Big changes are coming to California’s small estate affidavit process, and if you’re handling the estate of a loved one, you’ll want to know what’s different. With the passage of Assembly Bill 2016 (AB 2016), California is making it easier for families to transfer assets without going through full probate. Here’s what you need to know about the new law taking effect on April 1, 2025.

What Is a Small Estate Affidavit and Who Can Use It?

A small estate affidavit is a simplified legal process that allows heirs to transfer assets without formal probate. This is often the preferred route when an estate is relatively modest in size, avoiding the time, complexity, and costs associated with probate court. To use this process, the total value of the estate must fall below a certain limit set by law.

What’s Changing and How It Affects You

1. Higher Valuation Thresholds

Currently, the small estate affidavit process is available for estates valued at $184,500 or less. Under AB 2016, that threshold is increasing dramatically—up to $750,000 for a primary residence. This means more families will be able to use the streamlined affidavit process instead of probate.

2. The Primary Residence Exclusion

One of the most significant changes is that a decedent’s primary residence (valued up to $750,000) is now excluded from the estate’s gross value when determining whether the estate qualifies for the small estate process. This is a game-changer for many California families, given the high property values in the state.

What does this mean in practical terms? If the only major asset in an estate is the decedent’s home and it’s worth $750,000 or less, that home can pass to the heirs without full probate, making the process much faster and less expensive.

3. Streamlined Transfer Process for Homes

For estates that include a primary residence, AB 2016 introduces a new petition process that allows heirs to establish their ownership rights without the need for letters of administration or probating a will. This will save families months—sometimes even years—of waiting for the probate court’s approval.

How to Use the New Small Estate Process

If you think an estate qualifies under the new law, here’s what needs to happen:

1. Confirm the estate’s eligibility. Make sure the total non-real estate assets are below $184,500, and the primary residence does not exceed $750,000.
2. Gather necessary documents. This typically includes a certified death certificate, title documents for property, and a complete inventory of assets.
3. Obtain a Formal Appraisal. For estates requiring a petition, a formal real estate appraisal is necessary to verify the value of the decedent’s home. This must be conducted by a probate referee appointed by the court.
4. Wait 40 Days Before Filing. Under California law, a 40-day waiting period must pass from the date of death before filing a small estate affidavit or petition. This ensures that all necessary parties have time to assess their legal standing and collect the required documentation.
5. Complete the small estate affidavit or petition.
   • For personal property (bank accounts, vehicles, etc.), you’ll use the small estate affidavit.
   • For a primary residence, you’ll need to file the new petition in the appropriate superior court.
6. Submit the documents and wait for processing. If a petition is required, the court will schedule a hearing, but in most cases, this process will be significantly faster than formal probate.

Do I Need a Trust If I Qualify for a Small Estate?

While the updated small estate process makes things easier, a living trust remains the best estate planning tool, especially for those with children or substantial assets. Here’s why:

1. Complete Probate Avoidance – The small estate affidavit only helps if the estate falls within the specific limits. If your estate is larger, or you have multiple properties, your heirs may still face probate. A properly funded living trust keeps everything out of probate, regardless of the estate’s size.
2. Immediate Access to Assets – With a small estate affidavit, there is still some waiting involved, and a court petition may be required for real property. A living trust allows for a smooth, immediate transition to your chosen beneficiaries without the need for court involvement.
3. Protection for Minor Children – If you have minor children, a trust allows you to control how and when assets are distributed. Without a trust, assets may pass directly to your children at age 18, which may not be ideal. A trust lets you structure distributions over time to ensure responsible management.
4. More Control Over Distribution – With a trust, you can specify who gets what, when, and how. You can include conditions, such as requiring a child to graduate college before receiving an inheritance. The small estate process offers no such control.
5. Privacy & Asset Protection – The small estate affidavit and probate court filings are public records, meaning anyone can see what your heirs inherit. A trust keeps everything private and can also provide some protection against creditors or lawsuits.
6. Planning for Incapacity – A living trust isn’t just about what happens after death. If you become incapacitated, a properly structured trust allows your successor trustee to manage your affairs without court intervention.

What This Means for You

This change is great news for California families who want to avoid the headaches of probate. By increasing the asset limits and creating a faster process for homes, AB 2016 makes estate administration simpler, faster, and more cost-effective for many people. However, it’s still crucial to have a well-structured estate plan to ensure everything passes smoothly.

If you have questions about how these changes impact your estate plan—or if you need help handling an estate—our team is here to help. Schedule a consultation with us today to make sure everything is in order and take advantage of these new streamlined options!