California’s probate landscape has undergone significant changes, creating new opportunities for streamlined estate transfers. The passage of Assembly Bill No. 2016 (AB 2016) on September 21^st, 2024, signed by Governor Newsom, modernizes procedures for property transitions, including certain provisions that benefit estates of varying sizes. While the bill’s main change raises the small estate threshold for primary residences to $750,000, its broader reforms to affidavits, petitions, and notice requirements offer advantages for those navigating complex inheritances.

The most immediate impact of this new law is the higher threshold for primary residences. This change reflects California’s rising home values and streamlines the probate process for many families. Previously, successors faced full probate for any real property exceeding $166,250; however, AB 2016 results in the following changes.

Streamlined Estate Transfers for Primary Residences (Up to $750,000) 

AB 2016 simplifies the probate process by replacing the previous $166,250 limit for real property which could be transferred through a petition to determine succession to primary residence (form DE-310). However, this higher $750K threshold does not extend to other types of real estate, such as rental properties, second homes, or commercial real estate, which may still require probate. Additionally, personal property (e.g., bank accounts, vehicles) remains subject to the original $166,250 limit for affidavit eligibility.

According to California Probate Code §13050, the assets include joint tenancy property, life estates, assets passing to a surviving spouse, multiple-party accounts (such as joint bank accounts), vehicles, vessels, manufactured homes, military benefits, and unpaid wages up to $16,625. So, even if a primary residence approaches the $750,000 limit, other excluded assets will not affect eligibility for the simplified process. 

Because these exempt assets qualify for affidavit transfers, the distinction between asset classes is key. Affidavits (notarized sworn statements filed after a 40-day waiting period with a death certificate) can bypass full probate for qualifying assets. The law explicitly prevents ‘double-dipping’; once real property is included in a probate petition, it cannot also be transferred via affidavit. This also provides clear guidance for heirs: petitions are required for primary residences above the threshold, while affidavits remain available for eligible personal property.

To illustrate how this works in practice, imagine a decedent’s estate comprising a $600,000 primary residence and $50,000 in liquid assets. In this case, the successor would:

• File a petition for the home, and
• Use an affidavit for the bank accounts (since personal property is under $208,850 – Section 13100).

In other words, AB 2016 aims at balancing both protections and practicality. By requiring court oversight for significant assets like family homes while preserving streamlined affidavit procedures for modest personal property, the bill safeguards heirs’ interests in high-value transfers and reduces unnecessary bureaucratic burdens for straightforward assets.

Mandatory Notice to Heirs and Devisees  

As already mentioned, AB 2016 introduces another critical procedural safeguard by requiring successors to formally notify all heirs of the property transfer within 5 business days (§13151(b)). By ensuring all interested parties (even those not actively contesting the transfer) receive prompt notification, the likelihood of disputes emerging later in the process is lower.

Furthermore, consequences for non-compliance are significant: failing to provide proper notice could invalidate an otherwise valid transfer petition. For context, even if all heirs agree to the transfer of an estate with a $500,000 family home, the successor must still formally notify them immediately after filing. This aligns with the bill’s emphasis on transparency, as it mandates documenting all potential claimants in the initial petition (§13152(a)(7)).

For attorneys, trustees, and professional fiduciaries handling probate matters, this underscores two key priorities: first, meticulous documentation of all notice deliveries (via certified mail or other verifiable methods), and second, treating notice as a non-negotiable step regardless of family dynamics. The rule might add an extra procedural layer, but it ultimately serves to prevent costly challenges by demonstrating strict adherence to due process from the beginning.  

A Broader Definition of “Primary Residence” in California

AB 2016 expands the definition of “primary residence” under Probate Code §13150(b)(2) to include not only the home where the decedent died, but any property that served as their principal dwelling at any time. This means a longtime family home remains eligible for these streamlined transfer procedures under the new $750,000 threshold, even if the decedent relocated (e.g., to assisted living) and no longer occupied the property at the time of their death. 

Crucially, the law applies to all probate proceedings filed on or after April 1, 2025, regardless of when the decedent passed away. For deaths occurring before this date where probate hasn’t yet been initiated, successors may still utilize these provisions once the law takes effect.

Inflation Adjustments and the Future  

The $750,000 threshold took effect on April 1, 2025, and will remain fixed until March 31, 2028. Thereafter, it will adjust every three years based on the Judicial Council’s review, ensuring alignment with California’s real estate market trends. However, there are some key implications for this timing:

• For deaths between 4/1/2025 and 3/31/2028: All petitions automatically use the $750,000 threshold.
• For deaths before 4/1/2025: If probate is filed after 4/1/2025, the new threshold applies (e.g., a 2024 death with a May 2025 petition qualifies).

Navigate California’s Probate Process, Law, and Estate Planning with Confidence 

At KJMLAW Partners, we understand that modern estate planning requires both mastery of evolving laws and a commitment to your family’s future. As California’s probate landscape shifts, our team provides the clarity and strategic guidance you need. With decades of combined experience in probate and trust administration, we help clients harness these legislative changes to their advantage. And when disputes arise, we protect your interests with assertive yet compassionate advocacy, drawing on our deep knowledge of both courtroom procedures and out-of-court resolutions.

Let us help you turn legal reforms into lasting peace of mind. Contact KJMLAW Partners today at 626-565-5680 for a consultation. Together, we’ll ensure your legacy is preserved with the care and foresight it deserves.