California’s New $750,000 Probate Law: Why It Does Not Replace a Living Trust
California has made it easier for some families to transfer a primary residence after an owner dies. But the new $750,000 procedure created by Assembly Bill 2016 does not eliminate court involvement, does not cover every type of property, and does not replace a properly created and funded living trust.
For families in Stockton and San Joaquin County, the new law can provide a valuable backup when no trust or other transfer plan is in place. It should not be treated as a reason to postpone estate planning.
Here is what the law actually does, what it does not do, and what families should consider before relying on it.
What AB 2016 Actually Changed
Assembly Bill 2016 was signed into law on September 21, 2024. For people who died on or after April 1, 2025, the law created a simplified court procedure for certain California primary residences with a gross value of $750,000 or less.
Instead of opening a full formal probate for the qualifying residence, an eligible successor may file a Petition to Determine Succession to Primary Residence with the California Superior Court. The court can then issue an order establishing who succeeded to the property.
The $750,000 amount applies to deaths occurring from April 1, 2025, through March 31, 2028. After that period, the amount may be adjusted under California law.
California also increased the small estate affidavit limit for qualifying personal property to $208,850 for deaths occurring on or after April 1, 2025. Personal property can include certain bank accounts, vehicles, and belongings. Assets excluded by law are not necessarily included when calculating that limit, so each estate must be evaluated individually.
These changes created useful options for some smaller estates. However, a simplified court procedure is not the same as avoiding court altogether.
Catch Number One: The Procedure Still Involves Court
The word “shortcut” can make families believe the house will transfer automatically. It will not.
The successor must file a petition with the Superior Court, provide the required information and supporting documents, obtain an appraisal from a California probate referee, give proper notice, attend a hearing, and receive a signed court order.
The petition cannot be filed until at least 40 days after the property owner’s death. After filing, the petitioner must deliver notice of the petition to each listed heir and devisee within five business days. California law also requires proper notice of the scheduled hearing.
Court scheduling, incomplete paperwork, appraisal delays, objections, or disagreements among family members can extend the process. Until authority to transfer the property is established, the family may be unable to complete a clean sale or transfer of title.
The procedure may be shorter and less expensive than full probate, but families should still expect a court process measured in months, not days.
Catch Number Two: Higher Valued Homes Can Be Excluded
The $750,000 limit is based on the gross value of the qualifying residence, not the owner’s equity after subtracting a mortgage or other debt.
For example, consider a home worth $800,000 with a $600,000 mortgage. Although the owner has only about $200,000 in equity, the home exceeds the $750,000 gross value limit and does not qualify for this procedure.
Current median prices in Stockton and San Joaquin County are below $750,000, so it would be inaccurate to say that most local homes are excluded. However, larger homes, homes in higher priced neighborhoods, rural properties with acreage, and properties that appreciate above the limit may not qualify.
The required probate referee appraisal establishes value. Families should not rely solely on an online estimate, tax assessment, mortgage balance, or what the owner originally paid for the home.
Catch Number Three: The Procedure Is Limited to a Qualifying Primary Residence
The $750,000 procedure applies to California real property that was the deceased person’s primary residence. California law states that the property does not necessarily have to be the person’s residence on the exact date of death.
Rental properties, vacation homes, investment properties, commercial properties, and vacant land do not qualify for this particular procedure merely because their value is below $750,000.
Owning another property does not automatically prevent a qualifying primary residence from being transferred through the new procedure. However, the additional property will need to be addressed separately and may require another transfer procedure or formal probate.
This distinction is important for families whose parents own a home plus a rental, vacant parcel, or other real estate. The primary residence may qualify while the other property does not.
The New Law Is a Backup, Not a Complete Estate Plan
AB 2016 can provide meaningful help when someone dies without placing a qualifying residence into a trust or arranging another valid method of transfer. It is best viewed as a backup procedure available after death.
It does not provide incapacity planning while the parent is alive. It does not appoint someone to manage finances or health care decisions. It does not automatically cover every asset. It also does not eliminate every issue involving creditors, taxes, ownership disputes, beneficiary disagreements, or title problems.
Families should also understand that a person receiving property through the simplified procedure may become personally liable for certain debts of the deceased person, subject to limits and defenses provided by California law. This is one reason to obtain legal advice before choosing between a simplified petition and formal probate.
Why a Properly Funded Living Trust May Still Be the Better Plan
A properly created and funded living trust can generally keep assets titled in the trust out of probate. The phrase “funded” is critical. Signing a trust document alone does not automatically transfer a home into the trust. The property usually must be transferred by a properly prepared and recorded deed.
Unlike the AB 2016 petition, a living trust does not use the $750,000 qualification limit. A trust may hold a primary residence, rental property, investment property, and other properly transferred assets.
A trust can also address incapacity. If the owner becomes unable to manage financial affairs, a properly drafted trust may allow the successor trustee to manage or sell trust property for the owner’s benefit, subject to the trust terms and applicable law.
After the owner dies, the successor trustee can begin administering assets properly held in the trust without opening a full probate for those assets. Administration is not always immediate or effortless. The trustee may still need to address notices, debts, taxes, title matters, trust instructions, and beneficiary rights. But court supervision is generally not required unless a dispute or another legal issue requires it.
A trust also ordinarily provides more privacy than a court proceeding because the trust agreement is not routinely filed as a public probate case. Certain information may still have to be disclosed to beneficiaries, government agencies, financial institutions, or courts when legally required.
What a Mobile Notary Can and Cannot Do
Estate planning documents must be properly executed. Documents such as deeds used to transfer real estate into a trust generally require notarization before they can be recorded.
For a California notarization, the signer must personally appear before the notary and provide satisfactory evidence of identity under California law. Depending on the notarial act, the signer may sign in the notary’s presence or acknowledge a signature already placed on the document.
California identification rules are more flexible than simply requiring an unexpired government photo ID. Certain identification documents may be accepted if they are current or were issued within the preceding five years. California law also permits credible witnesses in limited circumstances when all legal requirements are satisfied.
As of 2026, California commissioned notaries generally cannot perform California remote online notarizations. A mobile notary can travel to a home, hospital, assisted living community, memory care community, or another agreed location so the signer can appear in person.
A notary verifies identity and completes the requested notarial act. A notary does not select legal documents, draft a trust, decide which notarization is required, or provide legal advice unless separately licensed and authorized to do so.
Quick Answers About California’s $750,000 Probate Procedure
Does the new law mean I no longer need a living trust?
No. The law provides a simplified court process for a qualifying primary residence after death. It does not provide a complete estate plan or incapacity plan. Whether a trust is appropriate depends on the person’s assets, family situation, goals, and legal needs.
What is the $750,000 limit based on?
It is based on the gross value of the qualifying primary residence as established through the required appraisal. The mortgage and other debts are not subtracted when determining whether the residence falls below the limit.
Is the AB 2016 procedure probate free?
It avoids a full formal probate for the qualifying residence, but it is not court free. It requires a filed petition, notices, an appraisal, a hearing, and a court order.
Does the procedure cover rental property?
No. A rental, vacation home, investment property, commercial property, or vacant land does not qualify for this particular $750,000 primary residence procedure.
What if my parent owns a home and a rental property?
The qualifying primary residence may still be eligible for the simplified petition. The rental property must be addressed separately and may require another procedure or formal probate.
Can a California notary notarize my documents online?
As of 2026, California commissioned notaries generally cannot perform California remote online notarizations. The signer must personally appear before the notary. A mobile notary can come to the signer’s location.
Does signing a trust automatically protect the home from probate?
Not necessarily. The home generally must be properly transferred into the trust. Families should confirm that the deed was prepared correctly, signed, notarized, and recorded with the appropriate county recorder.
Do Not Wait Until the Options Become Limited
The worst time to discover that a home was never transferred into a trust is after the owner has died. The worst time to finish incapacity documents is after the signer can no longer understand and execute them.
If an aging parent owns a home in Stockton or San Joaquin County, review the estate plan while the parent can still participate. Confirm that the trust was completed, the deed was recorded, the correct assets were transferred, and the power of attorney and advance health care directive are current.
Stockton Mobile Notary can refer you to a qualified estate planning attorney or legal document preparer for your specific situation. You may also use our simplified DIY estate planning platform to save a substantial amount of money. The platform is a self directed document preparation option and is not a substitute for individualized legal advice when your situation requires an attorney.
When your completed documents are ready for notarization, call or text Stockton Mobile Notary to schedule an in person signing at your home, hospital, assisted living community, or another convenient location.
Important Information
Stockton Mobile Notary provides notarization and document signing support. We do not select legal documents or provide legal advice. Estate planning and probate decisions can have serious legal and financial consequences. Consult a qualified California estate planning attorney regarding your particular circumstances.