By Guest commentary Monday, May 19th, 2025

By Crista Hermance

As an estate and crisis planning attorney, my mission is to help families avoid the chaos that can arise when a loved one passes without a plan in place. I’ve spent years educating clients about the very real — and often surprising — complications of California’s probate system. 

Many people assume that passing a home down to children or relatives is simple. It’s not. 

Without proper planning, even modest estates can get trapped in a slow, expensive court process that often adds unnecessary stress to an already painful time.

That’s why I was relieved when, last month, Assembly Bill 2016 (AB 2016) officially took effect in California. 

This new law, which became active on April 1, offers a streamlined alternative to the traditional probate process for certain estates. 

Specifically, if a deceased person’s primary residence is valued at $750,000 or less, it can be transferred to their heirs without going through full probate.

This is a meaningful change. Prior to AB 2016, California’s probate code only allowed simplified transfers for estates valued under $184,500 — a limit that was wildly out of step with today’s real estate market. 

As a result, families inheriting even modest homes were often forced into full probate, facing legal fees, delays and court involvement simply because no trust had been established.

Now, for qualifying estates, the new law offers a path forward that avoids many of these burdens. 

Heirs can use what’s known as a “petition to determine succession to real property” to transfer an inherited home more quickly and affordably. The process still requires a probate court hearing, but it’s much faster and cheaper.

To qualify, the estate must meet these criteria:

• The home was the decedent’s primary residence.

• The gross value of the home is no more than $750,000 (determined by an appraisal)

• The decedent died on or after April 1, 2025.

• There’s no ongoing probate case, or the personal representative agrees to the petition.

Note that the streamlined process cannot be applied to other types of inherited real estate, such as vacation homes or rental properties. 

Nor is it valid for primary residences above the $750,000 threshold, which must go through the full probate process. 

Heirs must also notify all other legal heirs and named beneficiaries about the petition, even those not included in the decedent’s will — a requirement that helps ensure everyone’s rights are protected, but which can also make family disputes more likely. 

UNEVEN RELIEF

The new law is especially helpful for Californians living in areas with relatively lower home values. These include places like the Central Valley, some parts of the Central Coast and rural counties. 

But it’s important to recognize that the law doesn’t solve the probate problem for everyone.

As of March, California’s median home price is over $880,000, according to the California Association of Realtors. In high-cost regions like Los Angeles, Orange County and the Bay Area, even modest homes frequently exceed the new $750,000 threshold. 

For families in these areas, the new law may offer little or no relief. Without proactive planning, such as through the creation of a living trust, heirs could still face full probate when a loved one dies.

The law does create a more realistic and practical tool for some middle-income families. 

It also sends a broader message: that California is beginning to modernize its estate laws in response to today’s economic realities. 

That’s a positive step, but it’s no substitute for thoughtful planning.

Regardless of the latest changes, the best step Californians can take when looking to safeguard what happens to their wealth if they die or become incapacitated is to sit down with a knowledgeable estate planning attorney. 

A professional can help guide you through your options and, most importantly, bypass probate altogether. For many families, the best way to do this is by creating a living trust.

Unlike the new petition process, a trust doesn’t depend on property value limits, court approval or waiting periods. It offers privacy, clarity and peace of mind without the red tape.

I’ve always believed that estate planning is a gift you give your family. 

It’s not just about transferring assets — it’s about easing burdens, preventing conflict and giving loved ones the space to grieve and heal. 

AB 2016 makes that gift more attainable for some Californians. 

For others, it’s a timely reminder: the best time to plan isn’t after a crisis, it’s before one ever begins.

Crista Hermance is the founding attorney of Hermance Law, a full-service estate and crisis planning law firm based in Southern California.