When someone passes away, their estate has to be administered. The type of estate plan someone has, or lacks, determines how and where their estate will be administered. If someone passes away without an estate plan or with a Will, their estate is very likely to be administered through the court in what is commonly referred to as “Probate”. If their estate is subject to probate, the total value of their property can determine which probate procedure their heirs will be able to use.
Small Estate Probate Procedures
- Small Estate Affidavit: If the total value of the Decedent’s assets, on the date of death, are valued at $184,500 or less*, their heirs can use the 13100 Affidavit to transfer the asset or assets. (Cal. Prob. Code 13100, et seq.). No court procedures are required.
- Affidavit for Real Property of Small Value: If the Decedent owned real property at the time of their death and that real property is valued under $61,500.00**, then their heirs can use an Affidavit for Real Property of Small Value. This affidavit requires the use of a Probate Referee (State-appointed appraiser for probate matters) and requires a court filing. However, there are no court hearings involved and it is much less time consuming and more efficient than a full estate administration in probate court.
- Petition Determining Succession to Property: If the Decedent owned real property at the time of their death that is over $61,500** but the total value of your estate is still under $184,500*, their heirs can file a Petition Determining Succession to Property. This involves a court hearing and notice to all interested parties. However, it is still less time-consuming and more efficient than a full estate administration in probate court.
The assets considered in these determinations include real property, bank accounts, investment accounts, retirement accounts, life insurance policies, Corporations, LLC’s, vehicles, boats, and personal property/household items. If, upon the Decedent’s death, the asset is owned in their name alone with no beneficiary, then it is likely subject to probate.
Effective April 1, 2025, the following changes to the above summary procedures will be in place:
- Small Estate Affidavit Consideration: The Decedent’s primary residence will not be considered in the $184,500 threshold when determining applicability of the Small Estate Affidavit. However, that primary residence value cannot exceed $750,000 when making this determination. Note that the real property must have been the decedent’s primary residence AND the value of that residence cannot exceed $750,000.00.
- Petition for Determining Succession to Real Property: This Petition can now be used to claim the Decedent’s real property only if the real property was the Decedent’s primary residence and the value does not exceed $750,000.00.
- Increase in Total Value of Estates Subject to Summary Procedures: While the current law limits summary procedures to $184,500, the new law essentially provides summary procedures for estates up to $934,500: up to $750,000 for decedent’s primary residence plus $184,500 for personal property.
While these new laws will reduce the time spent administering a decedent’s estate, if applicable, and reduce probate court backlog, it still does not address the benefits that come with creating your estate plan. Under those summary procedures, the heirs and beneficiaries of the estate are set pursuant to state law. Under a proper estate plan, particularly with a Living Trust, the chosen beneficiaries, the timing of distribution, and the individuals administering the estate, e.g. Trustees, are set pursuant to your goals and your choices.
Each person’s circumstance is different and for proper advice, it is important to consult with an attorney regarding your situation. If you would like to learn more about your options, please contact us at 424-242-5021 or at info@altalegacylaw.com for a consultation.
*If the decedent died prior to April 1, 2022, the value limit is $166,250.00.
** If the decedent died prior to April 1, 2022, the value limit is $55,425.00.