Why the New $750K Probate Law Isn’t What You Think
On April 1, 2025, California enacted a change to its probate laws that has been widely misunderstood. Assembly Bill 2016 (AB 2016) was introduced as a reform aimed at simplifying the transfer of real estate after death. Specifically, it raised the threshold for using a shortened probate procedure when dealing with a decedent’s primary residence. While this may sound like a breakthrough for families hoping to avoid probate altogether, the truth is more nuanced. The law does provide relief in certain situations—but it is far from a comprehensive solution.
To understand what’s really changed, it helps to first revisit how probate works in California. When someone dies owning property solely in their name—with no trust in place and no beneficiary designation—their estate typically must go through probate. This process is often slow, expensive, and public. Before AB 2016 took effect, the law required full probate for any real property valued above $184,500. That meant even modest homes triggered court involvement, attorney’s fees, and months of delays.
AB 2016 attempts to ease that burden by raising the limit. Now, under the new law, families can use a simplified procedure—formally called a Petition to Determine Succession to Real Property—if the decedent’s primary residence is valued at $750,000 or less. This is not a loophole or a magic workaround. It’s a narrowly tailored shortcut that only applies under very specific conditions. The home must be the decedent’s primary residence, the only property in the estate, and its value must fall below that $750,000 threshold based on an official court-ordered appraisal. Additionally, the rest of the estate—any bank accounts or liquid assets—must total less than $208,850 to qualify for California’s Small Estate Affidavit process.
Even when all those criteria are met, this is not a quick or easy path. Families must still obtain a valuation from a probate referee, which can take up to two months. They must file court petitions, pay filing fees (which start around $450), and send notice to all interested parties. There’s also a waiting period of several more months just to get a hearing date. Once the judge signs the order, families must then pay to obtain a certified copy and file it with the county to finalize the transfer of the property.
During that time, critical expenses don’t pause. Mortgages still need to be paid. Utilities continue to run. Property taxes accrue. But access to estate funds is frozen until the court allows the transfer to proceed. If the family is also trying to claim funds from bank accounts, they’ll likely need to wait for the court’s green light on the home before legally asserting that no probate is underway. And if the court-appointed referee concludes the home’s value exceeds $750,000—even by one dollar—the simplified process is no longer available. In that case, the estate is forced back into full probate, complete with statutory attorney’s fees based on the gross value of the assets, regardless of debts or liabilities.
The bottom line is that AB 2016 is a patch, not a plan. It exists to offer modest relief to families who find themselves without proper estate planning already in place. It is not designed to replace a real strategy for wealth transfer or asset protection. And its benefits can be lost entirely due to factors outside a family’s control—like a market increase in home value or a minor miscalculation by a probate referee.
For those who want true protection from probate, the answer remains the same: a properly drafted and fully funded revocable living trust. A trust allows individuals to decide how their property is distributed, who handles the process, and under what conditions it all happens. It bypasses the court system entirely, shields family members from unnecessary fees and delays, and keeps affairs private. Trusts can accommodate complex family situations, plan for minors, protect spendthrift beneficiaries, and allow for staggered or conditional distributions. Most importantly, they allow families to act quickly and efficiently when a loved one passes away, without relying on judges, appraisers, or probate calendars.
In summary, AB 2016 provides a useful but limited pathway for avoiding the worst parts of probate—if, and only if, a very narrow set of criteria are met. It does not replace the certainty, flexibility, and control of a living trust. Homeowners who want to protect their property, ensure smooth transitions for their heirs, and avoid the stress and cost of probate should still plan ahead and consult an experienced estate planning attorney. Proper planning is not just a legal advantage—it’s peace of mind for those left behind.
Learn More: Can Your Bank Call Your Mortgage Due When You Transfer Property?
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