New California Law Simplifies Estate Transfer for Homes Up to $750,000—What California Families Need to Know
If you’re a California resident worried about your family going through probate after you pass away, a new state law effective April 1, 2026 could provide some relief—but it’s not a complete solution for most families.
Who This Law Helps (And Who It Doesn’t)
This law is designed for California residents who:
However, if your home is worth more than $750,000, your entire estate—including all personal property—must still go through full probate, which typically takes 12 to 18 months in California.
What Is Probate and Why Should California Families Care?
Probate is the court-supervised process that validates a will and distributes your estate according to your wishes or, if you don’t have a will, according to California’s intestate succession laws. The process:
For many California families, avoiding probate entirely is the better strategy.
How the Old Small Estate Rules Worked
Before April 1, 2026, California allowed estates valued at $184,500 or less in “probate assets” to use a simplified procedure. Probate assets are typically assets held in your name alone, without a designated beneficiary.
If your estate exceeded $184,500, everything had to go through full probate—even if you had millions in non-probate assets like retirement accounts or life insurance.
What Changes on April 1, 2026 Under AB2016
The new law, AB2016, creates two separate pathways to avoid full probate:
1. For Your Primary Home (Up to $750,000)
Your heirs can use an expedited probate process for a primary home valued at $750,000 or less at the time of death, regardless of how much personal property you own.
2. For Personal Property (Up to $200,000)
Your heirs can use an even simpler process for personal property—everything except real estate, including financial assets, jewelry, and household furnishings—valued at up to $200,000, but only if your primary home doesn’t exceed $750,000.
For personal property, heirs simply provide a “small estate affidavit” to banks, brokerage firms, or other institutions to transfer assets without going through probate court.
The Critical Limitation: What Happens If Your Home Exceeds $750,000?
If your primary home is worth more than $750,000, your entire estate must go through full probate, including all personal property. Given that the average California home was worth around $750,000 last year according to Zillow, many California families will still face full probate.
Real-World Example: How This Works
Let’s say you’re a Sacramento resident who passes away with:
Under the new law:
But if that same home were worth $760,000, everything except the retirement accounts would go through full probate.
How California Families Can Use the Fast-Track Process
There are two different procedures:
For Personal Property Under $200,000:
Heirs provide a small estate affidavit to the person, bank, or company holding the property to have it transferred. No probate court involvement required.
For Primary Homes Up to $750,000:
The process is more involved and may require an attorney’s help:
Important note: Estate attorneys are still waiting for the California Judicial Council to interpret AB2016 and issue official forms, so some details remain uncertain.
Why This Law Still Isn’t the Answer for Most California Families
As estate planning attorney Clay Stevens notes, “It is a limited exception and still not the answer for most people”. Here’s why:
The Better Solution: Comprehensive Estate Planning
For most California residents, proper estate planning remains the most reliable way to protect your family and avoid probate entirely. Here’s how to ensure all your assets are “non-probate”:
Create a Revocable Living Trust
The most comprehensive solution is creating a revocable trust and titling your assets in the trust name. Benefits include:
Ensure All Assets Are Non-Probate
If you don’t have a trust, make sure your assets automatically bypass probate:
Why California Probate and Trust, PC Can Help
At California Probate and Trust, PC, we understand that California families are anxious about navigating complex estate laws. Whether you’re dealing with probate now or planning to protect your family’s future, we offer:
Our Sacramento-based team has helped thousands of California families create customized estate plans that provide true peace of mind—not just temporary fixes.
Take Action Now: Protect Your Family Before It’s Too Late
Don’t wait until your family is struggling with probate court. Even with the new AB2016 law, most California families need more comprehensive protection.
Schedule your free consultation with California Probate and Trust, PC today:
Get personalized guidance on creating a living trust, updating beneficiary designations, or navigating California’s probate process. Your family deserves clarity, not confusion.
Legal Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Estate planning laws are complex and subject to change. The information presented here is based on AB2016 as enacted, but implementation details are still being finalized by the California Judicial Council. Every family’s situation is unique, and the best estate planning strategy depends on your specific assets, family structure, and goals. For personalized legal advice regarding your estate planning needs, please consult with a qualified California estate planning attorney. California Probate and Trust, PC offers free consultations to help you understand your options and create a plan tailored to your circumstances.