California raised the probate exemption to $750,000.
AB 2016 took effect April 1, 2025. Many estates that required full probate a year ago can now use a simplified procedure — faster, cheaper, and less stressful for heirs.
AB 2016 created two important changes to California probate exemptions: a higher small-estate cap and a brand new primary-residence carve-out.
Amounts shown are the gross value thresholds. The $750,000 exemption applies specifically to the decedent’s primary residence. Other assets still fall under the $208,850 small-estate cap.
AB 2016 explained.
Assembly Bill 2016, signed into law in 2024 and effective April 1, 2025, represents the most significant update to California’s probate exemption thresholds in years. The bill amended California Probate Code sections 13150 and 13151 to create a new pathway for primary residences valued up to $750,000 to bypass full formal probate.
Before AB 2016, the small-estate exemption sat at $184,500 — a figure that had not kept pace with California’s rising home values. Any estate exceeding that cap required full probate, a process that typically takes 12 to 18 months and can cost thousands in court fees, attorney fees, and appraisal costs. In many California counties where median home values exceed $600,000, almost every primary residence triggered full probate.
AB 2016 addressed this by doing two things: raising the general small-estate cap to $208,850 (indexed for inflation going forward) and creating a brand-new $750,000 exemption specifically for the decedent’s primary residence. This means that a home worth up to $750,000 can now pass to heirs using a simplified court procedure under Probate Code §13150, cutting the timeline from over a year to roughly 2 to 4 months.
Two thresholds, one big change.
Primary residences under $750,000 skip full probate
The headline change: if the decedent’s primary residence is valued at $750,000 or less (gross value, not equity), it qualifies for a simplified petition under Probate Code §13150. Heirs file a petition with the superior court, attend one hearing, and receive an order transferring the property. No full administration, no court-appointed personal representative, no years-long case management. The savings in time and legal fees are substantial.
Small-estate threshold rose from $184,500
For estates that don’t include a primary residence — or include a residence valued over $750,000 — the general small-estate cap increased to $208,850. This covers personal property, bank accounts, vehicles, and other assets. The cap is now indexed for inflation, so it will adjust automatically every few years without needing new legislation.
Eligibility for the primary-residence exemption
To use the $750,000 exemption, the property must have been the decedent’s primary residence. Vacation homes, rental properties, commercial buildings, and vacant land do not qualify. The gross value of the home (what it would sell for, not the equity minus the mortgage) must be $750,000 or less. The decedent must have died on or after April 1, 2025. The total estate outside the primary residence must also fall under the $208,850 small-estate cap, or the simplified procedure may not be available.
AB 2016 is not a probate elimination
If the primary residence is valued above $750,000, full probate is still required. AB 2016 does not change the rules for trust administration (trusts already avoid probate). It does not change how court confirmation hearings work for limited-authority sales, how probate referees appraise property, or the requirements for creditor notifications and estate tax filings. It also does not apply to non-primary residences — rental properties, second homes, and commercial real estate remain subject to the existing rules and thresholds.
What this means for California heirs
In practical terms, AB 2016 means thousands of California families each year will avoid full probate on inherited homes. Counties with median home values under $750,000 — Riverside, San Bernardino, Sacramento, Fresno, and many others — will see the biggest impact. Heirs in these areas can expect a faster, less expensive process: file the §13150 petition, attend one court hearing, and receive the property transfer order in 2 to 4 months instead of the 12 to 18 months full probate typically requires.
What to do next.
If you believe an inherited home may qualify for the AB 2016 primary-residence exemption, here is the recommended sequence:
- Determine the date of death. The exemption only applies if the decedent passed away on or after April 1, 2025.
- Confirm it was the primary residence. The property must have been the decedent’s principal place of living at the time of death.
- Get a date-of-death valuation. A probate referee or licensed appraiser can establish the gross value. If it is $750,000 or less, the exemption may apply.
- Consult a probate attorney. The §13150 petition requires court filing and a hearing. An attorney will prepare the paperwork and represent you in court.
- Coordinate the property transfer or sale. If the heirs plan to sell the home, a probate real estate advisor can manage the process from valuation to closing.
Every situation is unique. The information above is general guidance — not legal advice. Consulting with a California probate attorney is the best first step.
AB 2016, answered.
Does the $750,000 threshold include the mortgage balance?
No. The $750,000 threshold is based on the gross fair market value of the property — what it would sell for on the open market — not the equity. A home worth $800,000 with a $700,000 mortgage does not qualify; the gross value exceeds the cap regardless of the loan balance.
What about properties owned in a trust?
AB 2016 primarily affects properties that would otherwise go through probate. If the home is already held in a revocable living trust, it typically passes to beneficiaries without probate regardless of value — the AB 2016 exemption is not needed. Trust administration remains the faster path for trust-owned homes.
Does AB 2016 apply to mobile homes or manufactured homes?
Yes, if the mobile or manufactured home was the decedent’s primary residence and is classified as real property (attached to land the decedent owned). The same $750,000 gross value threshold applies. Mobile homes classified as personal property may follow different rules under the California Probate Code.
Will the $750,000 threshold increase over time?
The $208,850 small-estate cap is indexed for inflation and will adjust automatically. As of the current law, the $750,000 primary-residence exemption is not inflation-indexed — it would require future legislation to raise it. Given California’s rising home values, further increases are possible in future legislative sessions.
Can I sell the home before filing the §13150 petition?
It depends. If the heirs want to sell, the sale typically happens after the court order transferring the property to them is issued. Selling before the exemption is granted can complicate the process. A probate real estate advisor can help sequence the sale and the petition to avoid delays and ensure a smooth closing.