California AB 2016: The $750K Probate Shortcut That Title Insurers Won't Touch

California's New Probate Shortcut Lets You Transfer a Home Without Court — But Title Insurers Aren't Playing Along 

Claire Melehani

California has a probate problem. Full probate proceedings take 18 to 24 months, cost thousands of dollars in attorney fees and court costs, and tie up the family home while the court works through its backlog. For families whose primary wealth is in their house, the process is painful and expensive.

AB 2016, which took effect April 1, 2025, created a faster path. Families can now petition to transfer a deceased person's primary residence without full probate, as long as the home is worth less than $750,000. On paper, it is a significant reform. In practice, it is running into a wall: title insurance companies are quietly refusing to insure these transfers, which can make the home unsellable.

How the AB 2016 Probate Shortcut Works

AB 2016 amended California Probate Code section 13151 to raise the threshold for simplified real property transfers from $184,500 to $750,000, but with an important limitation: the property must be the decedent's primary residence. Investment properties, vacation homes, and rental properties do not qualify.

The process uses a Petition to Determine Succession to Real Property. This is a formal court petition, not a simple affidavit. It is faster and less expensive than full probate, but it still requires several steps:

• 40-day waiting period. At least 40 days must pass after the decedent's death before the petition can be filed. This waiting period is mandatory and cannot be waived.
• Probate referee appraisal. A court-appointed probate referee must officially appraise the home to confirm its value is under $750,000.
• All heirs must sign. Every legal heir must sign the petition.
• 15-day notice. Interested parties must receive notice at least 15 days before the court hearing.
• Court hearing and order. A judge reviews the petition and issues an order authorizing the transfer.

For personal property and non-real-property accounts, the small estate affidavit threshold is now $208,850, adjusted for inflation. That process is separate from the real property petition.

The Title Insurance Problem No One Warns You About

Here is where theory meets reality. Title insurance companies are the gatekeepers of real estate transactions. When you sell a home or refinance a mortgage, the buyer or lender requires title insurance, a policy guaranteeing the property's title is clear of defects, liens, and competing claims. Without title insurance, most transactions cannot close.

Many title insurers are treating AB 2016 small-estate transfers as high-risk. Some are quietly refusing to issue standard policies on properties transferred through this process. Others are willing to issue policies, but only after requiring additional affidavits, extended waiting periods, and sometimes bond requirements that add cost and delay.

For the family that used the shortcut to avoid probate, this creates a painful irony: the property transferred quickly and cheaply, but now they cannot sell it or refinance it without clearing hurdles that can take months and cost thousands.

Why Title Companies Are Wary

Title insurers price risk, and they see the streamlined petition process as introducing uncertainty that full probate does not. Their concerns center on three gaps:

• No structured creditor notice. Full probate gives creditors formal notice and a defined window to file claims. The petition process does not provide the same structured notification, meaning a creditor could surface after the transfer and assert a lien against the property.
• Heir identification risk. Probate courts independently verify who the rightful heirs are. The petition relies on the heirs' representations, which could be wrong, incomplete, or fraudulent.
• Less finality. A probate court order transferring property carries the weight of a judicial determination. The petition process, while still court-supervised, does not have the same procedural depth, making it theoretically easier to challenge.

These concerns are not unreasonable. But they create a practical problem the legislature did not fully anticipate.

What Families Should Do Before Filing

If you are considering the AB 2016 petition process to transfer a deceased family member's home, understand the downstream implications before you file.

Check with Title Companies First

Before filing the petition, contact major title insurers in your area and ask whether they will issue a standard policy on property transferred through this process. If they will not, or if they require additional steps, factor that into your decision about which path to take.

Consider Whether Full Probate Might Be Faster Overall

This sounds counterintuitive, but if the petition transfer goes smoothly and then you cannot sell the property for a year because no title company will insure it, you have not saved time. You have just shifted where the delay occurs. For families planning to sell the home, the total timeline matters more than the transfer timeline.

Talk to a Probate Attorney Before Choosing Your Path

The right approach depends on your specific situation: the property value, whether there are potential creditor claims, whether there are competing heirs, and what you plan to do with the property after transfer. A consultation that costs a few hundred dollars can prevent you from choosing a path that creates bigger problems later.

Better Alternatives That Avoid the Title Insurance Problem

Transfer-on-Death Deeds

If the property owner is still alive, a transfer-on-death (TOD) deed allows the property to pass directly to a named beneficiary at death without any probate or petition process. Title companies are generally more comfortable with TOD deeds because the transfer mechanism is established and recorded before death. This is often the simplest solution for a single property.

Revocable Living Trusts

For families with real property, a properly funded revocable living trust remains the most reliable way to avoid probate while maintaining full title insurability. The trust holds the property during the owner's lifetime, and at death the successor trustee transfers it without court involvement. Title companies have decades of experience insuring trust-transferred property, and the process is well understood.

Frequently Asked Questions About AB 2016



Can I transfer a house without probate in California?

Yes, under certain conditions. AB 2016, effective April 1, 2025, allows heirs to petition for transfer of a decedent's primary residence without full probate, as long as the home's gross value does not exceed $750,000. The process requires a court petition, a probate referee appraisal, signatures from all heirs, and a court hearing. Alternatively, transfer-on-death deeds and revocable living trusts can avoid probate entirely.

What is the property value limit for the AB 2016 probate shortcut?

The property must be the decedent's primary residence with a gross value of $750,000 or less, as determined by a probate referee. The previous threshold was $184,500. Investment properties, vacation homes, and rental properties do not qualify for this higher threshold.

Will title insurance companies insure a home transferred through AB 2016?

Some will and some will not. Many title insurers are treating AB 2016 transfers as high-risk due to concerns about creditor claims, heir identification, and the process's relative lack of finality compared to full probate. Before filing, contact title companies in your area to confirm they will issue a standard policy.

How long does the AB 2016 petition process take?

The process includes a mandatory 40-day waiting period after death before filing, followed by at least 15 days of notice to interested parties, and then a court hearing. Total timeline depends on court scheduling but is typically faster than full probate, which averages 18 to 24 months.

Is a revocable living trust still worth it if AB 2016 exists?

Yes. A properly funded revocable living trust avoids probate entirely, has no property value cap, works for all types of real property (not just primary residences), and is universally accepted by title insurance companies. For families with real estate, a trust remains the most reliable estate planning tool.

What is the small estate affidavit limit in California for 2026?

The small estate affidavit threshold for personal property (non-real-property assets like bank accounts, vehicles, and personal belongings) is $208,850 as of 2025, adjusted periodically for inflation. This is a separate process from the real property petition under AB 2016.

McLellan Law Group handles trust and probate disputes, trust administration issues, and real estate litigation throughout California. If you are navigating property transfer after a family member's death, contact us for a consultation.