembly Bill 2016 (“AB 2016”) enacted significant changes to the probate process for small estates, particularly those involving real property. Signed into law on September 21, 2024, and took effect April 1, 2025, AB 2016 amended several sections of the Probate Code (including §§ 13100, 13101, 13150–13152, 13154, and repealing § 13158).
In simple terms, the new law raised the value cap for certain real property transfers from roughly $184,500 to $750,000 but limited the same by property classification. Specifically, the new law removed the ability to use this procedure for estates not involving a personal residence.
This might seem miniscule, but recent consortiums of attorneys and legal scholars have come to the conclusion that this removal of real property not used as a primary residence will subject many estates to a full probate.
Here is the scenario: Decedent maintained a trust and was diligent in keeping her primary residence held in the trust name. That said, throughout the years she either forgot to title or removed from title her trust as the owner of a second investment piece of property. In the old days, pre-April 1, 2025, probate practitioners would use the ancillary probate procedure for succession to small estate to transfer the second property without a formal probate so long as that property was valued below $184,500 at the time of death. This procedure is no longer available as of the new laws passing. Now, if the property is valued above the affidavit of small estate value (now $69,500) the estate is without an ancillary proceeding (except for a Heggstad Petition if the trust qualifies).
That said, the new law does help estates with a primary residence as the sole or majority asset of the estate by raising the real property value cap to $750,000 for a Petition for Succession. It’s important to note that the $750,000 limit is based on the property’s gross value (fair market value without deducting any mortgage) and will be subject to periodic inflation adjustments after 2028. This change reflects a legislative intent to modernize probate thresholds in line with California’s high property values, potentially reducing court backlogs and probate costs for middle-class families.
As stated herein, AB 2016 exclusively benefits estates that are primarily limited to the decedent’s primary residence in California. In practical terms, this means rental properties, vacation homes, commercial real estate, or any real estate the decedent did not occupy as their main home do not qualify for the $750,000 small estate shortcut.
This focus on a single principal residence both giveth and taketh away. On one hand, it extends probate relief to many family homes that would otherwise face probate. On the other hand, estates that include other real property will have a split administration: the primary home can transfer via the simplified process, but additional real estate generally must be probated (absent other planning).
