New California Law Makes It Easier to Avoid Probate — But There’s Still a Better Way

Pleasanton estate planning attorney discussed AB 2016, a new law that exempts a primary home up to $750,000 from a lengthy probate process.

For Californians with modest property values: A new law that took effect on April 1 could make it easier to bypass the long and expensive probate process. But while this is a welcome update, there are still much smarter ways to plan your estate.

Let’s break down what’s changing, who it helps, and what you can do to make sure your estate doesn’t get stuck in probate court.

What Is Probate, Anyway?

Probate is the legal process where a court recognizes a person's death, validates a will if there is one, ensures creditors are paid, and oversees the distribution of someone’s assets after death. If there's no will, then state law decides who gets what.

In California, probate typically takes 12–18 months and can be costly — both financially ( 4 to 5% of the assets is a realistic scenario) and emotionally. That’s why many people look for ways to skip it altogether.

Big Change: What the New Law Does

Until now, California allowed “small estates” (under $184,500 in probate assets) to use a simplified process that skips full probate. But let’s face it — in a state where the average home is worth over $750,000, that number wasn’t cutting it.

Now, as of April 1, the new law (AB 2016) expands the definition of a small estate to include:

1. Primary Home: Up to $750,000 Now Qualifies

If your main residence is valued under $750,000 as of the date of death, your heirs may be able to transfer it without full probate.

2. Personal Property: Separate $200,000 Limit (estimate to be confirmed)

Personal property — think bank accounts, jewelry, stocks — can qualify under a separate $200,000 combined limit (note that 200k is an estimate as of the date of this writing with the final amount to be confirmed by the Judicial Council at the end of April). But this shortcut only applies if the home is also under $750,000. If the home’s value exceeds $750,000, the entire estate may still need to go through regular probate.

How it Works: Two Probate Shortcuts Now Available

Depending on the situation, your heirs may be able to use one of these fast-track options:

Small Estate Affidavit (For Personal Property)

If the estate includes less than around $200,000 in personal property, heirs can submit a simple affidavit to banks, brokers, etc., to claim those assets — no court required.

Short Petition (For Real Estate)

For homes worth up to $750,000, heirs must file a petition with the probate court. It’s more involved than the affidavit, but less time-consuming than full probate so long as it is not contested by the heirs that must be notified. This process usually takes 90 days or so, versus a over a year for regular probate.

Important Details to Know

• The primary home doesn’t have to be your actual residence at the time of death (so if you're in assisted living, it still counts).

• The $750,000 home limit will start adjusting for inflation in 2028. A formal appraisal will be needed to confirm the value at the time of death did not exceed the threshold.

• 40 days must have passed from the date of death before the petition can be filed with the Probate Court.

• Most will still need the help of an attorney to file the petition, serve all interested parties, adhere to all timeframes and appear at the court hearing.

• All heirs — even those left out — must be notified, which could lead to family drama or legal complications if the petition gets contested.

So... Should You Rely on This New Law?

For most people, absolutely not. While the update may prove to be helpful for some situations, it's no substitute for a proper estate plan which can avoid probate court altogether — regardless of your estate’s value. For instance, assets held inside of a living trust automatically avoid probate regardless of the value of those assets, and there is no probate process required to transfer trust assets after a death and no mandatory waiting period. Contrast that with relying on an exemption such as what has been set forth in the new law with the "hope" to avoid full probate. With that approach you're hoping that all of the facts align in the future so that your estate qualifies for that exemption. Then, even if it does, do you really want that uncertainty for your loved ones to have to analyze the facts with an attorney before knowing what to expect? Furthermore, even if the estate qualifies, are you okay with your loved ones still having to go through probate court anyway (albeit a potentially shorter one)?

Perhaps more importantly, relying on this new law does nothing if someone becomes incapacitated (meaning they are still living but unable to manage their property and financial affairs). If incapacity strikes, and someone does not have a living trust and/or power of attorney authorizing who can handle such matters on their behalf, then a conservatorship (otherwise known as a "living probate") may be required to authorize someone to act on behalf of an incapacitated person. That can be far more burdensome than a "death probate" after a person passes away.

Bottom Line

The new law is a step in the right direction — especially for Californians with moderate assets and no trust in place. But don’t rely on legal shortcuts. Hope is not a strategy, Instead, engage in proper estate planning now to ensure that you protect your legacy and save your loved ones lot of stress and uncertainly later.