One of the noteworthy pieces of legislation passed in 2024 was Assembly Bill 2016 (AB 2016), which aims to address accessibility, efficiency, and fairness within California’s probate procedures.
Probate is the court process through which a deceased person’s assets are administered and distributed to beneficiaries and heirs. It can be a complex, time-consuming, and expensive process. AB 2016 seeks to streamline this process in various ways, making it more efficient and less burdensome for families during an already difficult time.
In this blog post, we will review the current laws, introduce the changes under AB 2016, and discuss how these changes may streamline the administration of a decedent’s estate.
Current Law
Under current law, probate is generally required if the decedent died with assets with a total value of more than $184,500 in their probate estate, meaning that the assets were titled in the decedent’s name alone were not held in a trust and did not have valid beneficiary designations.
For estates less than $184,000, summary procedures are available to the decedent’s beneficiaries or heirs, allowing them to avoid the burden of whole probate proceedings.
Small Estate Affidavit
Suppose the decedent’s estate’s gross value, including all real and personal property, does not exceed $184,500. In that case, the decedent’s “successor in interest” may use a summary procedure commonly called a “Small Estate Affidavit” to claim a decedent’s personal property. A successor in interest is the person (or persons) entitled to inherit the decedent’s property, either under the terms of the decedent’s will or the laws of intestacy. The successor in interest will sign a declaration under penalty perjury stating that they are entitled to receive the property and present this signed declaration to the asset-holder. The asset holder is required by law to distribute the property. This procedure avoids court oversight and is a much easier, quicker, and cheaper alternative to probate.
Affidavit for Real Property of Small Value
If a decedent owned real property with a value of less than $61,500 upon death, then the successor in interest can similarly sign a declaration commonly called an “Affidavit for Real Property of Small Value.” However, the property must be appraised by a court-appointed probate referee; the affidavit must be filed with the court, signed by the court clerk, and recorded with the county recorder. Although this procedure requires court involvement, it is minimal and much more efficient than probate.
Petition Determining Succession to Property
In cases where the decedent owned real property with a value exceeding $61,500, the total gross value of their entire estate is still under the $184,500 probate threshold. The successor in interest can file a petition requesting the court to distribute the property to them. This is a court proceeding and does require notice to interested parties and a hearing. However, this procedure can typically be completed with only one petition and is still much quicker than a complete probate.
Upcoming Changes Under AB 2016
Effective April 1, 2025, for dates of death occurring on or after April 1, 2025, several changes to the law will permit even more decedents’ estates to be administered using summary procedures.
Here are three key changes that you need to know:
1. Exclusion of Personal Residence from Small Estate Affidavit Threshold
The new law provides that the decedent’s primary residence will be excluded from the $184,500 threshold when determining whether a Small Estate Affidavit may be used to claim the decedent’s personal property, provided that the primary residence has a value up to $750,000. However, it is essential to note that two requirements must be satisfied: the real property must have been the decedent’s primary residence, and the value of the residence cannot exceed $750,000.
2. Increase in Petition for Determining Succession to Real Property Threshold
While current law provides that a Petition for Determining Succession to Real Property can only be used if the decedent’s entire estate had a value under the $184,500 threshold, the new law states that this petition can be used to claim the decedent’s primary residence, provided that the value of the residence does not exceed $750,000.
3. Increase in Total Value of Estate Subject to Summary Procedures
Under current law, any summary procedures can only be used if the value of the decedent’s entire estate does not exceed $184,500. The new law provides that up to $934,500 in property may pass through summary procedures: up to $750,000 for the decedent’s primary residence plus up to $184,500 for personal property. This is a considerable increase!
The changes under AB 2016 have the potential to ease the burden of many families following the death of a loved one by allowing them to administer the estate without the need for entire probate proceedings. If you have specific questions about how AB 2016 might affect your situation, speaking with an experienced trusts and estates attorney is always a good idea. The knowledgeable and caring team at Absolute Trust Counsel would be happy to advise you regarding how the changes in law may affect your estate or an estate you are responsible for administering.