The New California Probate Law: Hidden Traps
A major shift in California probate law (Assembly Bill 2016) went into effect on April 1st. The headline news sounds great on paper: if a deceased loved one owned a primary residence in California valued at $750,000 or less, heirs can now use an expedited procedure—often called a Petition to Determine Succession to Real Property—rather than going through full-blown probate.
Now since some time has passed and attorneys have seen the law play out in the courtrooms, we have a better understanding of benefits and caveats of the new process. Read on to find out more so you can make an informed decision that meets your family’s needs.
Instead of taking a year or more, this streamlined route cuts the process down to roughly four months. People hear "faster and easier" and naturally get excited. But as an estate planning and probate attorney, I always tell my clients: shortcuts can lead straight into legal nightmares.
While this new law offers clear benefits for simple situations, it contains a massive structural drawback if your family plans to sell the home rather than keep it. Here is what you need to know before choosing this path.
The Good: How the New $750,000 Law Helps Families
Before this change, the threshold for expedited real property petitions was far lower ($184,500), forcing virtually every homeowner in California into traditional court-supervised probate upon death.
Under the updated law:
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Higher Cap for Primary Homes: As long as the home was the decedent’s primary residence and the gross appraised value is $750,000 or under, you qualify for the simplified process.
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Significant Time Savings: Standard California probate routinely takes 12 to 18 months. The expedited petition can resolve in roughly four months.
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Lower Administrative Expenses: Bypassing full probate avoids standard court-mandated statutory attorney fees and administrator fees tied to full probate proceedings.
If you are a single child inheriting your parent’s home and intend to live in it, this process is a huge win. But what happens when multiple heirs are involved and the plan is to sell?
The Hidden Caveat: Too Many Decision-Makers (The "13 Owners" Nightmare)
The biggest issue with the new law arises when an estate has multiple heirs—especially across generations—and the property needs to be listed and sold on the market.
In a full probate process, the court appoints a single representative (an Administrator or Executor). That individual receives formal letters of administration and holds single-point authority to sign listing agreements, negotiate with buyers, and finalize real estate transactions on behalf of the estate.
Under the new simplified petition, there is no single Administrator holding control. Instead, every single legal heir becomes a direct partial owner of the property.
Let’s Look at an Example:
Suppose a mother passes away leaving five adult children. Four of those children have already passed away, but each had three children of their own. The surviving family now looks like this:
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1 surviving son/daughter
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12 grandchildren (3 children from each of the 4 deceased siblings)
That equals 13 individual co-owners.
If you bypass full probate using the new law, you don’t end up with one person in charge of selling the house—you end up with 13 administrators.
Every single one of those 13 owners must agree on the listing price, agree on offer terms, sign the disclosures, and sign the deed at closing. If even one single heir refuses to sign, objects to the sales price, or cannot be located, the entire transaction grinds to a complete halt.
Why Staying in Full Probate Might Be the Smarter Choice
When an estate involves multiple heirs or fractured family dynamics, staying in regular probate is often the best strategy.
By opening formal probate:
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One Person Takes Control: The court appoints one executor or administrator (for instance, the surviving son or daughter).
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Simplified Real Estate Sales: That one individual signs the listing agreement and executes closing paperwork.
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Court Protection: Family members who disagree cannot single-handedly derail a property sale; the process stays structured under court oversight.
What starts as an appealing "shortened four-month procedure" can quickly turn into a multi-year legal deadlock if all heirs aren’t on the exact same page.
Bottom Line: Match the Process to Your Goals
The new $750,000 primary residence rule is a wonderful tool—if the property is staying within a small, unified family or if you are the sole heir.
However, if your goal is to sell the property and distribute proceeds among multiple family members, rushing into a simplified petition without legal advice can create a real estate nightmare.
Before taking action on an inherited home, schedule a consultation to evaluate your family’s specific heir structure. We can help you determine whether the new shortened procedure or formal probate is the safest, most efficient path forward.