Probate Reform In California Aims To Simplify Home Inheritance

Starting April 1, 2025, California expanded its definition of “small estates” allowing more heirs to avoid the long and costly probate process—if they meet certain criteria. For the first time, a primary residence worth up to $750,000 may qualify for a faster transfer without full probate.

Probate is the court-supervised process of validating a will, paying debts, and distributing assets. In California, it often takes 12–18 months and can be expensive and stressful. To ease this, small estates can bypass probate if their probate assets—property owned solely in the decedent’s name without a beneficiary—fall below a set limit. These typically include bank accounts, vehicles, stocks, and personal property.

Previously, only estates under $184,500 qualified. That limit rises to around $200,000 in April 2025, and for the first time, certain real estate may also be included. Eligible heirs can now petition the court to transfer ownership, often within 60–90 days—saving time and money. But they must notify all legal heirs and beneficiaries, even those not named in the will. This added transparency can help prevent legal issues, but may also trigger disputes. If no one objects and the court approves, the transfer proceeds without full probate.

Still, counting on your estate to stay under the threshold is risky. The only sure way to avoid probate is by placing assets in a revocable living trust.

Dean Powell
Keller Williams Realty
CA DRE # 02108792
925-765-8584
DeanPowell@kw.com
DeanPowellHomes.com