How California’s New Law Makes Probate Easier for Homeowners in 2025
If you own a home in California, there’s some really good news you should know about. A big change to the state’s probate laws is coming in 2025, and it could make a huge difference for your family down the road. Thanks to Assembly Bill 2016 (AB 2016), if you pass away after April 1, 2025, and your primary residence is valued at $750,000 or less, your loved ones may be able to transfer that property without going through a full, formal probate case.
And if you’ve ever heard someone talk about how miserable probate is, they weren’t exaggerating. The old process is slow, expensive, and stressful. AB 2016 opens a faster, simpler path, but only if your estate fits under these new rules. Knowing where you stand now can save your family a lot of frustration later.
At John Park Law, we’re here to help you protect what matters most—your business, your family, and your future. Our California estate planning attorneys bring decades of experience to the table.
What Is Probate, and Why Do People Try to Avoid It?
Probate is the legal process where a court steps in to make sure your debts are paid and your assets go to the right people after you die. Sounds fair in theory, but in reality, probate in California is famously slow and costly. Even a simple estate can take a year or more to get through the system. During that time, your assets are frozen. Your heirs can’t sell your house, access bank accounts, or even take possession of personal items without the court’s permission.
That’s why so many people go out of their way to set up trusts or other estate planning tools: to keep their loved ones out of probate court altogether.
Now, with AB 2016, California is offering another way out for many families, without requiring complicated estate planning for smaller estates.
What Is AB 2016, and How Does It Change Things?
Assembly Bill 2016 (AB 2016) is California’s way of updating its small estate rules to better reflect today’s real estate market. Let’s be honest—housing prices have skyrocketed. The old “small estate” limit was $184,500, which barely covers an older condo in many parts of the state. It left a lot of families stuck in probate, even when the only asset was a modest home.
Here’s what’s new:
Starting April 1, 2025:
- If a person’s primary residence is worth $750,000 or less, their heirs can transfer that property without a formal probate case.
- The process involves filing a streamlined petition or affidavit, not opening a full probate court file.
- This change applies only to deaths that occur after April 1, 2025. Earlier deaths still follow the old rules.
This is a big deal. It gives a lot of families the ability to settle an estate faster, cheaper, and with way less red tape.
What Counts as a “Primary Residence”?
The law doesn’t apply to just any real estate you own. To use the small estate procedure under AB 2016, the property must be the decedent’s primary residence.
Your primary residence is the home you actually live in the majority of the time. It’s the address on your driver’s license, your voter registration, and your bills. It’s not your vacation cabin in Lake Tahoe or your rental duplex in San Francisco.
If you own several properties, only your main home counts toward the $750,000 exemption. Everything else—rental houses, investment properties, Airbnbs—would still go through regular probate unless planned for separately.
How Is the $750,000 Value Calculated?
It’s based on fair market value at the time of death, not the assessed value on your property tax bill. This is an important difference.
Let’s say you bought your home 20 years ago for $200,000. Thanks to the way California’s property taxes work, your tax bill might still show a value of $250,000. But if the real estate market says your home would sell today for $700,000, that’s the number that matters under AB 2016.
If your home’s fair market value is $750,000 or less, your heirs can use the new small estate procedure. If it’s $750,001, full probate might still be required unless other planning is in place.
This is why it’s smart to get a current estimate of your home’s fair market value sooner rather than later.
What Happens If the Property Is Over $750,000?
If the home’s value is even slightly over the $750,000 mark, then your estate probably won’t qualify for the streamlined small estate process. Your heirs would need to go through full probate, or you’d need to have other planning tools set up, like a living trust, to avoid it.
If you’re close to the limit—say your home is worth $740,000 today—you may want to consider planning ahead. Real estate values can fluctuate. A sudden market spike could easily push you over the threshold before anyone expects it.
What You Should Do Now
If you want to make sure your loved ones can actually benefit from the new rules, it’s worth taking a few small but important steps now.
1. Check the Value of Your Primary Residence
Don’t guess. Find out your home’s current fair market value based on what similar homes are selling for today.
2. Review or Create an Estate Plan
If you already have a will or trust, great. Make sure it’s up to date and reflects your current wishes. If you don’t, now’s the time to put one together, to avoid the probate laws altogether. It doesn’t have to be complicated.
3. Talk to an Experienced Estate Planning Attorney
A lawyer can help you figure out if your estate qualifies under the new rules and whether you need to tweak anything to make sure your loved ones avoid unnecessary hurdles.
Contact Our California Estate Planning Lawyers Today
At John Park Law, we know these changes can feel a little overwhelming at first. You don’t have to figure this out alone. Whether you just have a few questions or you’re ready for a full estate review, we’re here to help you make sense of it all—and protect what matters most.
Ready to start? Call us at 925-320-7077 or fill out our contact form today for a confidential consultation, and let’s talk about your options. No pressure. Just honest answers and the guidance you deserve. We’ll walk you through your options and help you create a plan that gives you and your family real peace of mind.
John Park is a highly experienced attorney in estate planning, probate, business law and guardianship to help people organize the elements of their lives through careful estate planning and asset protection measures.