Key Takeaways

• When a California homeowner dies without a trust, the home generally goes through probate under California Probate Code section 7000 and following sections — unless it qualifies for a small-estate procedure or passes outside probate by joint tenancy, beneficiary deed, or other operation of law.
• As of April 1, 2025, AB 2016 raised California’s small-estate thresholds: families can now transfer a primary residence valued up to $750,000 through a streamlined Petition to Determine Succession to Real Property under Probate Code sections 13150 through 13157.
• A court-appointed probate referee values estate real property under Probate Code sections 8900 through 8910 using fair market value as of the date of death.
• Full California probate typically takes between eight and eighteen months; sales under the Independent Administration of Estates Act (IAEA) can move significantly faster than court-confirmation sales.
• An experienced California real estate or probate attorney can substantially shorten the process by anticipating notice issues, leveraging IAEA authority, and coordinating the sale or transfer with the larger estate administration.

What Happens to Real Estate During Probate in California?

When a California homeowner dies, the house does not simply pass to the family. Unless the property was held in a trust, owned in joint tenancy with right of survivorship, or transferred through a properly executed transfer-on-death deed, the home becomes part of the decedent’s probate estate — and that means court supervision, statutory notices, and timelines that can feel glacial when the family just wants to sell or move on.

This guide explains what actually happens to California real estate during probate, what the recent AB 2016 changes mean for middle-class families, and where an experienced attorney can shorten the process.

Just lost a parent and inherited a California home? You don’t have to figure this out alone.

Bay Legal, PC guides California families through probate and inherited-property sales. Call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

What happens when a California homeowner dies without a trust

If the homeowner died with a will (testate) or without one (intestate), and the home was titled in their name alone or as tenants in common, the property generally goes through probate. California probate is governed by Probate Code section 7000 and the chapters that follow. The basic flow:

• A petition for probate is filed in the superior court of the county where the decedent lived.
• The court appoints a personal representative — an executor named in the will, or an administrator under intestacy rules.
• Letters Testamentary or Letters of Administration issue, giving the representative legal authority to act.
• Creditors are noticed (Probate Code section 9050 and following sections) and have four months from issuance of Letters to file claims.
• A court-appointed probate referee inventories and values estate property, including real estate.
• The personal representative manages, sells, or distributes the property under court supervision (or under the streamlined IAEA procedure, discussed below).
• After debts, taxes, and expenses, the court orders final distribution and closes the estate.

The small-estate alternatives (and AB 2016’s big 2025 change)

California has long offered streamlined procedures for smaller estates that avoid full probate. AB 2016 (Chapter 25, Statutes of 2024), operative April 1, 2025, substantially raised the dollar thresholds:

• The personal-property small-estate affidavit under Probate Code section 13100 now applies to estates with personal property of $208,850 or less.
• The Petition to Determine Succession to Real Property under Probate Code sections 13150 through 13157 now applies to a decedent’s primary residence valued at $750,000 or less.
• The small-value real-property affidavit under Probate Code section 13200 now applies up to $69,625.

These thresholds matter. Before AB 2016, families with a modestly valued home were often forced into full probate. The current section 13150 procedure lets qualifying families transfer the primary residence through a court petition that runs faster and at substantially lower cost than full probate.

Decedent’s date of death matters. The new thresholds apply to estates of decedents who died on or after April 1, 2025. For decedents who died before that date, the older (lower) thresholds apply. Confirm the date of death first; it controls which procedure is available.

Can heirs sell a house while probate is still open?

Yes. California offers two paths:

Sales under the Independent Administration of Estates Act (IAEA)

Under Probate Code sections 10400 through 10592, a personal representative granted full IAEA authority can sell estate real property without prior court approval, after giving a Notice of Proposed Action (Probate Code section 10580) to interested parties. If no objection is filed within fifteen days, the sale closes. IAEA sales typically move at market speed — comparable to a regular residential sale.

Court-confirmation sales

Without IAEA authority, or when an objection is filed, the personal representative must obtain court confirmation. Probate Code section 10311 governs the overbid procedure: at the confirmation hearing, an opening overbid must exceed the negotiated sale price by ten percent of the first $10,000 plus five percent of the excess. Court-confirmation sales can take significantly longer and frequently produce higher final prices when multiple bidders appear at the hearing.

Which path is right depends on the will language, the family dynamics, the marketability of the property, and the goals of the heirs. A probate attorney can help frame this early so you are not forced into the slower option by default.

How the probate referee values your inherited home

California requires a probate referee — appointed by the court under Probate Code sections 8900 through 8910 — to inventory and value all non-cash estate property, including real estate. The referee uses fair market value as of the date of death, drawing on:

• Comparable sales in the immediate market area.
• Physical inspection of the property where practical.
• Information provided by the personal representative.
• Independent valuation tools and the referee’s own market expertise.

The referee fee is set by statute at one-tenth of one percent of the value of the property appraised, with a minimum of $75 and a maximum of $10,000. The valuation also matters for stepped-up basis purposes (IRC section 1014), so it is worth getting it right the first time.

Worried the probate referee’s valuation will hurt your tax basis?

Bay Legal, PC coordinates probate, real estate, and tax considerations together. Call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

How long California probate actually takes

The honest answer: usually eight to eighteen months, sometimes longer. The main drivers are:

• Statutory creditor-notice periods (four months minimum from Letters).
• Whether the estate has full IAEA authority or requires court confirmation.
• Complexity of the assets (a single home is simpler than a portfolio).
• Family dynamics and the presence of a will contest.
• Court calendars in the county of administration — some counties move significantly faster than others.
• Tax filings (the estate may need an EIN, a final 1040, and a Form 1041).
• Real-property valuation disputes or environmental issues that affect sale.

Proposition 19 and inherited California real estate

Proposition 19 (codified at Revenue and Taxation Code sections 63.2 and 69.6, enacted by SB 539 in 2021) substantially narrowed the parent-child exclusion from property-tax reassessment. To preserve your parent’s lower assessed value on a family home, the heir generally must move into the home as their primary residence within one year of transfer and file for the Homeowners’ Exemption. Even then, the excluded amount is capped: the family home’s fair market value at transfer cannot exceed the factored base-year value plus an inflation-adjusted cap. The Board of Equalization sets the cap every two years. For transfers between February 16, 2025 and February 15, 2027, the cap is $1,044,586.

In high-value California markets, that cap means many inherited homes will be partially reassessed even when an heir moves in. The math gets complicated fast, and the rules continue to evolve. There is currently a qualified initiative seeking to repeal Proposition 19 — though as of this writing, it has not made the ballot.

These figures are illustrative — actual property tax outcomes depend on your specific facts, the property’s factored base year value, the timing of the transfer, and how the heir uses the property. Talk to a California real estate attorney and a tax professional before acting on any inherited-property strategy.

How a real estate attorney can speed up the process

Probate is partly a courtroom process and partly an administrative one. Attorneys who handle California probate routinely tend to know:

• Which courts process petitions fastest and how to draft to avoid rejection.
• How to secure full IAEA authority on the first petition rather than the second.
• When the section 13150 petition is faster than full probate (and when it is not).
• How to coordinate the sale of estate real property with creditor claims, tax issues, and beneficiary distributions.
• How to handle property condition issues — unpermitted work, deferred maintenance, title clouds — that surface during the sale.
• How to advise on Proposition 19 mechanics before a transfer that triggers reassessment.

In our experience, families who consult an attorney early often save months compared to those who try to navigate the system alone and end up correcting petitions, restarting notice periods, and missing filing deadlines.

Inherited a California home and not sure where to start?

Bay Legal, PC walks California families through probate from filing to final distribution. Call (650) 668-8000 or schedule a consultation at baylegal.com/contact.

Frequently Asked Questions

Does every California home have to go through probate?

No. Homes held in a living trust, in joint tenancy with right of survivorship, with a beneficiary under a properly executed Revocable Transfer on Death Deed (Probate Code sections 5600 through 5698), or owned as community property with right of survivorship generally pass outside probate. Many other homes qualify for streamlined small-estate procedures under Probate Code sections 13100, 13150, or 13200.

Can I refuse my inheritance to avoid the property?

Yes. California recognizes qualified disclaimers under Probate Code section 275 and the federal rules at IRC section 2518. A timely, written disclaimer can pass the property to the next-in-line beneficiary. Talk to an attorney before disclaiming — there are tax and timing rules that matter.

Will I get the stepped-up tax basis on an inherited California home?

Generally yes, under IRC section 1014. The basis adjusts to the property’s fair market value at the date of the decedent’s death, which can substantially reduce capital gains tax on a later sale. This is independent of California’s Proposition 19 property-tax-reassessment rules; the two apply to different taxes.

What if there’s a mortgage on the inherited house?

The mortgage generally survives the death of the borrower. Garn-St. Germain Act (12 U.S.C. section 1701j-3) protects most family inheritors from a due-on-sale acceleration, and California’s Homeowner Bill of Rights includes successor-in-interest protections at Civil Code section 2920.7. A probate attorney can help coordinate with the servicer.

How much does California probate cost?

Statutory attorney and personal representative fees are calculated on the gross value of the estate (Probate Code sections 10810 and 10800). For a $1 million estate, the statutory fee for the attorney alone is approximately $23,000. Court costs, the probate referee fee, publication, and bond premiums add to the total. For many families, an early conversation about fee structure and whether the section 13150 procedure may apply is worth its weight.

Disclaimer

This article is for general informational purposes only and does not constitute legal, tax, or financial advice. Reading this article and contacting Bay Legal, PC does not create an attorney-client relationship. The information here is specific to California law, which changes over time, and your situation may involve facts that change the analysis. If you have a real estate question that matters to you, speak with a licensed California attorney about your specific circumstances.