Assembly Bill 2016 (AB 2016), effective April 1, 2025, introduced sweeping reforms to California's probate system designed to help families settle estates faster and with less expense.
For heirs navigating the often-overwhelming probate process, understanding these changes is essential.
Key Changes Under AB 2016
The most significant reform allows heirs to transfer a primary residence valued up to $750,000 without opening a full probate case.
This streamlined approach eliminates much of the court oversight previously required for modest family homes—a welcome relief in a state where even starter homes can carry substantial value.
Additionally, AB 2016 raised the Small Estate Affidavit threshold for personal property from $184,500 to $208,850. This adjustment, which accounts for inflation, means more families can use simplified procedures to claim bank accounts, vehicles, and other personal assets without formal probate proceedings.
What This Means for Timelines and Costs
These changes dramatically reduce probate timelines for qualifying estates. Where traditional probate often stretched 9–18 months, families with eligible properties may now complete the process in as little as 2–6 months.
The financial impact is equally meaningful: by simplifying procedures, AB 2016 reduces legal fees, court costs, and administrative expenses that historically consumed a significant portion of smaller estates.
New Complexities to Consider
However, AB 2016 is not without complications. The law introduces mandatory notice requirements to all heirs and beneficiaries—regardless of whether they stand to inherit under the will or trust.
This provision, designed to protect family members' rights, can slow down proceedings when heirs are difficult to locate or when family dynamics are contentious.
For estates involving multiple properties, business interests, or assets exceeding the new thresholds, traditional probate remains necessary. Contested estates—where beneficiaries dispute the will's validity or asset distribution—also fall outside these simplified procedures.
The Financing Gap Remains
For families, AB 2016 represents a double-edged sword. While it simplifies the process for smaller, uncontested estates, it does nothing** to address a persistent challenge: heirs often need immediate access to funds long before probate concludes.
Whether you're covering property maintenance, paying off liens, buying out co-heirs, or simply managing household expenses during the waiting period, the need for probate financing remains critical.
Even under AB 2016's accelerated timelines, two to six months without access to inherited assets creates real financial pressure.
Planning Ahead
Heirs should take proactive steps to understand how AB 2016 affects their specific situation.
Consulting with a probate attorney early can clarify whether your estate qualifies for simplified procedures. Equally important is understanding your financing options if you need liquidity before the estate settles.
At Capital Direct Funding, we specialize in helping California families bridge the gap between inheritance and access—providing the resources you need when you need them most.
Call us today at (626) 796-1680 or visit us at capitaldf.com
Sources: Probate & Estate Loan Market Analysis – California (2025); California Assembly Bill 2016