In California, the Small Estate Affidavit is a simplified method for transferring assets from a decedent’s estate without formal probate. This process is available when the total value of the estate falls under a certain threshold, offering families a quicker, less expensive way to settle the estate.
California law allows estates valued at $184,500 or less to bypass the formal probate process using the Small Estate Affidavit. However, certain assets are excluded from this limit, such as property held in joint tenancy, assets with designated beneficiaries (like life insurance policies) and items placed in a living trust.
This affidavit process enables heirs to claim assets like bank accounts, vehicles or real estate without going through a court proceeding. Before submitting the affidavit, the heir must wait 40 days after the decedent’s death. This waiting period allows time for potential disputes or claims to arise, preventing complications.
The affidavit must include the estate details, proof that the estate qualifies under the small estate limit, personal identification of the heir and a certified copy of the decedent’s death certificate. The estate cannot be involved in formal probate proceedings, and the heir or beneficiary must sign the affidavit under penalty of perjury.
After 40 days, the affidavit can be presented to the institution holding the assets, such as a bank or the Department of Motor Vehicles. At that point, the asset holder is legally obligated to transfer the property without requiring probate court orders.
AB 2016: Changes coming in 2025
Assembly Bill (AB) 2016, signed into law in 2024, brings significant changes to the small estate affidavit process. Starting in April 2025, the small estate threshold will increase dramatically to $750,000, nearly four times the current limit. This adjustment reflects California’s rising property values, particularly in real estate markets where even modest homes often exceed $184,500.
Under AB 2016, estates valued at up to $750,000 will be able to use the simplified affidavit process to avoid formal probate. This expansion is expected to allow a greater number of middle-income families to take advantage of this streamlined procedure, particularly those with homes or other real estate assets that would have previously required formal probate due to the old threshold.
Additionally, the new law includes an inflation adjustment mechanism. Every three years, the $750,000 limit will be reviewed and adjusted to keep pace with inflation, ensuring that the process remains relevant as the cost of living and property values change over time.
The steps to use the Small Estate Affidavit remain mostly unchanged under AB 2016, except for the increased value limit.
The Small Estate Affidavit is a crucial tool for avoiding probate in California, and AB 2016’s new $750,000 limit starting in 2025 will significantly expand its use. This change will benefit families with higher-valued estates, helping them avoid the delays and costs associated with formal probate, while maintaining a simple, efficient way to transfer assets after death.
Send your questions to ccolan@colanlegal.com and use “Alpine Mountaineer estate planning question” as the subject. We’ll answer your questions in our upcoming issues.
This article is provided by your local estate planning attorney, Corina Colan.
The Law Office of Corina I. Colan / (909) 265-3315 / www.colanlegal.com
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