What Is AB 2016 in California Probate? Understanding the New $750K Threshold

California AB 2016 is a new law, effective April 1, 2025, that raises the simplified probate threshold for transferring a primary residence to $750,000.

This means if a loved one passes away without a trust and their home’s value is under $750K, their heirs can now use a faster, easier court process to transfer the home skipping formal probate in many cases.

It’s a major change for families in Los Angeles County and the San Gabriel Valley, where real estate values have historically forced even modest estates into full probate.

Who Qualifies Under AB 2016?

You may qualify for the simplified process under AB 2016 if:

• The decedent’s property was their primary residence.

• The home's gross value (not net after mortgage) is $750,000 or less.

• The decedent did not have a living trust covering the home.

• At least 40 days have passed since death.

• There’s no heir conflict regarding the home.

• All legal heirs are properly notified.

If all conditions are met, heirs can use a faster petition process to transfer the home without full probate supervision.

How Does the Simplified Process Work?

Here’s the basic AB 2016 transfer process:

1. Appraisal Ordered
   A court-appointed probate referee determines the fair market value of the home.

2. Petition Filed
   The heirs file a "Petition to Determine Succession to Real Property" with the county probate court.

3. Notice Given
   All interested parties are notified of the petition at least 15 days before the hearing.

4. Court Hearing Held
   A judge reviews the petition and, if no issues arise, approves the property transfer.

5. Property Title Transferred
   The court order is recorded with the county recorder, transferring ownership to the rightful heirs.

In many Los Angeles County and San Gabriel Valley cases, the entire process can be completed in a few months instead of over a year.

What Happens If the Home Is Over $750,000?

If the appraised gross value is over $750K, AB 2016 does not apply.

In that case:

• The heirs must go through formal probate unless the home was protected by a living trust or another legal tool.

• A full probate proceeding involves court-supervised sales, multiple hearings, and longer timelines.

This is why getting a professional appraisal early is critical — even a slight difference in valuation can determine which probate path you qualify for.

Can You Still Use AB 2016 if There’s a Mortgage?

Yes — mortgages do not count against the $750,000 threshold.

The court considers the gross fair market value of the property, not the net equity after debt.
Even if there’s a $700K loan, if the property is worth $749K, AB 2016 simplified transfer rules still apply.

What Are the Risks of Using AB 2016?

While AB 2016 is a huge benefit, there are potential risks:

• Conflicting heirs can derail the simplified process.

• Hidden debts or liens on the property could complicate transfer.

• Incorrect appraisals could disqualify eligibility.

• Primary residence disputes (especially if the decedent moved to assisted living) may arise.

Working with experienced probate professionals ensures these risks are identified and minimized early on.

Why AB 2016 Matters for Families in Los Angeles and the San Gabriel Valley

Before AB 2016, even modest homes triggered full probate because California’s old threshold ($184,500) was too low for the modern housing market.

Now, many middle-class families in Los Angeles and the San Gabriel Valley can transfer homes faster and cheaper, preserving equity and avoiding stress.

It’s a huge win — but only if the rules are followed carefully.

Need Help Understanding if You Qualify for AB 2016?

At The Borges Real Estate Team, we specialize in probate and trust real estate across Los Angeles County and the San Gabriel Valley.

We work hand-in-hand with probate attorneys and families to ensure homes are properly appraised, prepared for transfer, and sold (if needed) with clarity and compassion.

Not sure if AB 2016 applies to your situation?
Reach out today for a free, no-pressure consultation. We’re happy to walk you through your options.