The California small estate affidavit limit is increasing to $750,000 on April 1, 2025!

California is set to implement a significant change to its probate laws. Starting April 1, 2025, the small estate affidavit limit will increase to $750,000. This adjustment will allow more estates to bypass full probate proceedings, potentially saving time and money for beneficiaries.

The new law, Assembly Bill 2016 (AB 2016), will raise the current threshold of $166,250 to $750,000 for estates to qualify for simplified probate procedures. This change applies to both personal property and real estate located in California. The increase aims to streamline the process for settling smaller estates and reduce the burden on the court system.

For many Californians, this update could mean a smoother transfer of assets after a loved one’s passing. Executors and beneficiaries may find it easier to handle estate matters without extensive legal proceedings. 

As the implementation date approaches, individuals involved in estate planning or administration should familiarize themselves with these new provisions to take full advantage of the simplified process when applicable.

What is a small estate affidavit and how do they work?

A small estate affidavit is a legal document that simplifies the process of transferring assets after someone passes away. It allows beneficiaries to claim property without going through a full probate proceeding.

This affidavit can be used when the total value of the deceased person’s estate falls below a specific threshold set by state law. The limit varies by jurisdiction and may change periodically.

To use a small estate affidavit, an heir or beneficiary must complete a form with details about the deceased, their assets, and the rightful heirs. This document is typically signed and notarized.

Once prepared, the affidavit is presented to institutions holding the deceased’s assets, such as banks or investment firms. These organizations can then release the funds or property to the designated beneficiaries.

Small estate affidavits offer several advantages:

• Faster asset distribution
• Lower costs compared to probate
• Reduced paperwork and legal complexity

It’s important to note that these affidavits have limitations. They generally cannot be used for:

• Transferring real estate
• Settling large estates
• Resolving complex inheritance disputes

Before using a small estate affidavit, individuals should verify their eligibility and understand the specific requirements in their state.

How do I get a small estate affidavit in California?

Obtaining a small estate affidavit in California involves several steps. First, acquire the necessary form from the probate court in the county where the deceased resided. This can be done online, in person, or through a legal service like Laguna Legal.

Next, gather the required documents:

• Proof of identity
• Evidence of property ownership
• Death certificate
• Inventory and Appraisal form
• Asset valuation documents
• Will or trust (if applicable)
• Signatures from beneficiaries

Complete the form with accurate information and attach all necessary documents. The affidavit must be notarized to be valid.

It’s important to wait 40 days after the death before proceeding. This allows time for any potential probate cases to be filed.

Once prepared, the affidavit can be used along with a certified death certificate to transfer property. Some institutions may have their own affidavit forms in addition to the Small Estate Affidavit, so it’s advisable to check with them directly.

Small estate affidavits offer a quicker alternative to probate for estates valued under a certain threshold in California. This process can significantly reduce the time and costs associated with transferring assets after a person’s death.

What is the small estate affidavit in California increasing to and when?

The California small estate affidavit limit is set to undergo a significant change. On April 1, 2025, the threshold will rise to $750,000.

This allows for a simplified transfer of property including  real estate valued under this new limit without the need for a full probate process.

The change stems from Assembly Bill 2016 (AB 2016). It represents a substantial expansion of the small estate affidavit threshold in California.

Benefits of this increase include:

• Reduced complexity for families handling estates
• Lower costs associated with property transfers
• Faster resolution of estate matters

Many more families will now be able to use the small estate affidavit process. This can help avoid the often lengthy and expensive formal probate proceedings.

Prior to this new increase, what were the previous limits for small estate affidavits for California?

California’s small estate affidavit limits have increased over time. 

Prior to 2020, the maximum amount for avoiding probate through a small estate affidavit was $150,000.

In 2020 the limit was increased from $150,000 to  $166,250.

The on April 1, 2022 the limit increased again.  For those who died on or after April 1, 2022, the limit increased to $184,500. This higher threshold allowed more estates to qualify for the simplified affidavit process.

These previous amounts applied to both probate code section 13100 small estate affidavits and the total gross value of the estate.

Additionally, there was a separate limit for transferring real property of low value. This threshold increased from $50,000 to $55,425 in recent years.

The one item that never changed is that the small estate affidavit process cannot be initiated until at least 40 days have passed since the decedent’s death. This waiting period applies regardless of the estate’s value.

How can Laguna Legal help with CA Small Estate Affidavits?

Laguna Legal offers expert assistance with California small estate affidavits. Our experienced team can guide clients through the process of preparing and filing these documents.

Our team will carefully prepare all necessary paperwork, ensuring it meets legal requirements. We can also assist with gathering supporting documents and filing the affidavit with the appropriate court.

For clients dealing with more complex situations, Laguna Legal offers guidance on alternative options if the estate does not qualify for the small estate process. Our comprehensive approach aims to simplify the transfer of assets and minimize stress for bereaved families.

If you are dealing with the transfer of an estate or want to plan for the future, Laguna Legal is here to help. Contact us today!