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If you own a home in California, there's a good chance its value has climbed well beyond what you paid for it. That's a welcome reality for your finances, but it has also quietly pushed many California homeowners into probate territory without them realizing it.
California's new probate threshold for primary residences, established under AB 2016, changes the picture for a lot of families across the state. For the first time, qualifying primary residences valued at $750,000 or less may be transferred to heirs without going through the full probate process. If you've been putting off your estate plan because you assumed probate was unavoidable, this law is worth understanding. And if you already have a plan in place, it may be time to revisit it.
At Huber Law Group, we help California families cut through the confusion around estate planning laws so they can protect what they've worked hard to build.
For help understanding the new California probate threshold, contact Huber Law Group through the online contact form or call (916) 525-7980.
AB 2016 took effect on January 1, 2025, and it introduced a significant change to how California handles the transfer of a primary residence after death. To understand why it matters, it helps to know what the rules looked like before.
Prior to AB 2016, California had no special carve-out for primary residences. The probate threshold was $184,500 and $61,500 for real estate. Any estate including real estate valued at over $61,500 or gross assets exceeding $184,500 was subject to a formal probate. For homeowners in most parts of California, these thresholds were easy to exceed. A modest house in Elk Grove, a townhome in midtown Sacramento, or a starter home in Folsom could push an estate over the limit without any other significant assets involved.
That meant families were regularly forced into a court-supervised probate process that can take a year or more and cost thousands of dollars in legal and court fees, simply because a home had appreciated in value over time.
Under AB 2016, a primary residence valued at $750,000 or less may now qualify for a streamlined transfer process, bypassing full probate entirely. The law uses a petition process rather than a full probate proceeding. An eligible heir can petition the probate court to have the property transferred without the estate going through standard administration. This can save months of waiting and significant expense for your family.
AB 2016 doesn't create an entirely new legal process from scratch. Instead, it expands and modifies an existing procedure that has been part of California probate law for years: the Petition to Determine Succession to Real Property, governed by California Probate Code Sections 13150 through 13152.
Under the existing framework, this petition process was already available as a simplified alternative to full probate, but it came with a significant limitation. It only applied to estates where the gross value of all real property subject to administration did not exceed $61,500, an amount that made the procedure inaccessible to the vast majority of California homeowners given current property values.
AB 2016 dramatically raises that ceiling for primary residences specifically, lifting the threshold to $750,000 and opening the door for a far larger group of families to use this streamlined path. The core mechanics of the petition process remain the same. A qualified heir files a petition with the Superior Court, provides notice to interested parties, and asks the court to confirm the transfer of the property without going through full probate administration.
What changes under AB 2016 is who can use it. By targeting primary residences and raising the value limit to $750,000, the law brings a practical, lower-cost option within reach for many California families who previously had no choice but to go through the full probate process just to transfer a home.
It's worth noting that this is still a court process. It requires proper filing, compliance with notice requirements, and a hearing. It is simpler and faster than standard probate, but it is not as seamless as a transfer through a revocable living trust, which requires no court involvement at all.
The $750,000 threshold applies specifically to primary residences, not investment properties, vacation homes, or rental units. To qualify, the property must have been the decedent's primary residence at the time of death, and the heir receiving the property must also intend to use it as their primary residence.
There are additional eligibility requirements tied to the relationship between the decedent and the heir. Not every transfer will qualify, and the value of the home is assessed at the time of the owner's death, not at the time of purchase. In a real estate market as varied as California's, where values can shift considerably from region to region and year to year, it's worth knowing where your home stands today.
It's also important to understand that this exemption does not eliminate all estate administration requirements. Other assets still count toward the overall estate value, and if your total estate exceeds the applicable thresholds, probate may still be required for non-real property assets.
AB 2016 gives more California families an option they didn't have before, but it's not a replacement for thorough estate planning. A revocable living trust still offers advantages that the new probate exemption does not.
For one thing, a trust covers all of your assets, not just your home. Bank accounts, investment accounts, personal property, and business interests can all be held in a trust and transferred to your beneficiaries without court involvement. A trust also gives you more control over how and when your assets are distributed. If you have minor children, a blended family, or a beneficiary with special needs, a trust can be structured to protect them in ways a simple petition process cannot.
Another consideration: home values in many California markets, from the Sacramento region to the Bay Area to Southern California, already exceed the $750,000 threshold. If your home is worth more, AB 2016 won't apply, and your estate could still face full probate without proper planning in place. A revocable living trust avoids this problem regardless of your home's value.
The most useful thing you can do right now is find out whether your estate plan, if you have one, still reflects current law and your current situation. California estate planning law has changed meaningfully in recent years, and a plan drafted even five years ago may not account for AB 2016, updated asset thresholds, or changes to your own family circumstances.
If you don't yet have an estate plan, this is a good moment to start. Even if AB 2016 applies to your home today, your home's value could exceed $750,000 by the time you pass away. Building a plan that works at any value, rather than relying on a threshold that may not hold, gives your family more certainty.
California homeowners should also keep in mind that probate proceedings are handled through the California Superior Court system and involve filing fees, publication requirements, and hearings that take time and money. Avoiding probate is almost always in your family's best interest, and the right estate plan makes that possible.
AB 2016 represents real progress for California homeowners who want to protect their families from the time and cost of probate. But a single law change doesn't replace a solid estate plan, and the $750,000 threshold has limits that many homeowners across the state will brush up against as property values continue to rise.
Whether you're starting your estate plan from scratch or reviewing one you put together years ago, an Elk Grove estate planning attorney can help you understand how California's new probate threshold affects your situation and what steps make sense for your family. Contact Huber Law Group through the online contact form or call (916) 525-7980 to schedule a no-cost consultation.
Q: What is California's new $750,000 probate threshold for primary residences?
A: Under AB 2016, which took effect January 1, 2025, qualifying primary residences valued at $750,000 or less may be transferred to an eligible heir through a simplified court petition instead of full probate. The exemption applies only to primary residences, not rental or investment properties, and the heir must intend to use the home as their primary residence. This new threshold gives many California homeowners a path to avoid the time and expense of traditional probate.
Q: Does AB 2016 mean I no longer need a living trust if my home is worth less than $750,000?
A: Not necessarily. AB 2016's probate exemption covers only your primary residence. A revocable living trust protects all of your assets, including bank accounts, investments, and personal property, and avoids court involvement entirely. It also gives you greater control over how assets are distributed and who receives them. For most homeowners, a trust remains the more comprehensive solution, even if your home qualifies under California's new $750,000 probate threshold.
Q: How do I know if my estate will have to go through probate in California?
A: In general, California probate is required when a person's estate includes assets that exceed the applicable threshold and are not held in a trust or titled with a right of survivorship. As of 2025, the general small estate threshold for personal property is $208,850. The new $750,000 primary residence exemption under AB 2016 adds another option, but other assets still count toward the overall estate. An estate planning attorney can review your situation and tell you where you stand.
Q: Can I use AB 2016 to transfer my parents' home to myself without probate?
A: Potentially, yes, if the home qualifies. The property must have been your parent's primary residence, it must be valued at $750,000 or less at the time of death, and you must intend to use the home as your primary residence. There are additional eligibility requirements based on your relationship to the decedent. If these conditions are met, you may be able to use the streamlined petition process rather than going through full California probate.
Q: What happens if my California home is worth more than $750,000?
A: If your primary residence exceeds the $750,000 threshold, it will not qualify for the AB 2016 exemption, and your estate may be subject to full California probate unless you have other planning in place. A revocable living trust is the most reliable way to ensure your home, regardless of value, transfers to your heirs without court involvement. Given how home values have climbed across much of the state in recent years, this is a scenario worth planning for now rather than later.
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