As published in the Salinas Valley Business Journal, March 2025
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By Chiara Veronesi, Attorney
California Assembly Bill 2016 (AB 2016), effective April 1, 2025, brings significant changes to the legal landscape for real property owners in California, particularly in how real estate is transferred after death. This bill aims to streamline the process for determining succession to real property, bypassing traditional probate court proceedings in the below instances.
Currently, estates with gross assets under $184,500 can pass to a decedent’s successor in interest through simplified proceedings that avoid the lengthy and expensive probate process: Small Estate Affidavits for personal property; Affidavits for Real Property of Small Value for real estate up to $61,500; and Petitions to Determine Succession to Real Property for real estate up to $184,500. However, due to the median cost of real property in California, these procedures for transferring real property are primarily reserved for fractional ownership interests. Any asset above that threshold not held in trust and with no beneficiary designation must go through probate.
AB 2016 introduces a simpler, more accessible legal process for determining succession to real property following a person’s death. Beginning on or after April 1, 2025, if a California resident passes away owning a primary residence valued up to $750,000, their successor in interest will be able to transfer title to that property though a Petition to Determine Succession to Real Property. If needed, in addition to this Petition, the successor in interest will also be able to use a Small Estate Affidavit to transfer non-real property assets with a gross value not exceeding $184,500. This amendment to the probate code will greatly reduce the number of probate proceedings in the State, expediting and simplifying the transfer of real property.
While AB 2016 facilitates the process for smaller estates, it does not replace the need for comprehensive estate planning, crucial for property owners with larger estates and more complex assets. A well-structured estate plan, including a will and trust, allows individuals to have control over how their assets are distributed after death and ensures that property is distributed efficiently and fairly. Without it, even under AB 2016, property ownership can still be contested. Heirs may disagree on the validity of claims or the distribution of property, which could lead to delays or further legal challenges.
In conclusion, California AB 2016 represents a significant step forward in simplifying the transfer of real property after death, especially for smaller estates. By bypassing much of the probate process, it reduces delays, legal fees, and the potential for administrative confusion. However, the bill does not eliminate the need for comprehensive estate planning. It remains essential for real property owners to have a clear estate plan in place to ensure that property is transferred according to their wishes, avoid disputes among heirs, and address the complexities that may arise with larger estates. By combining AB 2016’s benefits with strategic estate planning, property owners can more effectively navigate the future of real property succession in California.
Chiara Veronesi is in Noland Hamerly’s Estate Planning practice group and is based out of the firm’s Monterey office. A native of Italy, she is fluent in Italian and Spanish.
This article is intended to address topics of general interest and should not be construed as legal advice. © 2025 Noland, Hamerly, Etienne & Hoss