Understanding the New Probate Law in California: A Game Changer for Heirs

Inheriting Property in California Just Got Easier—But Only for Some

As of April 1, 2025, a new California law is making it easier for certain heirs to inherit property—without getting caught in the costly, time-consuming probate process. But while this change is a big win for some, it also comes with new restrictions and more room for family conflict.

What Changed?

California has expanded the definition of what qualifies as a “small estate,” allowing more families to bypass probate—if specific conditions are met.

For the first time, a primary residence valued up to $750,000 can now be transferred through a simplified process. Previously, real property (like homes) was excluded from this fast track, regardless of value. Now, if the home meets the new criteria, heirs can avoid full-blown probate entirely.

But there’s a catch: This only applies to one property, and it must have been the decedent’s primary residence. Vacation homes, rentals, or properties over the $750,000 cap still require traditional probate—unless already held in a trust or with joint ownership.

So, What Exactly Is Probate?

Probate is a court-supervised process for settling a person’s estate after they pass away. It includes validating the will, paying off debts, and distributing assets. In California, probate typically takes 12 to 18 months, often requiring attorney fees and court costs. For grieving families, the process can be both emotionally and financially draining.

To ease this burden, California allows “small estates” to avoid probate if the value of probate assets falls below a certain limit. Probate assets are those solely owned by the deceased without a named beneficiary—think bank accounts, vehicles, stocks, and real estate not in a trust.

Previously, the cap was $184,500. As of April 1, 2025, that threshold rises to around $200,000 for personal property—and, for the first time, may include some real estate.

How the New Fast-Track Works

If the estate qualifies, heirs can file a streamlined petition with the probate court requesting ownership of the property. This simplified process can take as little as 60 to 90 days, versus more than a year for standard probate.

However, there are new obligations. All legal heirs and named beneficiaries must be notified, even if they’re not included in the will. This layer of transparency protects everyone’s rights—but it can also spark disputes, delaying the process the law aimed to simplify.

If there are no objections and the court approves the petition, the property can be transferred without full probate administration.

For personal property under $200,000, heirs can still use a small estate affidavit, allowing them to claim assets directly from institutions after 40 days from the date of death—no court required.

What It Means for Heirs and Homeowners

For heirs, the new law offers a faster, more affordable way to inherit a family home. But it also raises the importance of clear estate planning and communication. Notifying all heirs—even those intentionally left out of a will—can lead to legal challenges if expectations weren’t discussed beforehand.

For homeowners, this change might influence how they plan their estates—especially those without a trust. Some may consider gifting or transferring property before death, or selling secondary homes to help ensure their heirs won’t be left navigating probate.

Want to Avoid Probate Entirely?

While the new law offers relief for some, it’s still risky to rely on asset thresholds alone. The only guaranteed way to avoid probate is to place assets in a revocable living trust.

California’s expanded small estate rules open a quicker path to inheritance—but only under very specific conditions: one primary residence, under $750,000, with no disputes.

For everyone else, the long road through probate still lies ahead.

📞 Contact: Nancy Andreason
📍 Title: Realtor
📲 Phone: 714-944-3300
📧 Email: [email protected]
🌐 Website: andreasongroup.com

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