California Expands Streamlined Probate Process for Qualifying Primary Residences
On September 21, 2024 Assembly Bill No. 2016 (“AB 2016”) was signed into law, codified in California Probate Code Section 13151, simplifying the probate administration process for qualifying primary residences. For deaths occurring on April 1, 2025 or later, a decedent’s California primary residence with a gross value of $750,000 or less may pass to heirs and devisees through a streamlined court petition instead of formal probate.
A year later, this simplified court procedure has been utilized and proven successful.
- CA Probate Code Section 13151 Simplifies the CA Probate Administration Process for Primary Residences Valued at or Below $750,000.
- Application of Law
If a decedent dies on or after April 1, 2025, and the decedent’s California primary residence market value is at or below $750,000, as determined by a California probate referee, the successor may petition the superior court to transfer the residence utilizing Judicial Council of CA form DE-310. The applicable value threshold depends on the decedent’s date of death, as shown below:
| Decedent’s Date of Death | Primary Residence Value Threshold |
|---|---|
April 1, 2025 through March 31, 2028 | $750,000 |
April 1, 2022, through March 31, 2025 | $184,500 |
Before April 1, 2022 | $166,250 |
The “successor” is determined pursuant to intestate succession, or by the decedent’s Will.
- Important Limitations and Understandings
Although the Probate Code does not limit “primary residence” to the residence occupied by the decedent immediately before death, it does not include other real property, such as rental properties or commercial real estate.
If the estate includes assets in addition to the qualifying primary residence, those assets remain subject to the applicable Probate Code provisions. For example, if an estate includes a qualifying California primary residence valued at $750,000 or less, as well as a rental property or investment accounts, the streamlined petition may be used to transfer only the qualifying primary residence.
The rental property, investment accounts, and other assets, remain subject to the otherwise applicable Probate Code procedures. In such cases, this requires an analysis of the cost and time effectiveness of utilizing both procedures, or encompassing all assets under the ordinary course of probate administration. Furthermore, if a different individual serves as petitioner/executor of the probate administration, the successor petitioner for the petition to determine succession to real property must obtain the executor’s permission to utilize the procedure. If the qualifying primary residence is encumbered, the petitioner (successor) must contact the lender and assume the loan.
Finally, while this process is intended to be more efficient and cost effective than a probate administration, it is still subject to probate referee fees, court filing fees, costs of service of process, and attorney’s fees if applicable.
- Petition Requirements
To use this streamlined procedure, a successor may file a petition in the superior court of the county in which the estate may be administered at least 40 days after the decedent’s death. Among other required information, the petition must include the inventory and appraisal, a copy of the most recent deed for the property, a legal description of the property, a statement that no other proceeding for the estate’s administration has commenced and the contact information of those interested in the estate.
Within five business days of the petition’s filing, the successor must provide notice to each heir and devisee named in the petition. After receiving notice, the other parties may assert an ownership interest in the property or otherwise dispute the petition, such as by initiating a partition action. So while the petition process is much simpler than formal probate, property disputes under the Probate Code may continue. If there are no disputes and all qualifications are met as determined by a judge at an assigned hearing, an Order Determining Succession to Primary Residence will be issued. That Order then must be recorded with the County Assessor/Recorder/Clerk to document the transfer of title to the successor.
In sum, CA Probate Code Section 13151 provides successors of decedents who die on or after April 1, 2025, with a streamlined alternative to formal probate for transferring qualifying California primary residences valued at or below $750,000. This process can save time and probate administration fees, and is best utilized for simple, undisputed estates.
For more information or if you have questions, please contact Christine Chacon and/or Irene Lee.
