Starting April 1, 2025, California’s probate laws will undergo significant changes, thanks to the implementation of Assembly Bill 2016 (AB 2016). One of the key updates is the streamlined process for transferring a decedent’s personal residence valued under $750,000. This adjustment aims to simplify estate administration and reduce the burden on families managing smaller estates.
In this blog post, we’ll explore how this new process works and what steps you need to take to probate a decedent’s personal residence under $750,000.
Overview of the New Law
Under AB 2016, California will increase the threshold for small estates to $750,000. This allows more estates, including personal residences, to qualify for simplified probate procedures. If the gross value of the decedent’s personal residence falls below this threshold, heirs and beneficiaries may bypass the lengthy and costly formal probate process.
Key Criteria for Probating a Personal Residence
To use the simplified procedure for transferring a personal residence, the following conditions must be met:
Valuation of the Residence:
The gross value of the personal residence must not exceed $750,000. The gross value is determined by the property’s fair market value without considering any mortgages or liens. A court approved appraisal must be submitted.
Residency Requirement:
The property must have been the decedent’s primary residence at the time of death.
Eligibility for Simplified Probate:
The decedent’s total estate value, excluding assets with designated beneficiaries (e.g., life insurance, retirement accounts) or assets held in a trust, must fall within the $750,000 threshold.
Timeframe:
At least 40 days must have passed since the decedent’s death before the simplified process can begin.
Steps to Transfer a Personal Residence Under the New Law
The proper forms to use have yet to be created by the Judicial Counsel, but here are the steps for transferring a decedent’s personal residence under the simplified procedure:
Prepare the Legal Forms:
Complete a Petition to Determine Succession to Real Property (Currently Form DE-310), which will include details about the decedent, the residence, and the claimant’s relationship to the decedent. This form has yet to be released as of the writing of this post.
Include a legal description of the property and the property’s fair market value based a Court approved appraiser.
Obtain Supporting Documents:
Attach a certified copy of the decedent’s death certificate.
Provide documentation showing ownership of the property (e.g., deed or title).
Include a Court approved n appraisal.
File the Petition:
Submit the Petition to the Court.
Ensure that all required signatures are notarized.
Notify Interested Parties:
Notify all heirs and beneficiaries of the intent to transfer the property under the simplified procedure.
Complete the Transfer:
Once the Petition is approved the Court will sign an Order, which will thereafter be submitted to the county recorder’s office to facilitate the transfer of title to the rightful heir(s).
Benefits of the New Process
Cost Savings:
Avoiding formal probate reduces court fees, legal expenses, and administrative costs.
Faster Resolution:
The simplified process is significantly quicker than formal probate, often taking weeks instead of months or years.
Less Complexity:
Heirs and beneficiaries can manage the transfer without navigating the complexities of full probate proceedings.
When Formal Probate May Still Be Required
While the new law simplifies the transfer process for many estates, certain situations may still require formal probate, such as:
Disputes among heirs or beneficiaries.
Presence of creditors with unresolved claims against the estate.
Complex estates involving multiple properties or assets exceeding the $750,000 threshold.
Conclusion
The changes taking effect on April 1, 2025, represent a significant step toward making estate administration more accessible and efficient in California. By raising the small estate threshold and simplifying the transfer of personal residences under $750,000, families can save time and money during an already challenging time. If you’re dealing with the probate of a personal residence or need guidance, consult with an experienced California probate attorney to ensure the process is handled smoothly and correctly.
Contact the top-rated California trust and probate attorneys Moravec, Varga & Mooney today to schedule a telephonic consultation. Have questions, call (626) 460-1763 or email LV@MoravecsLaw.com.
Southern California Probate Lawyer Serving all counties in California, including Los Angeles, Riverside, San Bernardino, Sacramento, Santa Cruz & Beyond.
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