California Assembly Bill 2016 (AB 2016), effective April 1, 2025, raises the threshold for simplified probate procedures from $184,500 to $750,000. While this change aims to streamline estate administration and reduce probate court backlogs, it introduces new uncertainties—especially regarding what qualifies as a “primary residence.” Accurate property valuation, careful eligibility analysis, and attention to family dynamics are more critical than ever. In this shifting landscape, a revocable trust may still be the safer, more predictable tool for avoiding probate. Legal guidance is strongly advised.
Overview of AB 2016
Signed into law on September 21, 2024, and taking effect April 1, 2025, AB 2016 amends California Probate Code § 13151 to significantly expand eligibility for simplified probate procedures. Under the revised law, an heir may petition the court for a streamlined transfer of real property without full probate if:
- The decedent died owning real property used as their primary residence in California;
- The gross value of that real property does not exceed $750,000 (subject to periodic inflation adjustment); and
- At least 40 days have passed since the decedent’s death.
Importantly, the statute states:
“For purposes of this chapter, ‘primary residence’ is not limited to the decedent’s residence at the time of their death.”
This ambiguous clause is already raising questions about how broadly the statute may be interpreted—and whether the door is open for disputes.
Legislative Timeline
- Introduced by Assembly Member Brian Maienschein on January 31, 2024
- Passed Assembly Judiciary Committee (10-0) on March 12, 2024
- Passed Assembly floor (72-0) on April 18, 2024
- Passed Senate Judiciary Committee (10-0) on July 2, 2024
- Passed Senate floor (39-0) on August 26, 2024
- Signed by Governor Gavin Newsom on September 21, 2024
The bill sailed through the legislature with unanimous bipartisan support, reflecting a clear desire to ease California’s notoriously slow probate process.
Legal Implications
✅ Higher Threshold, Broader Access
The increase from $184,500 to $750,000 dramatically expands the number of estates that could bypass full probate. This may reduce costs and time for many heirs, particularly in lower-cost housing markets.
⚠️ But with Broader Access Comes Greater Risk
The vague definition of “primary residence” is a legal wildcard. Because the statute does not limit the term to the decedent’s final place of residence, expect litigation over properties that were once—but no longer—used as a home. The legislators were trying to accommodate situations where an elderly individual moved out of their ‘primary’ residence to stay with family or in a nursing home. Disputes over what qualifies could create delays, increased legal costs, and potential abuse by opportunistic claimants.
Real Estate Valuation: Not Always Simple
While the $750,000 cap may seem generous, many properties—especially in urban or coastal areas—exceed that amount. According to California Association of Realtors data from February 2025:
- San Jose: $1.59 million (median home price)
- San Diego: $950,000
- San Francisco: $900,000
- Parts of Los Angeles County: ~$600,000
Thus, while the law opens new options in some regions, others will find the threshold still insufficient. And even in qualifying regions, disputes may arise over:
- Whether to use assessed value or market value
- Whether to apply discounts for joint ownership, liens, or repairs
- Which appraisal date to use (typically date of death, but sometimes disputed)
Blended Families and Legal Conflict
Simplified probate does not mean conflict-free probate. In fact, simplified procedures may lack the procedural safeguards of formal probate—creating room for confusion or challenge in:
- Blended families
- Unmarried partners
- Heirs contesting title or value
- Omitted heirs or unaddressed creditor claims
If one party files for simplified transfer and another disputes it, the case can escalate into full litigation, defeating the purpose of the shortcut.
Recommendations for Families and Professionals
- Get a Professional Valuation
Engage a licensed real estate appraiser to determine property value. County records may not reflect fair market value.
- Consult an Estate Planning Attorney
Especially if there’s any doubt about the residence status or potential conflicts. Attorneys can help navigate new procedures and reduce litigation risk.
- Consider a Living Trust
A revocable trust avoids probate altogether and gives you greater control and privacy. While trusts require some upfront cost and planning, they offer smoother administration—particularly during uncertain times like this, and they may even be a bargain if costly litigation can be avoided.
- Prepare for More Guidance
Courts may issue rules or case law in the coming years to interpret “primary residence.” Until then, conservative planning is best.
Final Thoughts
AB 2016 is a well-intentioned reform, aiming to modernize probate rules in a state with rapidly escalating home values. But the devil is in the details. Its ambiguity about primary residence, valuation challenges, and lack of procedural safeguards could bring unexpected complications.
If your estate plan involves California real property—especially near the $750,000 mark—now is the time to review it.
Klaus Gottlieb, JD, MBA
Wealth Care Lawyer | San Luis Obispo, CA
Focused on estate planning, charitable giving, and probate avoidance strategies.
