California changed how heirs deal with an inherited house. Since April 1, 2025, Assembly Bill 2016 has let a decedent’s primary residence worth $750,000 or less skip formal probate entirely, using a simpler court petition instead. If you’re settling an estate that includes a home, this is one of the biggest changes to hit California probate law in years, and it’s easy to get the details wrong.
Quick answer: Under AB 2016, an estate can use a “Petition to Determine Succession to Real Property” instead of full probate when the decedent’s primary residence is worth $750,000 or less. That’s separate from the small estate affidavit for personal property, which now covers up to $208,850. Both simplified processes can apply to the same estate if it qualifies for each.
What AB 2016 Actually Changed
Before AB 2016, California’s small estate rules lumped real property and personal property together under one threshold, using the home’s assessed value rather than what it would actually sell for. If the assessed value pushed the estate over the limit, heirs had no choice but to open a full probate case, even for a modest house.
AB 2016 split that into two separate tracks. A primary residence now gets its own $750,000 threshold, based on fair market value, with its own court petition. Personal property, like bank accounts and vehicles, still uses the small estate affidavit, and that threshold rose to $208,850 for deaths on or after April 1, 2025 under Probate Code Section 13100. Because these are two separate procedures for two different kinds of property, an estate can often use both at once: the real property petition for the home, and the affidavit for everything else. That’s not one combined dollar limit, but it does mean many modest estates that include a house can avoid formal probate altogether. For a broader look at how California divides up an estate when there’s no formal probate needed, see our guide to California inheritance laws.
The Two Simplified Tracks, Side by Side
| Track | Covers | Value limit | How to use it |
|---|---|---|---|
| Primary residence petition | Decedent’s main home only | $750,000 (fair market value) | Court petition (Form DE-305), with notice to all heirs and devisees |
| Small estate affidavit | Personal property and other assets | $208,850 | Sworn affidavit, no court filing required |
A few details trip people up on the real property side. The petition requires a certified probate referee to appraise the home, so you can’t just use the county’s assessed value. Heirs and devisees have to be formally notified of the petition, which gives them a chance to object, rather than simply signing off in advance. And heirs can’t file at all until at least 40 days have passed since the date of death.
What Doesn’t Qualify
The $750,000 track only applies to the decedent’s actual primary residence, meaning the home they lived in at the time of death (even if they’d moved out shortly before passing). Rental properties, vacation homes, and investment real estate don’t qualify for this petition and generally still need to go through formal probate, unless the estate is small enough overall to fit under the personal property affidavit using the old assessed-value method.
Does This Mean You Can Skip Probate Entirely?
Not necessarily. AB 2016 only removes probate for the specific pieces of an estate that qualify under these two tracks. If the estate also includes a business, out-of-state property, disputed claims among heirs, or assets that exceed either threshold, formal probate is often still required for those pieces, even after the home has been transferred. For a full walkthrough of what that timeline looks like, see how long probate takes in California, and if avoiding probate altogether is the goal for future planning, our 8 ways to avoid probate guide covers the estate-planning side of that.
If You’re Still Waiting on Your Inheritance
Even with AB 2016’s shortcuts, plenty of estates still end up in formal probate, whether because the home is worth more than $750,000, the estate holds other property, or heirs disagree about how to proceed. Formal probate in California typically runs 9 months to a year and a half or longer. If you’re an heir or beneficiary and need access to your share before the case closes, a probate advance can get you cash now instead of waiting on the court.
FAQ: California’s New Probate Rules for Primary Residences
What is AB 2016 and when did it take effect?
AB 2016 is a California law, effective for deaths on or after April 1, 2025, that lets heirs use a court petition instead of full probate to transfer a decedent’s primary residence, as long as it’s worth $750,000 or less.
Does AB 2016 apply if there’s no will?
Yes. The petition process works whether or not the decedent left a will; California’s intestacy rules simply determine who the qualifying heirs are. See our guide on California inheritance laws for how assets are divided without a will.
Can a rental property or vacation home use the $750,000 exemption?
No. Only the decedent’s actual primary residence qualifies for this petition. Other real estate typically still needs to go through formal probate.
What’s the real difference between the small estate affidavit and the new real property petition?
The affidavit is a sworn document heirs sign themselves, with no court involvement, for personal property up to $208,850. The real property petition requires filing with the probate court and notifying every heir, but allows a home worth up to $750,000 to transfer without a full probate case.
Does using AB 2016’s process reduce estate taxes?
No. California doesn’t have a state estate tax, and this process doesn’t change any federal estate tax obligations. It only simplifies how the property legally transfers to heirs.
The Bottom Line
AB 2016 makes it meaningfully easier to transfer a modest family home without a full probate case, but it’s narrower than it sometimes gets described online. It’s built for one primary residence under $750,000, it still requires a probate referee appraisal and notice to heirs, and it doesn’t touch other property in the estate. If your case doesn’t fit neatly into these rules and you need funds before probate wraps up, visit ProbateLend to see if a probate advance can help.
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