California Raised the Probate Limit to $750,000 — Do You Still Need a Living Trust?

If you’ve heard that California “raised the probate limit to $750,000,” you may be wondering whether the living trust you have — or the one you’ve been putting off — still matters.

It’s a fair question. Assembly Bill 2016, which took effect for deaths on or after April 1, 2025, significantly expanded California’s simplified probate procedures. For the first time in years, the rules reflect something closer to actual California home values. But the headline number doesn’t tell the whole story, and for most homeowners, the answer to “do I still need a trust?” is still yes.

Here’s how the new rules actually work.

What Changed Under AB 2016

California has long offered simplified procedures that let smaller estates skip formal probate. AB 2016 updated the two most important numbers:

1. The small estate affidavit threshold rose to $208,850. For deaths on or after April 1, 2025, successors may be able to collect certain qualifying assets of a decedent using an out-of-court affidavit if the estate, calculated under the applicable statute, is worth $208,850 or less. Some assets are excluded from that calculation or subject to separate procedures.

2. A qualifying primary residence worth up to $750,000 may now pass without full probate. This is the change making headlines. Under the prior rules, the real property threshold was so low ($184,500) that it was effectively useless for California homes. Now, if the statutory requirements are met, a decedent’s primary residence with a gross value up to $750,000 can be transferred through a Petition to Determine Succession to Real Property — a streamlined court proceeding — instead of full probate administration.

For families who lose a loved one without an estate plan, these are genuinely helpful changes. Full probate in California routinely takes a year or more and involves statutory fees calculated on the gross value of the estate. Avoiding it is a real benefit.

So why do estate planning attorneys still recommend living trusts? Because the simplified procedures come with limits that matter.

Five Things the $750,000 Rule Doesn’t Do

1. It’s not automatic — it’s still a court proceeding. The primary residence procedure requires filing a petition in Superior Court, giving notice, and obtaining a court order. It’s faster and less expensive than full probate, but your family is still going to court, still on the court’s timeline, and the process is still part of the public record. A properly funded living trust can ordinarily transfer the home without probate court involvement, although court proceedings may still be necessary in some circumstances.

2. It only covers a qualifying primary residence. Rental property, vacation homes, vacant land, and out-of-state property generally do not qualify for this procedure. For real estate investors — and this region has many — the new rule may do little. A second property can require a different transfer procedure or, depending on the estate, full probate.

3. The valuation rules matter. Eligibility depends on the property’s value as determined under the applicable statute, and a mortgage may not reduce the value used for the threshold. In Riverside County, where typical home values sit near or above that line, many families may miss the threshold entirely — and home values tend to rise faster than the Legislature updates these numbers.

4. It doesn’t decide who inherits — or prevent disputes. The simplified procedure is a transfer mechanism, not a plan. If there’s no will, the property passes by intestate succession, which may not match what your loved one would have wanted — particularly in blended families. And notice requirements mean every interested party has an opportunity to object.

5. It does nothing for incapacity. A trust-based estate plan works during your lifetime: if you become incapacitated, your successor trustee can manage trust assets, including a home and finances held in the trust, without a court-supervised conservatorship of the estate. A trust does not necessarily eliminate the need for a conservatorship of the person or address assets outside the trust. Probate shortcuts only apply after death. For many families, incapacity planning is the more important half of the plan.

Where the New Rules Genuinely Help

To be balanced: if a loved one has already passed away without a trust, the AB 2016 procedures may save your family significant time and cost — and figuring out which procedure applies is exactly the kind of question worth asking an attorney early. Surviving spouses should also know about the Spousal Property Petition, a separate streamlined path we covered in a recent article, which may be available for qualifying property passing to a surviving spouse or registered domestic partner.

These tools are good news for families cleaning up after the fact. They’re just not a substitute for planning ahead.

Frequently Asked Questions

What is the California probate threshold in 2026?
For deaths on or after April 1, 2025, the general small estate threshold is $208,850 for estates calculated under the applicable statute. If the statutory requirements are met, a decedent’s primary residence valued up to $750,000 can be transferred through a separate streamlined court petition under AB 2016.

Does AB 2016 mean I don’t need a living trust?
For most California homeowners, no. The simplified procedure still requires a court proceeding, applies only to a qualifying primary residence within the value cap, doesn’t control who inherits, and provides no incapacity protection. A properly funded trust can help address these issues, although it may not eliminate every potential court proceeding.

Does the $750,000 limit look at equity or market value?
Eligibility depends on the property’s value as determined under the applicable statute. A mortgage may not reduce the value used for the threshold, so consult an attorney about the valuation rules for the estate.

What if the home is worth more than $750,000?
Unless another transfer method applies, such as a spousal property petition for qualifying property or a valid nonprobate transfer through a trust or joint tenancy, the estate may need full probate. Whether a particular asset avoids probate depends on its title, beneficiary designations, and the facts of the estate.

The Bottom Line

AB 2016 made California probate less punishing for modest estates — and that’s worth celebrating. But the new thresholds are a safety net, not a plan. A properly funded revocable living trust can help avoid probate for trust assets, control who inherits, provide for management of trust assets during incapacity, and keep many estate matters private, although it cannot prevent every potential court proceeding.

If you own a home in California and don’t have a trust — or haven’t reviewed yours since these rules changed — now is a good time. Schedule a consultation with Tyler Law’s estate planning team, or get started with our online estate planning tool today.

This article is for general informational purposes and is not legal advice. Whether a simplified procedure applies depends on the facts of each estate.