The probate process was established in order to prove the validity of wills and other estate documents, as well as distribute a person’s assets after death if they do not have a trust. California’s Probate Code guides the process of determining whether or not a will is fit to be accepted as a true last testament and valid public document. But not everything has to be settled through probate. There are, in fact, assets that can avoid the process entirely.
Types of Probate-Free Assets
In California, six primary asset categories generally bypass probate: accounts with named beneficiaries, joint tenancies with rights of survivorship, assets in a living trust, those intended for a trust (via Heggstad Petition), estates valued under $208,850, and primary residences worth $750,000 or less.
Each of them has other legal measures that help define the next steps outside of the probate process.
1. Small Estates Under the New 2025 Limit
The most significant change for 2025 involves the “Small Estate” threshold. While older articles may cite a limit of $166,250, this number is no longer valid.
California adjusts this threshold for inflation every three years. For deaths occurring on or after April 1, 2025, the small estate threshold has increased to $208,850. If the total value of the decedent’s estate falls below this amount, heirs can often utilize a “Small Estate Affidavit” to collect assets without ever stepping foot in a probate courtroom.
2. Primary Residences (Assembly Bill 2016)
Previously, real estate almost always triggered full probate unless it was of very little value—often under $60,000. However, a major change in California law (Assembly Bill 2016) has created a massive expansion for homeowners.
As of April 1, 2025, if a decedent’s primary residence is valued at $750,000 or less, heirs may use a simplified court petition known as a “Petition to Determine Succession to Real Property”. While this still involves a court filing, it avoids the full, multi-year probate process, saving families significant time and money.
3. Accounts with a Named Beneficiary
Any accounts that have a named beneficiary are exempt from probate courts. These assets are subject to “Pay-on-Death” (POD) or “Transfer-on-Death” (TOD) agreements.
- Ease of Access: To collect these funds, a beneficiary typically only needs to provide the death certificate and personal identification to the financial institution.
- Common Examples: This applies to life insurance policies, 401(k)s, IRAs, and specific bank accounts.
4. Assets Held in Joint Tenancy
When assets are held in “Joint Tenancy with Right of Survivorship,” they pass automatically to the surviving owner. This is a common way for spouses to hold title to property or bank accounts.
A Note of Caution: The only exception to the right of survivorship is if it can be proven that the joint ownership was added strictly for convenience (such as an elderly parent adding a child to an account just to help pay bills). In these cases, Gokal Law Group fights to ensure the intent of the decedent is honored and that beneficiaries are not wrongly excluded.
5. Assets Held in a Living Trust
A Living Trust remains the gold standard for avoiding probate for estates of any size. When you establish a trust, the assets are distributed according to the specific terms you have set, managed by a trustee rather than a judge.
However, even with a trust, disputes can arise. The Probate Court may still be called upon to:
- Determine the validity of the trust.
- Clarify ambiguous provisions.
- Address claims of trustee misconduct or breach of fiduciary duty.
6. Assets Intended to be Held in Trust (Heggstad Petitions)
Sometimes, an individual intends for an asset to be in their trust but fails to update the title before they pass away. In California, under Probate Code 850, we can file what is known as a “Heggstad Petition”.
If we can prove the asset was meant to be in the trust but was left out by mistake, the court can “grandfather” it in. While this does involve a court process, it is significantly faster and less expensive than a full probate administration.
Contact Gokal Law
Do you believe the probate process is being mishandled? We’ve got your back. Contact Gokal, and our team will diligently investigate your claims, interview witnesses, and give you the support you need to win your case. The sooner you contact us, the more effective we are at getting you the justice you deserve.
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Each attorney has a specific practice area for which they are tried, tested, and battle-ready. Each has vast years of experience in their practice area, providing them the knowledge, skills, and vision to fight and win. Learn more about Gokal Law Group.