AB 2016: California’s New Era of Small Estate Simplification

​​For years, families with modest estates have faced extensive delays and mounting legal costs simply to transfer a loved one’s assets following their passing. In response, California Assembly Bill 2016 (AB 2016) introduces meaningful reform aimed at simplifying the estate administration process for small estates.

Whether you are a professional fiduciary or a family member settling your loved one’s estate, understanding AB 2016 is crucial. This new law may significantly reduce the burden of probate for qualifying estates — offering a faster, more cost-effective path forward.

What is AB 2016?

Signed into law in 2024 and effective as of January 1, 2025,  AB 2016 modernizes and expands California’s Probate Code related to “small estate petitions”. Targeted at reducing the pressure on California’s overburdened probate courts, the legislation addresses long-standing criticism about inefficiencies and accessibility within the probate process.

The bill, sponsored by Assembly Member Brian Maienschein, updates the California Probate Code to expand eligibility for summary procedures, streamlining estate transfers when the total value of assets falls below a newly increased threshold.

Expanded Definition of a Small Estate

Prior to AB 2016, California’s definition of a “small estate” was limited to $184,500. Under the new law, this threshold increases to $750,000 for “real property” that was the decedent’s primary residence, aligning more closely with today’s economic realities and asset valuations — particularly in high-cost areas of the state.

This expanded threshold allows a broader population to avoid formal probate through the use of simplified procedures, assuming other eligibility criteria are met.

Streamlined Procedures Introduced

AB 2016 makes several practical changes to how small estates can be administered – especially when the primary asset is a personal residence. The law removes barriers that previously required full probate for modest estates and instead provides clear, simplified steps that can now be used under the updated statute. This includes:

• The most significant update is the increase in the real property value cap from $166,250 to $750,000 provided the property was the decedent’s primary residence. Important to note, this does not apply to investment properties or secondary residences.

• For estates involving a qualifying residence, heirs can now file a petition with the superior court to request the transfer of a property. This is far more efficient than initiating a full probate, which can take 9-18 months or longer. Note, the petition must include a copy of the death certificate, a legal description of the property, and declarations of entitlement from the beneficiaries.

• The new procedures shorten the waiting period for using summary affidavits. A 5 business day notice window is now required after the petition is filed. All known heirs/beneficiaries must be notified promptly to respond or contest the petition.

• Starting April 1, 20218, the $750,000 threshold will be adjusted every three years based on the Consumer Price Index (CPI). This forward-looking feature ensures that the law stays relevant in future economic conditions, particularly California’s volatile real estate market.

These adjustments make AB 2016 a powerful tool for fiduciaries and family trustees looking to transfer modest estates with efficiency, clarity, and reduced cost. However, careful adherence to the law’s guidelines and deadlines is essential to avoid liability and protect beneficiary interests. 

What AB 2016 Means for Families & Fiduciaries

The passage of AB 2016 marks a necessary shift in how small estates can be handled in California. For both professional fiduciaries and family members in charge of their loved one’s estate, this new framework brings welcome flexibility. 

Arguably most crucial to those handling decedent estates is the reduced administrative burden. While a formal probate process demands strict compliance with extensive filings, court hearings, and public notices, AB 2016’s revisions offer simplified paperwork for real property petitions, elimination of court-supervised estate inventory and accounting, and quicker timelines for finalizing distributions. This new law opens the door for fiduciaries and estate planners to think creatively, and most importantly, proactively, when advising clients with modest estates. 

Imagine a single California-retiree owns a condo worth $725,000 with no other significant assets outside of a checking account and personal property. Under the previous rules, her estate would likely have required formal probate because the real estate valuation exceeded the $166,250 limit. Now, under AB 2016, because the condo was her primary residence and its value is below the $750,000 cap, her heir can use the new petition-based process to transfer ownership without opening a full probate case. 

As a result, her estate could be settled in a matter of weeks, rather than months or years, her beneficiary saves on legal fees and court costs, and the fiduciary avoids managing a drawn out probate process for a relatively simple estate. 

This example demonstrates how strategic planning–like titling assets properly, keeping up-to-date appraisals, and understanding the composition of an estate–can ensure families benefit from AB 2016’s simplified structure. 

Limitations and What AB 2016 Doesn’t Change

While AB 2016 offers a welcome simplification of the small estate process, it’s not a blanket solution for all estate administration challenges. Fiduciaries must be mindful of what this legislation doesn’t address or change, especially when advising clients or navigating the legal landscape of estate management. 

• While AB 2016 expands access to simplified procedures for estates with primary residence under $750,000 in gross value, that ceiling remains a hard limit. Any estate that exceeds this threshold even slightly must follow traditional channels.

• The law simplifies procedures, but has no bearing on taxation. Fiduciaries must still consider federal and state tax thresholds, property tax reassessments under Proposition 19, and capital gains implications for beneficiaries.

• If the decedent’s property is already held in a trust, AB 2016 does not change or streamline that process and standard trust administration rules still apply.

• Beneficiaries may still contest the value of property, allocation of remaining estate assets, and fiduciary actions taken during the administration.

• The new procedures do not apply to decedent estates where the death occurred prior to April 1, 2025.

Though streamlined, the petition for a streamlined property transfer still involves the court system. Fiduciaries must properly complete and file the petition (Form DE-310), adhere to timelines and notice requirements, and provide clear evidence supporting the transfer (including the original will, if available, and property valuable documents). 

Caution Still Required

AB 2016 simplifies, but doesn’t solve for everything. Professional fiduciaries and trustees should view it as one more tool in the toolbox – one that works well under the right circumstances, but still requires careful analysis, due diligence, and sometimes, traditional probate when complexity arises. 
Need guidance on AB 2016? Prudent Investors works with fiduciaries and trustees across California to provide estate administration support and financial insight. If you’re managing a small estate and want to know if these new rules apply, contact our team today.