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probate threshold change in California

Starting April 1, 2025, You May Not Need Probate in California (See If You Qualify)

Starting April 1, 2025, a new California law will streamline probate for primary residences valued under $750,000—allowing families to sell these homes without the hassle of probate.
 
 

Key Changes to the Probate Law (AB 2016):

  • Exclusion of Primary Residence: Homes valued up to $750,000 will no longer be subject to probate.
  • Applies to Deaths on or After April 1, 2025.
  • Higher Value Limit for Succession Petition: Estates can now use a "Petition to Determine Succession to Real Property" for homes up to $750,000—avoiding full probate.
  • More Property Exempt from Probate: Combined assets up to $934,500 may now qualify for this streamlined process ($750,000 for the home + $184,500 in cash).
  • Clearer Definition of "Primary Residence": It’s the decedent’s main home, regardless of whether they lived there at the time of death.
  • All Heirs Must Sign Court Documents.
  • At Least 40 Days Must Pass After Death Before Filing.
  • A Probate Referee Must Appraise the Home.
  • Done Right, This Could Save Years in Probate Court! 

What Is Changing?

Currently, estates valued at $184,500 or more must go through probate in California. The new threshold will increase significantly, allowing estates valued up to $750,000 to bypass the formal probate process. For real estate agents, this shift means that more property transactions might avoid the lengthy and often costly probate court proceedings.

Impact on Real Estate Business

  1. Faster Sales for Smaller Estates: With the increased threshold, heirs and beneficiaries can transfer real estate assets more quickly without waiting for probate clearance. This change will likely lead to faster sales and reduced holding costs for properties under the new limit.
  2. Increased Market Activity: The streamlined process might encourage more families to sell inherited properties, leading to increased listing opportunities for real estate professionals.
  3. Targeted Marketing Opportunities: Real estate agents can tailor their marketing strategies to connect with families managing estates under $750,000, highlighting the benefits of a simplified sales process.

Why a Living Trust Still Matters

While the increased probate threshold is good news for smaller estates, creating a living trust remains the gold standard for estate planning. A living trust allows homeowners to avoid probate entirely, regardless of the estate’s value. Unlike the increased threshold, a trust ensures privacy, minimizes legal fees, and provides more control over asset distribution.

For real estate agents, educating clients on the benefits of living trusts can build trust and lead to stronger client relationships. By collaborating with probate attorneys, agents can provide added value to homeowners looking to secure their legacy and streamline future transactions. 

Want to Avoid Probate Court Entirely?

While this new law helps, the best way to protect your assets and family is with a Living Trust.

With a properly structured trust, your loved ones can bypass the probate court entirely—no delays, no court involvement, and no unnecessary legal fees.

We can help you set up a Living Trust and avoid the probate court altogether.