California’s New Probate Threshold Starting April 1st, 2025: What It Means for Homeowners and Heirs in 2025.
Big news is coming for California homeowners and heirs: as of April 1, 2025, estates with primary residences valued under $750,000 may no longer require full probate. This update, introduced by Assembly Bill 2016 (AB 2016), could simplify property transfers and save families time and money—especially here in California, where our real estate market spans a wide range of values and opportunities. At Legacy Homes Realty, serving the Inland Empire, we’re excited to share what this change means for you, whether you’re planning your estate, inheriting a property, or looking to buy or sell in California.
We first learned about this new change from Paul Horn, a respected probate attorney with the Paul Horn Law Firm, whose recent article broke down the details (you can read the full details at paulhornlawfirm.com). With his expertise in mind, let’s explore how this new law could affect California’s homeowners, heirs, and real estate opportunities—and why working with the right team (agents and attorneys alike) is key to making the most of it.
Why Probate Has Been a Hurdle in California
If you’ve ever dealt with probate as a buyer, seller, or heir, you know it’s no picnic. Probate is the court-supervised process of transferring a deceased person’s assets—like their home—to their heirs. In California, it’s known for being slow (often a year or more) and costly, with attorney and executor fees taking a chunk out of the estate. For a $600,000 home—a common price point in California—that could mean tens of thousands just in fees, plus months to years of waiting before the property can be sold or transferred.
Until now, any estate worth more than $184,500 had to go through formal probate unless it was set up in a trust or qualified for an exemption. In a state like California, where median home prices often exceed that low threshold, most homes end up in probate if the owner didn’t plan ahead. For families inheriting a cozy suburban house or a starter home in a growing community, this often led to delays, legal hassles, and unexpected costs.
Enter AB 2016. Starting April 1, 2025, the probate threshold for primary residences jumps to $750,000. This means many California homes could skip the full probate process, using a simpler affidavit or summary procedure instead. For California, where property values vary widely, this could be a game-changer—but it also underscores the value of planning ahead.
How the $750,000 Threshold Changes Things
Here’s the breakdown: if a primary residence is worth $750,000 or less and the total estate doesn’t exceed that value with other assets, heirs can avoid the drawn-out full probate process. Instead, they’ll use a faster, less expensive method to transfer ownership. Think of it like a shortcut—less court time, fewer fees, and a quicker path to selling or keeping the home.
In California, this fits the market beautifully in many areas. Suburban neighborhoods or up-and-coming regions often feature homes in the $500,000 to $650,000 range—well under the new cutoff. A 3-4 bedroom charmer in California appraised at $600,000, could now transfer to heirs in months rather than a year or more. That’s huge for families who want to settle an estate without losing momentum—or money.
But it’s not that simple—there’s a small twist: This only applies to primary residences. That rental property you own in a downtown or that vacant home off a scenic highway? Those don’t qualify. And if the estate includes cash, cars, or other assets that push the total over $750,000, full probate might still be on the table. At Legacy Homes Realty, we’ve seen how these details trip people up—which is why we recommend pairing with an expert Probate attorney of your choice or with probate attorney Paul Horn to navigate the fine print and make the process easier based on your personal scenario.
A Boost for California’s Real Estate Market
At Legacy Homes Realty, we see this change as a win for the California real estate market. Faster transfers mean more homes hitting the market sooner, which is great news for buyers and investors. Probate sales have always been a niche in California—think fixer-uppers in charming towns or family homes in established neighborhoods. But they’ve often come with delays that frustrate everyone involved. With the new $750,000 threshold, properties under that value could close in as little as 90 days, compared to the year-long slog of traditional probate.
For sellers—especially heirs living out of state—this speed can make all the difference. Imagine inheriting a $600,000 California home but living in New York or Nevada. Instead of waiting a year to sell, you could list it by summer, cashing out or passing it to a new owner without the headache. For buyers, it’s a chance to scoop up properties before they linger in legal limbo. And for investors, quicker turnarounds mean more opportunities to flip or rent in a market that’s as diverse as California itself.
The Planning Piece: Trusts Still Matter
While the new threshold is exciting, it’s not a magic wand. Paul Horn points out that it only helps if the estate fits the criteria—and even then, complications like creditor claims or family disputes can slow things down. We’ve worked with clients who inherited homes without clear plans, and the process still got messy despite the “simplified” rules.
Picture this: a California couple passes away, leaving a $650,000 home to their three kids. No will, no trust—just a deed and good intentions. Even with the new law, the heirs need court filings, an appraisal, and a waiting period. If one kid wants to sell and the others don’t, you’ve got a standoff. Toss in a surprise lien or a Medi-Cal reimbursement claim, and that shortcut evaporates and it’s not an option anymore.
This is where a living trust shines. It’s something we encourage every homeowner to discuss with a probate attorney. A trust skips probate entirely—regardless of value—keeping things private and fast. For a $650,000 home, a trust might cost a couple thousand to set up, versus $15,000+ in probate fees. Plus, with California’s values trending upward (driven by demand and lifestyle appeal), a trust keeps your plan future-proof as your home edges toward or past $750,000 threshold home limit.
The New Key Changes to the Probate Law (AB 2016) in 2025
- Exclusion of Primary Residence: Homes valued up to $750,000 will no longer be subject to full probate.
- Applies to Deaths on or After April 1, 2025.
- Higher Value Limit for Succession Petition: Estates can now use a “Petition to Determine Succession to Real Property” for homes up to $750,000—avoiding full probate.
- More Property Exempt from Probate: Combined assets up to $934,500 may now qualify for this streamlined process ($750,000 for the home + $184,500 in cash). Consult with attorney.
- Clearer Definition of “Primary Residence”: It’s the decedent’s main home, regardless of whether they lived there at the time of death.
- All Heirs Must Sign Court Documents.
- At Least 40 Days Must Pass After Death Before Filing.
- A Probate Referee Must Appraise the Home.
- Done Right, This Could Save months and years in Probate Court!
What California Residents Can Do Now
Whether you’re a homeowner, heir, or buyer, here’s how to get ahead of the April 1, 2025, change:
- Know Your Home’s Value: Let’s get a free market analysis from Legacy Homes Realty to see where your property stands. If it’s under $750,000, you’re in the new threshold’s sweet spot or get a full appraisal done.
- Talk to a Probate Expert: Reach out to Paul Horn or another attorney to review your estate plan—or create one. A trust might be your best bet.
- Plan with Your Family: Avoid surprises by telling your heirs what you want for your home—sell it, keep it, or split it.
- Work with a Local Agent: If you’re inheriting or selling, we can help you move fast, whether it’s a probate sale or a simplified transfer.
- Stay Market-Savvy: California’s real estate is dynamic. Knowing when to sell or buy can maximize your return.
The California Advantage with Legacy Homes Realty
This new probate $750,000 threshold home limit is a gift for California, where homes range from affordable gems to million-dollar estates. But it’s not a replacement for smart planning. From our base in the Inland Empire, we’re here at Legacy Homes Realty to help you seize the opportunity—whether that’s selling an inherited home, buying a probate property, or advising your family on the next steps.
Let’s team up with pros like Paul Horn (https://www.paulhornlawfirm.com) to keep your real estate journey smooth and stress-free. We understand losing a loved one is never easy, and we’re here to help make this transition as smooth as possible for you and your family.
Ready to chat? Contact Legacy Homes Realty today, and let’s make sure your California property stays a legacy worth celebrating—not a probate puzzle to solve for months and years.
Disclaimer: We are not attorneys and do not provide any legal advice. Please consult a real estate or probate attorney for all your legal matters.
Contact us today for all your real estate needs
Disclaimer: We are not attorneys and do not provide any legal advice. Please consult a real estate or probate attorney for all your legal matters.
