Why Secondary Properties Still Go Through Probate
Background: California's Previous Probate Rules
Before April 2025, California’s probate system was fairly strict. If a decedent died with real property worth more than $184,500 — and that property wasn’t held in a trust — it triggered a full formal probate. This meant a court-supervised legal process involving multiple hearings, months of delay, and substantial statutory attorney’s fees, all based on the gross value of the property.
The system often resulted in unnecessary court involvement for estates with modest real property interests.
AB 2016: What the Law Promised
Assembly Bill 2016 (AB 2016) was enacted to alleviate this burden — at least partially.
Effective April 1, 2025, AB 2016 created a streamlined path for heirs to inherit a decedent’s primary residence valued at up to $750,000. Under this law, heirs can file a Petition to Determine Succession to Real Property and bypass formal probate.
This was seen as a significant expansion of California’s small estate procedures — especially in light of soaring real estate values — and many believed it would drastically reduce the need for probate in more cases.
What AB 2016 Actually Delivers in Practice
Now that AB 2016 is active in courts statewide, its limitations have come into sharp focus.
The streamlined process only applies to a primary residence. Not just any property. Not a second home. Not a rental condo. Not a cabin inherited from a parent. Not a vacation property.
If the decedent did not actually live in the property as their main residence, then the shortcut doesn’t apply — even if the value is under $750,000.
The Practical Fallout: Probate Is Back for Secondary Properties
The implications are significant. Under the old rules, a family could often use the simplified petition process for any real property under $184,500 — regardless of how the decedent used the property.
Now, with the new $750,000 cap only applying to a primary residence, families with second homes or inherited properties may find themselves facing full probate proceedings, even if the property's value is relatively modest.
That rental condo from the 90s?
That inherited mobile home in the desert?
That vacation cottage that’s been in the family for decades?
All of these may now be subject to formal probate.
And that brings with it statutory fees, mandatory hearings, public records, long delays, and the emotional burden of navigating court while grieving.
Is There Any Shortcut Left for Secondary Properties?
Technically, yes — but it’s largely theoretical.
California still allows for an Affidavit re: Real Property of Small Value for estates where the real property interest is worth less than $69,000. This process typically does not require a court hearing and can transfer title with minimal procedural delay.
But the limit is so low that it excludes virtually all real estate in California.
To put it plainly: unless the property is a few square feet of land in an unincorporated part of the high desert, this process is unlikely to apply.
AB 2016: A Give and a Take
AB 2016 does provide relief — but only for a very narrow category of estates: a decedent with one property, who lived in that property as their primary residence, and whose home is worth under $750,000.
In all other cases, it arguably removes a useful tool that was previously available to estates with modest property holdings. By introducing a higher-value threshold but limiting it to one specific type of real property, the law giveth and the law taketh away.
What Should California Property Owners Do Now?
The message from AB 2016 — and from the courts — is clear: plan ahead.
If you own any real property that is not your primary residence, that property needs to be placed in a trust. Otherwise, it may be subject to a costly, time-consuming probate.
With a properly drafted trust, you can:
Avoid court involvement
Prevent statutory attorney’s fees
Transfer assets privately and efficiently
Avoid sudden rule changes from future legislation
Planning now not only spares your loved ones from legal headaches, but ensures your wishes are carried out without court interference.
Conclusion
AB 2016 is not a universal solution to California’s probate problems. For some, it offers a much-needed reprieve. For others, it represents a narrowing of options — and an increased risk of being pulled into probate despite modest holdings.
California residents should view AB 2016 as a reminder, not a resolution. The best way to avoid probate isn’t hoping you qualify for a loophole — it’s creating an estate plan that keeps your family out of court altogether.