The $750,000 Probate Shortcut: Understanding California AB 2016’s Rules for California Homeowners

24 Mar The $750,000 Probate Shortcut: Understanding California AB 2016’s Rules for California Homeowners

Key Takeaways

• California AB 2016, effective April 1, 2025, lets heirs skip full probate for a primary residence valued at $750,000 or less.
• The process uses a Petition to Determine Succession to Real Property — faster and cheaper than formal probate, but still requires a court hearing.
• It only applies to the decedent’s primary residence. Vacation homes, rentals, and investment properties don’t qualify.
• For personal property (bank accounts, vehicles), a separate Small Estate Affidavit covers estates up to $208,850 (for deaths April 1, 2025 – March 31, 2026).
• A living trust still beats AB 2016 on privacy, speed, multiple-asset coverage, and family peace of mind.

California AB 2016 – A New Shortcut for California Homeowners

For decades, California families faced an all-or-nothing choice after losing a loved one who owned a home: either the house was held in a living trust — and it transferred smoothly — or it went through full formal probate. That meant 12 to 18 months in court, public filings, and statutory fees that could exceed $30,000 or $40,000, depending on estate value.

That gap just got smaller. California Assembly Bill 2016 (AB 2016), signed into law in 2024 and effective April 1, 2025, created a meaningful middle ground. For primary residences valued at $750,000 or less, heirs can now use a simplified court petition to transfer ownership — without triggering the full probate machinery.

This is welcome news for middle-class California families. A lot of homes in the Inland Valley, the East Bay, the Central Valley, and parts of Sacramento fall right in that range. AB 2016 gives those families a real option they didn’t have before.

But it’s not a replacement for thoughtful estate planning. Here’s exactly how AB 2016 works, where it falls short, and when a living trust still makes more sense.

How the Law Works

AB 2016 amends California Probate Code §§13150–13152 to significantly expand who qualifies for simplified probate procedures. Before the law took effect, the threshold for using a simplified real property petition was just $184,500 — a number that had become almost meaningless in California’s housing market. AB 2016 raised that ceiling to $750,000, but with an important catch: the property must be the decedent’s primary residence.

The process is called the Petition to Determine Succession to Real Property. It’s a court procedure, so there is still a hearing involved. But it sidesteps the full administration process — no Letters Testamentary, no formal probate creditor claims period, no probate referee fees on the full estate, no 12-to-18-month wait.

To qualify under AB 2016, the estate must meet all of these requirements:

• The decedent’s primary residence was located in California
• The gross value of that residence does not exceed $750,000 (as of the date of death)
• The decedent did not hold the property in a living trust at death
• At least 40 days have passed since the date of death
• All heirs and beneficiaries are notified of the petition (a new requirement added by AB 2016)

One important detail: the $750,000 threshold applies to gross value, not equity. If a home is worth $700,000 and carries a $400,000 mortgage, the gross value is still $700,000 for AB 2016 purposes. The mortgage does not reduce the number.

Primary Residence Only — This Part Matters

AB 2016 is targeted. It applies only to the property the decedent used as their main home in California. If a family member owned multiple properties — a primary home in Concord plus a rental in Stockton — only the primary residence qualifies.

These property types do not qualify under AB 2016:

• Vacation homes or seasonal properties
• Rental properties (even single-family rentals)
• Investment properties
• Commercial real estate
• Vacant land

The statute defines the qualifying property as the decedent’s “main home” in California. There is some ambiguity in practice: what happens if an older adult spends their final months in a nursing facility and hasn’t lived in the house for a year? The California Courts self-help center clarifies that the law applies to “the person’s main home,” and the legislative intent was to capture the family home even when the decedent had temporarily relocated for care.

Still, borderline situations are worth thinking through carefully before filing. If there is any doubt about whether a property qualifies, confirming primary residence status before proceeding is the right move.

AB 2016 also does not raise the value threshold for non-primary-residence real property. Other real estate owned by the decedent remains subject to the older, lower thresholds — or full probate if the value exceeds those limits.

Step-by-Step: How the Petition Process Works

California Probate Code §§ 13150–13157 set out the petition process. Here’s how it works in practice:

Step 1: Wait the Required 40 Days

California law requires at least 40 days to pass after the decedent’s death before the petition can be filed. This waiting period is mandatory and cannot be waived.

Step 2: Get the Property Appraised

A court-appointed probate referee will appraise the property to determine its fair market value as of the date of death. The appraisal must confirm that the gross value is at or below $750,000. If the appraisal comes in even a dollar above that threshold, it generally requires full probate.

Step 3: Prepare the Petition

The Petition to Determine Succession to Real Property (Form DE-310) must include: a full property description, the decedent’s name and date of death, whether they died with or without a will, the names and relationships of all heirs and beneficiaries, and an attached copy of the appraisal.

Step 4: Notify All Heirs

This is a new requirement added by AB 2016. Every heir, beneficiary named in a will, and intestate heir must receive formal notice of the petition. If any of them object, the court will have to sort it out, which can add time and cost.

Step 5: Attend the Court Hearing

File the petition with the probate court in the county where the decedent lived or where the property is located. The court schedules a hearing. If everything is in order and no objections arise, the judge issues an order determining succession — effectively a title transfer.

Step 6: Record the Order

Once the court issues the order, record it with your California county recorder’s office to update the property’s title. That completes the transfer. No additional probate proceedings are required for this property.

The entire process typically takes several weeks to a few months — far shorter than formal probate. Filing fees are significantly lower than full probate costs, and there are no statutory executor or attorney fees on the property.

Why a Living Trust Still Makes More Sense for Most Families

AB 2016 is a useful tool. But it is not a substitute for a living trust. Here is why:

It Still Requires a Court Hearing

The AB 2016 petition is simpler than a full probate proceeding, but it still goes to a judge. A living trust transfers property in days or weeks — with no court involvement at all.

It Covers Only One Property

A trust covers everything titled inside it: your home, your bank accounts, your investment accounts, a rental property, and a vacation property. AB 2016 covers exactly one asset — the primary residence — and only if the value is under $750,000.

It’s Not Private

Court filings are public record. Anyone can look up who inherited what and for how much. A living trust keeps all of that private.

Multiple Beneficiaries Create Risk

If siblings disagree about what should happen to the property, a court petition can get complicated fast. A living trust with clear distribution instructions and trustee authority gives far fewer opportunities for conflict.

No Help During Incapacity

AB 2016 only comes into play after death. A living trust protects you while you’re alive — your successor trustee can step in immediately if you become incapacitated, without a court-ordered conservatorship.

Bay Area Home Values Often Exceed $750,000

In Contra Costa County, Alameda County, and Tri-Valley communities, many family homes are already valued above the $750,000 threshold. If a property appraises at $755,000, AB 2016 does not apply at all — the estate goes to full probate.

AB 2016 is a good option for the right situation. A living trust is the right plan for almost every California homeowner.

AB 2016 Petition vs. Living Trust: Side-by-Side

Feature	AB 2016 Petition	Living Trust
Cost	Court filing fees + probate referee appraisal (typically several hundred to ~$1,000+)	Flat fee to prepare; no court costs for covered assets
Timeline	Several weeks to a few months (court hearing required)	Days to weeks; no court hearing
Property Types	Primary residence only; under $750,000	All assets titled in the trust
Multiple Beneficiaries	All heirs must be notified; disagreements can stall the process	Trustee distributes per your instructions; disputes less likely
Privacy	Court filing is public record	Completely private; no public filing
Control During Lifetime	No effect — only applies after death	Full control; you manage trust assets as trustee

How to Decide: AB 2016 vs. a Living Trust

Use AB 2016 if:

• No trust exists
• You’re dealing with one property only
• The home is under $750,000
• The family situation is simple (no disputes expected)

Use a living trust if:

• You own multiple assets or properties
• Your home may exceed $750,000
• Privacy matters to you
• You want to avoid any court process
• You want protection during incapacity

AB 2016 solves a problem after death. A trust prevents the problem entirely.

The $208,850 Small Estate Affidavit for Personal Property

AB 2016 also includes an updated threshold for the Small Estate Affidavit under California Probate Code §§ 13100–13101. For deaths occurring on or after April 1, 2025, successors can use this simplified affidavit to transfer personal property — bank accounts, vehicles, investments, personal belongings — with a gross value of $208,850 or less, without going to court.

This is a separate process from the AB 2016 real property petition. The two can be used together:

• Use the AB 2016 petition to transfer the primary residence (if it qualifies)
• Use the Small Estate Affidavit to transfer qualifying personal property separately

Important distinctions for the Small Estate Affidavit:

• It covers personal property only — not real estate of any kind
• The 40-day waiting period applies here, too
• Assets that already have a beneficiary designation (like IRAs, 401(k)s, and life insurance with named beneficiaries) do not count toward the $208,850 limit
• All successors entitled to the property must sign the affidavit

Note: The personal property threshold adjusts periodically. For deaths on or after April 1, 2026, the figure increases to $239,700. Always confirm the current threshold based on the decedent’s date of death.

You can access the current affidavit form and guidance directly through the California Courts self-help center.

Illustrative Examples

The following scenarios are for illustrative purposes only and do not represent real Guideway clients.

When California AB 2016 Works Well

Consider a Pittsburg homeowner who passes away with a primary residence appraised at $580,000. She has no living trust. Her two adult children are her heirs. They wait 40 days, hire a probate referee to appraise the property, and file a Petition to Determine Succession with the Contra Costa Superior Court. All notices are sent—no one objects. A few months later, the court issues an order. The children record it with the county recorder and transfer the title. Total cost: a fraction of what formal probate would have run. Total time: roughly two to three months.

When California AB 2016 Falls Short

Consider a Walnut Creek homeowner who passes away with a primary residence appraised at $820,000, a rental property in Antioch valued at $540,000, and $90,000 in bank accounts. None of her assets is in a trust. AB 2016 does not apply to the primary residence — it exceeds $750,000. The rental property is not a primary residence, so it doesn’t qualify either. Both properties go to full California probate. Combined statutory fees (attorney + executor) on both properties run well into the tens of thousands of dollars. A living trust set up years earlier would have transferred all of it privately, in weeks, without any court involvement.

When a Combination Works

Consider a Stockton homeowner who passes away with a primary residence appraised at $430,000 and $140,000 in bank accounts. No trust. Her son is her sole heir. He uses the AB 2016 petition for the home and the Small Estate Affidavit for the bank accounts. Both processes run in parallel. Within a few months, he has transferred everything — without formal probate on either asset. This is AB 2016 at its best: a targeted tool that closes a real gap for a family who didn’t plan.

Key Terms

Term	Definition
California AB 2016	California Assembly Bill 2016, signed in 2024 and effective April 1, 2025. It allows simplified probate transfer for primary residences valued up to $750,000.
Petition to Determine Succession to Real Property	A simplified court procedure under California Probate Code §§13150–13152 that transfers real property without full probate.
Small Estate Affidavit	A simplified process to transfer personal property (not real estate) valued at $208,850 or less without probate, under Probate Code §13100.
Primary Residence	The home where the decedent lived as their main dwelling. Vacation homes, rentals, and investment properties do not qualify.
Probate Referee	A court-appointed appraiser who determines the fair market value of estate assets as of the date of death.

Take the Next Step

California AB 2016 is a helpful fallback. But it only works in narrow situations—and only after the fact.

If your home is close to the $750,000 threshold, or you have more than one asset, the difference between having a plan vs. not having one can mean:

• Months vs. weeks
• Public court process vs. private transfer
• Family friction vs. clean execution

The right move is simple: get clarity before it matters.

Guideway helps Bay Area families put the right structure in place—living trusts, deeds, and supporting documents—so everything transfers cleanly without court involvement.

We can’t give legal advice, but we can help you get your documents prepared correctly and efficiently.

Schedule a consultation:

• Walnut Creek: (925) 407-1010
• Oakland: (510) 452-2320
• Tri-Valley: (925) 479-9600
• San Francisco: (415) 729-7232

Or start here: guidewaylegal.com. We can’t give legal advice, but we can help you get your documents done right.

We are not attorneys. We can only provide self-help services at your specific direction. Guideway Legal Document and Mediation Services is not a law firm, and we cannot represent customers, select legal forms, or give legal or tax advice. Services are provided at customers’ requests and are not a substitute for the advice of a lawyer. Because legal needs vary from individual to individual, you should seek the advice of a licensed attorney if you have any questions regarding the selection of appropriate forms. You can find an attorney at a State Bar approved Lawyer Referral Service. Prices do not include court costs. Guideway is based at 925 Ygnacio Valley Road, Suite 204, Walnut Creek, CA 94596. We are registered as Contra Costa County LDA #188 and Alameda County LDA #169, expiry January 2027.