California AB 2016: How to Avoid Probate for Your Primary Residence (Valued Up to $750,000)

Estate planning in California just got a big change! With the enactment of Assembly Bill 2016 (AB 2016), heirs of decedents can now inherit a primary residence valued up to $750,000 through a streamlined court petition—without a full probate. Let’s explore what this means for you and your loved ones.

Who is eligible?

• The property of the decedent must be the primary residence and it must be valued at $750,000 or LESS.

• To use it, you’d likely need to obtain a new appraisal of the property.

How does it work?

• Instead of filing for a full probate, your attorney would file a petition to determine succession. Your attorney will use the appraisal to prove the value of the estate. If approved by the court, ownership can be transferred without a full probate.

Limitations

• This only works for primary residences.

• This does NOT work if there are other assets valued at over $184,500.

• Succession must be clear. If there are disputes about who’s going to take ownership, this doesn’t work. But if the property is going equally to the “closest living relative,” then it’s clear. (If there’s a surviving spouse and a kid, and the goal is to get it to the kid, this isn’t going to work.)

• This is only applicable for people who have passed away on or after April 1, 2025.

What should you do?

As always, the goal is to avoid probate in California, and you can do that by establishing a comprehensive estate plan that includes a trust. That way, you determine who receives your property AND you avoid going through probate. But this is an important California probate law update for 2025, and it does help people avoid probate for primary residences in California that are valued at less than $750,000.

If you’re not sure if you should rely on this law or delve into a comprehensive estate plan that includes a trust, will, and powers of attorney - contact me for a consultation!