According to the California Association of Realtors (CAR), the median price of a single family detached home in San Diego County has gone from about $180,000 in 1990 to a million dollars. Still, there are at least 38 other California counties where the median home price according to CAR is under $750,000.
It is in those 38 counties where changes to the Probate Code are going to have the biggest impact next year by giving homeowners a previously unavailable mechanism to avoid probate--a Petition to Determine Succession to Real Property. On April 1, 2025, we will see a broad expansion of eligibility for successors-in-interest to avoid probate by filing a petition to establish "succession" to real property.
Understanding the Current Succession Laws
Current law limits the eligibility of a Petition to Determine Succession to Real Property to cases in which the decedent’s gross value of real and personal property subject to probate do not exceed $166,250 if the decedent died before April 1, 2022, and $184,500 if the decedent died after April 1, 2022.
Anyone who has been paying attention to the real estate market over the past decade-plus will note that these thresholds would limit the usefulness of succession petitions to primarily successors-in-interest to vacant lots and fractional ownership interests, while the successors-in-interest of the vast majority of homeowners who do not hold property with a right of survivorship, a transfer-on-death designation, or in a trust would face the unfortunate result of an expensive and time consuming probate process.
Key Changes Coming on April 1, 2025
Under the updated law, we now look at the gross value of the real property that was the decedent’s primary residence. A successor in interest can file a petition if that number is $166,250 if the decedent died before April 1, 2022, $184,500 if the decedent died after April 1, 2022 but before April 1, 2025, and, if the decedent dies after April 1, 2025, that gross value threshold skyrockets to $750,000. By allowing successors-in-interest of primary residences worth $750,000 or be able to access these orders, millions of Californians will potentially avoid probate on the family home through increased access to Petition to Determine Succession to Real Property.
How to Identify Eligibility
If you have lost a loved one who owned real estate in California, call Broaden Law LLP at (619) 567-6845 to consult with an experienced probate attorney who can help.