Big changes are coming to California’s probate process in 2025, thanks to Assembly Bill 2016 (AB 2016). If you’re set to inherit property in California, you may be wondering, “How will the new California probate laws affect me?” It’s essential to understand these changes, as they might impact how quickly you can access your inheritance in the state of California—and in some cases, may even lead to longer delays and more complexity.
Here’s what’s changing and what it means for those waiting on an inheritance.
Increased Small Estate Threshold
AB 2016 raises the threshold for what California considers a “small estate.” In the past, if an estate was valued at less than $166,250, it could skip the full probate process. However, starting in 2025, this threshold will jump to $750,000, meaning more estates will qualify for a simplified process.
Who Benefits? This new cap could be helpful for heirs of estates primarily involving real estate, especially since California property values have soared. But it’s important to note that this simplified probate process might not suit everyone. If there are complex factors—like creditor claims, a large number of beneficiaries, or disagreements among heirs—this option may not be feasible, which could delay access to inheritance.
Simplified Transfer of Primary Residences
One of AB 2016’s goals is to streamline the transfer of primary residences under the $750,000 threshold. This update allows the decedent’s main home to potentially skip the full probate process, as long as it fits within the estate cap.
Considerations for Heirs with the Upcoming California Probate Reforms
This change sounds straightforward but could come with complications. Joint ownership among multiple heirs can lead to disagreements over maintenance, occupancy, or the decision to sell. If all parties aren’t on the same page, these conflicts can slow down the process or even lead to costly legal action.
New Notification Requirements
AB 2016 requires formal notification to all heirs and interested parties when a probate petition is filed in the state of California. Previously, this wasn’t mandatory, and heirs might not have even known about the proceedings until it was too late.
What This Means for You While the goal of this change is to ensure transparency, it could lead to more disputes—particularly over valuable assets like real estate. Disagreements about how to handle the property may increase the likelihood of litigation, which means potential delays as the California probate courts work through these contested cases.
Likely Increase in Litigation
With stricter notification requirements, AB 2016 could bring a rise in contested cases. If heirs disagree on the sale or distribution of property, for instance, a court may need to get involved. This could result in a “partition action,” where the court either divides the property or forces its sale, with proceeds going to the heirs.
In Summary
California’s probate reform aims to modernize the system and make it easier for heirs to access their inheritance. By raising the small estate limit and focusing on primary residences, AB 2016 should simplify probate for many families. However, it’s essential to be aware that the new notification rules and increased likelihood of disputes could lead to longer probate times and added stress for heirs.
Looking for an Inheritance Advance Company in California? Probate Advance is here to help.
At Probate Advance, we understand that probate can be a lengthy, complicated process. If you’re waiting on inheritance funds, we can provide a way to access your funds sooner. Our team offers a reliable, fast, and transparent solution, helping you get the funds you need without the burden of debt.
If you’d like to learn more about advancing your inheritance or are ready to get started, reach out to Probate Advance today. Let us help you navigate these probate changes and unlock the funds you’re entitled to, quickly and easily.
