Inheritance Laws in California (2025 Update): What Every Family Should Know

Inheritance Laws in California (2025 Update): What Every Family Should Know.

California inheritance law governs how property is distributed when someone passes away—whether or not they’ve created a valid will or trust. In April 2025, California implemented a major reform that now allows certain homes to be passed to heirs without full probate, offering relief to families burdened by court delays and legal costs.

But even with this change, navigating California’s inheritance rules still requires careful understanding. This guide outlines what happens when someone dies with or without a will, who inherits under intestate succession laws, how community property is handled, and what role California Probate Code and new legislation like AB 2016 play in the estate process.

A New Law in 2025: Assembly Bill 2016 and Primary Residence Transfers

Effective April 1, 2025, Assembly Bill 2016 (2024 Cal. Stat. ch. 127) expanded California’s small estate procedures by amending Probate Code §§ 13151–13154. For the first time, qualifying real property—specifically a decedent’s primary residence valued at $750,000 or less—can be transferred without going through full probate, as long as specific conditions are met.

Key Highlights of AB 2016:

• The property must have been the decedent’s primary residence

• It must be valued under $750,000, as determined by a probate referee or appraiser

• Only one property can be transferred this way

• Heirs must provide formal notice to all heirs and named beneficiaries

• The court must approve the simplified petition only if no objections are raised

The legal shortcut applies only to probate estates that meet the small estate definition under Probate Code § 13100 et seq. The goal of AB 2016 is to streamline property transfers in modest estates and relieve pressure on the courts—but it does not replace the need for proper estate planning.

📖 You can read the full text of AB 2016 here:
https://leginfo.legislature.ca.gov

What Is Probate and When Is It Required?

Probate is the court-supervised process for administering a deceased person’s estate. It involves validating a will (if there is one), paying outstanding debts, and distributing the remaining assets to heirs or beneficiaries. In California, probate is required for:

• Estates with probate assets exceeding $200,000 (as of 2025)

• Real property not held in a trust or passed by joint ownership or a beneficiary

• Situations where no valid estate plan exists

Even with a will, the court must oversee the process unless the estate qualifies under the small estate rules or was properly transferred into a revocable living trust. On average, probate in California takes 12 to 18 months, often involving court filings, legal fees, and public proceedings.

Inheriting Property Without Probate: What Qualifies?

As of 2025, California allows simplified transfer of estates if:

• The estate includes personal property under $200,000, under Probate Code § 13100

• The decedent’s primary residence is under $750,000 in value, per AB 2016

• At least 40 days have passed since death

• All heirs and beneficiaries are notified and no objections are filed

This process still requires a court petition (Form DE-310 or similar), but avoids the full formal probate case. These laws are especially beneficial in cases where the decedent died without a trust but owned a modest home.

📘 Official probate forms and procedures:
https://www.courts.ca.gov/forms.htm?filter=PR

Dying With a Will: The Testate Process

If a person dies with a valid will, the estate is considered testate. The executor named in the will must file the document with the court and begin the probate process. A valid California will should:

• Clearly name beneficiaries

• Appoint an executor or personal representative

• Designate guardians for any minor children

Even with a will, probate is typically required unless all property passes via joint tenancy, beneficiary designations, or is held in a trust.

Dying Without a Will: Intestate Succession in California

When a person dies without a valid will or trust, California’s intestate succession laws under Probate Code §§ 6400–6414 determine how the estate is divided. This law prioritizes spouses, children, parents, siblings, and other blood relatives in a defined hierarchy.

Common Scenarios:

• Spouse only (no children or parents): Entire estate goes to the spouse

• Spouse and one child: Spouse receives all community property and half of separate property; child receives other half

• Spouse and multiple children: Spouse receives all community property and one-third of separate property; children share two-thirds

• No spouse or children: Parents, then siblings, then extended family inherit

California also treats half-siblings the same as full siblings under Probate Code § 6406, meaning they inherit equal shares if applicable.

Community Property vs. Separate Property

As a community property state, California presumes that all assets acquired during marriage belong equally to both spouses. However, separate property—such as inheritances, gifts, or pre-marital property—is treated differently.

When a married person dies intestate:

• The surviving spouse gets 100% of community property

• The division of separate property depends on who else survives (children, parents, etc.)

Property ownership and how title is held (joint tenancy vs. separate title) significantly affect inheritance outcomes.

Special Heirs: Stepchildren, Foster Children, and Posthumous Children

Generally, stepchildren and foster children do not have inheritance rights unless:

• They were legally adopted, or

• The court finds compelling evidence the decedent would have adopted them if not for legal obstacles

Posthumous children—conceived before but born after the decedent’s death—can inherit if born within two years and if the decedent gave consent for the use of genetic material (Probate Code § 249.5).

The Slayer Rule: When an Heir Is Disqualified

Under California Probate Code § 254, any individual who intentionally and feloniously kills the decedent is barred from inheriting. Known as the Slayer Rule, this law applies even if the person is named in the will or is an otherwise legal heir.

Non-Probate Property: What Passes Outside the Court

Certain types of property are not subject to probate or intestate laws, and pass automatically to the named beneficiary or joint owner. These include:

• Revocable living trusts

• Joint tenancy property with right of survivorship

• Pay-on-death (POD) or transfer-on-death (TOD) accounts

• Life insurance or IRA/401(k) accounts with designated beneficiaries

These types of ownership are crucial tools in estate planning for avoiding court delays.

📖 Learn more from the California Estate Planning Guide:
https://www.courts.ca.gov/8865.htm

Avoiding Probate Entirely: Use a Living Trust

While the 2025 reforms offer relief for some, relying on “small estate” exemptions is risky. If property values rise or heirs dispute the transfer, probate will be triggered.

A revocable living trust remains the most effective way to:

• Transfer property privately and efficiently

• Avoid probate entirely

• Maintain control over how and when assets are distributed

Without a trust, families must rely on court oversight and risk delay or unintended outcomes.

Why Smart Estate Planning Still Matters in California

California’s inheritance laws are evolving—especially with the 2025 changes under Assembly Bill 2016—but full probate avoidance still requires strategic planning. The state’s intestate succession rules offer a structured fallback when there is no will, but this can still lead to confusion, conflict, or unintended distributions.

Whether you're a homeowner, parent, or beneficiary, it’s wise to create a valid will, consider setting up a trust, and ensure assets are titled properly. Estate planning doesn’t just protect wealth—it protects families.

California inheritance Law FAQ's

What is the new inheritance law in California in 2025?
Assembly Bill 2016 allows a decedent’s primary residence—valued under $750,000—to be transferred without full probate, using simplified procedures under California Probate Code §§ 13151–13154.

Who inherits when there is no will in California?
California Probate Code §§ 6400–6414 determine inheritance through intestate succession, with priority given to spouses, children, parents, and siblings.

Is probate always required in California?
Not always. Estates under $200,000 or involving real property under $750,000 (if the home was a primary residence) may qualify for simplified procedures. Trust-held or jointly owned assets can also bypass probate.

Can stepchildren inherit under California law?
Stepchildren are not automatically legal heirs but may inherit if adopted or if the court finds strong evidence the decedent intended to adopt them.

What is the Slayer Rule in California?
Under Probate Code § 254, any heir who feloniously and intentionally kills the decedent is disqualified from inheriting, even if named in a will.