Assembly Bill 2016: A Brief Explanation

Estate planning in California is getting a major update thanks to Assembly Bill 2016 (AB 2016), which was finalized on August 29, 2024, and takes effect January 1, 2025. This bill brings long-overdue modernization to how small estates are handled after someone passes away—making the process faster, clearer, and far more accessible for families across the state.

Whether you’re an estate planner, an executor, or a loved one left to handle the paperwork, understanding what’s changed under AB 2016 can help you make better, more confident decisions. The bill updates and simplifies key parts of the California Probate Code—specifically sections 13100 to 13101, 13150 to 13152, and 13154—while repealing section 13158, which was outdated and confusing.

Let’s break down what this new law really means, how it compares to the old rules, and what practical steps you may need to take under the updated system.

Raising the Value Threshold for a “Small Estate”

One of the most important changes under AB 2016 is an increase in the small estate limit. Before the bill, you could only use simplified procedures if the total estate value was below $184,500. That figure, while adjusted over time for inflation, hasn’t kept pace with California’s rising asset and property values. Under the new law, the threshold moves up to $200,000.

This means that more families will now be able to avoid formal probate—saving months of time, legal fees, and stress. If someone dies with assets under this limit, their heirs can use a straightforward affidavit process to collect property without going through the courts.

Streamlining the Affidavit for Personal Property Transfers

Another significant improvement is the update to how heirs can claim personal property, such as bank accounts or vehicles, using an affidavit. Previously, the affidavit had to be signed in person, and there were inconsistencies about what it needed to include. Many banks and financial institutions rejected affidavits simply because they didn’t like the format or because it wasn’t signed in front of them.

AB 2016 clears up that confusion. The new affidavit process allows for electronic signing and notarization (where permitted), making it easier to complete the paperwork remotely. The content of the affidavit is now standardized as well. It must include the decedent’s name, date and place of death, a declaration that probate isn’t needed, and a full description of the property. The affidavit must also confirm that the estate falls below the new $200,000 limit. Financial institutions are required to accept a properly executed affidavit and cannot reject it simply because it was completed electronically.

These changes give heirs a much more reliable and efficient way to access personal property—cutting down delays and paperwork errors that previously plagued the process.

Making Real Property Transfers More Practical

Historically, using an affidavit to transfer real estate after someone’s death was confusing and rarely done. Many people thought it wasn’t even allowed. While the law technically permitted it, the process lacked clarity and direction, making it difficult for heirs and county offices to follow through.

AB 2016 changes that by offering a structured, step-by-step approach for transferring real property—like a home—when the estate falls under the small estate limit. The new law requires a formal appraisal from a probate referee to confirm the value of the property, which must be under the $200,000 limit. It also includes clear instructions on notifying the Franchise Tax Board, as well as the required information like the property’s full legal description, address, and APN (Assessor’s Parcel Number).

Importantly, county recorders must now accept the affidavit as long as all elements are properly included, along with a copy of the death certificate. This marks a big shift in making real estate transfers via affidavit a realistic option for everyday families—something that was difficult or unreliable under previous law.

Clarifying Successor Rights and Simplifying the Statute

AB 2016 also brings more clarity to who qualifies as a rightful successor to a decedent’s estate. It aligns definitions across sections of the Probate Code, making it easier to identify eligible heirs whether they’re named in a will, a trust, or receiving assets under intestate succession (when someone dies without a will).

Third parties, like banks and title companies, are now protected when they rely in good faith on a properly completed affidavit. This added legal protection reduces the chances of institutions rejecting or delaying asset transfers due to fear of liability.

At the same time, the law repeals Probate Code § 13158, a little-used provision that previously allowed a declaration to collect certain financial instruments like debts or securities. These transfers are now fully covered under the new affidavit procedures, which helps streamline the overall legal framework and eliminate confusion about which method to use.

What This Means for Estate Planners, Executors, and Families

If you’re working with clients on estate planning, or handling the affairs of a loved one who passed away, AB 2016 changes the landscape in a meaningful way. It widens access to non-probate transfers, especially for families with modest estates that include both personal property and real estate.

For attorneys and financial professionals, it means revisiting estate plans to see who might now qualify for simplified procedures. For executors and heirs, it means learning the new requirements for affidavits and understanding the value limits that apply.

Let’s take a quick example. Suppose someone passes away in 2025 owning a $150,000 share of a home, a $45,000 bank account, and a $20,000 car. Before AB 2016, the total $215,000 value would have pushed the estate into probate. But if part of that bank account was held in joint tenancy—say $15,000—the estate would fall right at the $200,000 threshold, qualifying for simplified transfer. That could mean no probate court at all, just a few affidavits and recorded documents.

A Welcome Change in a Complicated System

In summary, starting January 1, 2025, Assembly Bill 2016 makes it easier to transfer property after death without going through probate—if the estate qualifies as “small.”

Key Changes:

• Estate Limit Increased: Estates up to $200,000 now qualify for simplified transfer (up from $184,500).
• Easier Paperwork: Affidavits are now standardized and can be signed electronically.
• Real Estate Transfers: Clearer steps now exist to transfer real property without court.
• Better Clarity: Defines who can inherit and removes outdated rules.

Assembly Bill 2016 offers much-needed relief in an area of law that affects nearly every Californian at some point in life. It brings clarity where there was confusion, flexibility where there were roadblocks, and simplicity where the process used to be daunting. By raising the small estate threshold, supporting digital tools, and laying out clear rules for real property, the bill puts efficient estate administration within reach of more families.

As always, it’s wise to speak with an estate planning attorney to ensure everything is done correctly and that your plan reflects these new rules. But the bottom line is clear: with AB 2016, California just made it easier to honor someone’s legacy without getting buried in red tape.