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A Familiar Story
Here’s a story based on true events. Maria’s father passed away in 2023, leaving behind an aging pickup truck, a small checking account, and a one-bedroom apartment in Stockton. Together, the assets totaled $186,500, just over the then-probate threshold of $184,500. Maria assumed that she could take care of things quickly, but instead she was pulled into formal probate—a process that took nearly a year and thousands of dollars in legal fees. The irony? The bank account had only $2,500 in it and the pickup truck wasn’t even worth $3,000, yet the legal costs exceeded their combined value.
Maria’s situation was not unusual. Families across California faced the same frustration: modest estates being tied up in probate simply because the law’s “small estate” dollar limits hadn’t kept pace with California’s rising costs of living and property values.
Simplifying the Process for Modest Estates
Last September, lawmakers enacted Assembly Bill 2016 (AB 2016), sponsored by Housing and Economic Rights Advocates (HERA). The new law, which takes effect on April 1, 2025, allows a decedent’s primary residence—or the sole residence owned by a decedent who was residing in a care or assisted living facility at the time of death—to be transferred outside of a full probate if the property’s value does not exceed $750,000. This means that many modest California homes can pass to heirs through a streamlined court process rather than through a lengthy and costly California probate.
Other assets are subject to different limits and procedures. For deaths on or after April 1, 2025:
Other real property such as vacation homes, rental properties, and land, qualifies for a simplified affidavit, but only if its value is $69,625 or less.
Personal property such as bank accounts and vehicles are collected using a small estate affidavit if the total value is $208,850 or less.
Unpaid wages or salary can be collected from the decedent’s employer through a simplified affidavit or petition if the amount owed is $20,875 or less.
If the entire estate is $107,900 or less, the entire estate can be “set aside” for the support of the decedent’s spouse or minor children.
These reforms reflect the realities of California’s housing market and are a significant step toward relieving families with small estates of the burden of a full probate. Still, every estate is unique, and the best path forward depends on a careful review of both the law and your loved one’s assets.
How Paley & Prehn Can Help You
At Paley & Prehn, we support families through the small estate process with skill and sensitivity. If you’ve recently lost a loved one, we’re here to help make the legal process easier. We offer free 30-minute initial consultations for estate administrations of any size.