There's been some buzz in California estate planning circles lately. As of April 1, 2025, Assembly Bill 2016 officially raised the bar for a "simplified" probate process. Families with primary residences valued at $750,000 or less can now use a streamlined court petition instead of full-blown probate.
Sounds pretty great, right? Finally, some relief for ordinary families who don't want their loved ones tangled up in probate court for 18 months after they're gone.
But before you cancel that trust consultation, let's talk about what this "shortcut" really means, and why your living trust might still be the MVP of your estate plan.
What AB 2016 Actually Does
Let's start with the good news. Before this law, if you owned real estate and passed away without a trust, your family was likely facing formal probate. That meant:
- Months (or years) tied up in court
- Legal fees eating into the estate
- Public records anyone could look up
- Stress, paperwork, and waiting
AB 2016 created a Petition to Determine Succession to Real Property specifically for primary residences under $750k. It's designed to let your heirs transfer the home without going through the full probate circus.
In theory, this means faster transfers, lower costs, and less red tape. For families with modest estates and a single home, it could be a real game-changer.
The Reality Check: Is It Really a "Shortcut"?
Here's where we need to pump the brakes a little.
Yes, AB 2016 is an improvement over traditional probate. But it's not exactly a magic wand. Even with this "simplified" process, your family will still need to:
- File a court petition. That means hiring an attorney or spending hours figuring out the paperwork themselves.
- Pay filing fees. Court costs don't disappear just because the process is shorter.
- Wait at least 40 days. There's a mandatory waiting period before the transfer can happen.
- Put everything on public record. Unlike a trust, this process is entirely public. Anyone can see what you owned and who got it.
So while it's faster than full probate, it's not exactly instant or private. And if there are any complications: like a title issue, a creditor claim, or family disagreements: that "shortcut" can turn into a detour pretty quickly.
Why the Living Trust Is Still King
Don't get me wrong: AB 2016 is a step in the right direction. But a living trust does things this new law simply can't touch. Let's break it down.
1. Incapacity Protection (The Big One)
Here's the thing nobody likes to think about: what happens if you're alive but can't manage your own affairs?
Maybe you have a stroke. Maybe dementia creeps in. Maybe you're in a serious car accident and end up in a coma.
AB 2016 doesn't help you here. Not even a little. It only kicks in after you die.
A living trust, on the other hand, includes a successor trustee who can step in immediately if you become incapacitated. They can pay your bills, manage your property, and make financial decisions on your behalf: without going to court for conservatorship.
Conservatorship is expensive, invasive, and public. It's the kind of thing that can tear families apart. A trust prevents all of that.
2. Minor Children and Guardianship
If you have kids under 18, a court petition for your house doesn't do anything to protect them.
Who will raise your children if something happens to you? Who will manage the money they inherit until they're old enough to handle it responsibly? What if they get it all at 18 and blow it on a sports car?
AB 2016 has no answer to these questions.
Our Kids Protection Plan does. It lets you:
- Name legal guardians for your children
- Set up a trust to control how and when they receive their inheritance
- Protect assets from being squandered before they're mature enough to handle them
This is non-negotiable if you're a parent. A simplified probate process won't raise your kids or manage their money. A trust will.
3. Privacy Matters
Let's say your family successfully uses AB 2016 to transfer your home. Congrats! But now anyone with internet access can look up the court records and see:
- What property you owned
- How much it was worth
- Who inherited it
For most families, this isn't just uncomfortable: it's a potential security risk. Scammers, predatory lenders, and nosy neighbors love public probate records.
A living trust keeps your family's business private. No court filings. No public records. Just a quiet, dignified transfer of assets exactly as you intended.
4. What About Everything Else?
Here's the kicker: AB 2016 only applies to your primary residence.
If you own:
- A rental property
- A vacation home
- Commercial real estate
- Vacant land
- A timeshare (yes, really)
…then your estate is suddenly not eligible for the simplified process. You're back to full probate for everything.
And even if you only own your primary home, what about your bank accounts? Your retirement accounts? Your car? Your personal belongings?
California also raised the small estate affidavit threshold to $208,850 for personal property. But if your total assets exceed that: or if things are just complicated: your family could still end up in probate court.
A living trust avoids probate for all of your assets, not just your house. It's a comprehensive solution that works no matter how your estate is structured.
The Bay Area Reality
Let's be honest: if you're reading this from San Jose, Sunnyvale, Cupertino, or most other parts of the Bay Area, there's a good chance your home is already worth way more than $750,000.
According to recent data, the median home price in Santa Clara County hovers around $1.5 million. Even smaller homes in less trendy neighborhoods are often pushing $900k or more.
So for a lot of local families, AB 2016 is… nice in theory. But practically useless.
If your home is worth more than $750k, you're not eligible for the shortcut. Period. Your family will face full probate unless you have a trust in place.
So, Do You Still Need a Trust?
Here's the straight talk: AB 2016 is helpful for families with:
- A single primary residence under $750k
- Minimal additional assets (under $208,850 in personal property)
- No concerns about incapacity planning
- No minor children
- No desire for privacy
If that describes you, and you're comfortable with your family handling a court petition after you're gone, then maybe: maybe: you can skip the trust.
But for everyone else? The living trust is still the gold standard.
It protects you during incapacity. It protects your kids. It keeps your affairs private. It covers all your assets, not just your house. And it avoids probate entirely: no petitions, no waiting periods, no court involvement.
Don't Rely on the Court's "Mercy"
Look, I'm glad California is trying to make things easier for families. AB 2016 is a step forward.
But estate planning isn't about hoping the law catches up with your needs. It's about creating a plan that actually fits your life: right now.
You deserve more than a "shortcut" that only works in limited situations. You deserve a plan that protects you, your family, and your legacy no matter what life throws your way.
Ready to see if a trust makes sense for your family? Let's talk. We'll review your situation, explain your options, and help you create a plan that actually works: without the legal jargon or one-size-fits-all approach.
Because your family deserves better than "good enough." They deserve a plan that's built for you.