California Raises the Small Estate Affidavit Limit for Primary Residences to $750,000

Effective April 1, 2025, California has enacted Assembly Bill 2016 (AB 2016), significantly increasing the threshold for simplified probate procedures concerning a decedent's primary residence. Under this new legislation, heirs can utilize a streamlined court process to transfer ownership of a primary residence valued up to $750,000.

Key Highlights of AB 2016:

• Increased Threshold: The gross value limit for a decedent’s primary residence to qualify for a simplified probate process has been raised to $750,000.

• Applicability: This change applies to estates where the decedent passed away on or after April 1, 2025.

• Simplified Transfer Process: Heirs can file a "Petition to Determine Succession to Real Property" under Probate Code Sections 13150–13154, allowing for a more efficient transfer of the primary residence without undergoing full probate.

Important Considerations:

• Primary Residence Only: The increased threshold specifically pertains to the decedent's primary residence. Other assets, such as bank accounts or personal property, remain subject to the existing small estate affidavit limit, which has been adjusted to $208,850 as of April 1, 2025.

• Court Involvement: While the process is simplified, it still requires filing a petition with the probate court, obtaining an appraisal, and attending a court hearing.

• Estate Planning Implications: Despite the increased threshold, establishing a living trust remains a prudent strategy for comprehensive estate planning. A trust can facilitate the transfer of various assets, including those exceeding the new limit, and can provide additional benefits such as privacy and avoidance of court proceedings.

Conclusion:

Although the enactment of AB 2016 offers a more cost-effective avenue for heirs to inherit primary residences without the complexities of full probate, it still requires a court proceeding, and most homeowners in Southern California will not be able to take advantage of it because their primary residence is worth more than the $750,000 limit.   A trust-centered estate plan remains the most effective way to ensure a seamless transfer of wealth without probate or court proceedings—particularly when multiple real estate holdings or minor beneficiaries are involved.