Estate planning is about more than just who gets what. It’s about protecting your loved ones, avoiding unnecessary costs, taxes, conflict, and making sure your wishes are honored. Whether you own a home, have children, want to age in comfort and dignity, or support a cause you care about, a thoughtful estate plan brings clarity and peace of mind.
That’s why California’s new Assembly Bill 2016 (AB 2016), which went into effect on April 1st 2025, is getting attention. It introduces a higher probate threshold for “small estates” that include real property used as a primary residence. The law is designed to address the rising costs of real estate in California.
But for most people living in Santa Barbara, this change will have no impact. Santa Barbara’s real estate market is one of the most expensive in California. If you are fortunate enough to own your own home, its value is likely to exceed the new $750,000 threshold.
Moreover, the new statutory form will does not offer the level of protection or customization needed for most Santa Barbara residents.
What AB 2016 Does
1. A Higher Probate Threshold — With New Challenges
Before AB 2016, if a person died with an estate worth more than $184,500, their estate must go through probate—a public, time-consuming, and extremely costly court process.
Starting April 1, 2025, the threshold for avoiding full probate administration will increase to $750,000—but (and this is critical) the exclusion only applies to the decedent’s primary residence. In other words, the “small estates” exclusion applies only to real property that served as the primary residence of the deceased person at the time of their death. Therefore, if the estate includes a mixture of real property and cash assets and/or stock, only the primary residence will qualify for a “small estates” probate procedure under AB 2016 – and only if that residence is worth less than $750,000, a rarity in Santa Barbara. Any cash, stock, or other assets will still need to be probated if their total value exceeds $184,500.
That may be good news for some, but it comes with a catch. The new law requires notice to be given to every intestate heir, beneficiary and devisee. This is certain to increase transparency, but it also increases the risk of legal challenges by heirs and beneficiaries who may contest the disposition of the decedent’s estate.
In other words, avoiding probate doesn’t necessarily mean avoiding complications — especially if your will or trust isn’t clear or up to date.
2. A New Fill-in-the-Blank Will Form
AB 2016 creates a simplified statutory will form meant to help individuals with very limited assets put their wishes in writing. It’s designed for people who:
While this may help Californians who would otherwise die without a will, it fails to provide the right level of protection or customization for most Santa Barbara residents who are property owners.
What AB 2016 Doesn’t Do
While the convenience of AB 2016 is appealing, most Santa Barbara residents are unlikely to reap much benefit from the new law. A statutory will under AB 2016 is a one-size-fits-all document designed for simplicity, not customization. It lacks flexibility to address complex family dynamics, blended families, significant real estate holdings, or business interests—common issues in Santa Barbara—which often leads to ambiguity, beneficiary disputes, and increased risk of costly, time-consuming probate litigation.
1. Complex Family Dynamics
Blended families, long-term partnerships without marriage, estranged relatives, or charitable interests require nuanced estate planning that a basic will form cannot accommodate.
2. Business Ownership and Professional Assets
Santa Barbara is home to a vibrant community of entrepreneurs, professionals, and investors. Whether you own a business, hold intellectual property, or have significant investment assets, your estate plan must address tax implications, succession planning, and asset protection.
3. Incapacity Planning
AB 2016 does not provide for durable powers of attorney, advanced healthcare directives, or trust-based planning — all essential tools for protecting your interests in the event of incapacity. Without these, your family may need to seek a conservatorship through the court, which is another costly, time-consuming, and emotionally draining process.
The Simplified Probate Process Under AB 2016
Say you own your primary residence, valued at $700,000, and you hold cash and other assets worth a total of $180,000. Your estate qualifies for the simplified probate process under AB 2016. If you die without an estate plan in place, this is what you can expect:
1. 40 Day Waiting Period
California law requires petitioners to wait until 40 days after death to file a probate petition. This provides time needed to gather and organize the decedent’s important documents and locate any will that may have been left behind.
2. Verify the Estate’s Eligibility under AB 2016
Additionally, the 40-day waiting period allows time to appraise the estate at the date of death and verify that it is under the $750,000 residential asset threshold and the $184,500 threshold for remaining assets.
3. Draft the Petition
For estates that include a primary residence valued at less than $750,000, a Petition to Determine Succession to Primary Residence must be prepared. The petition provides a range of information including a property description, inventory and appraisal, the decedent’s name and date of death, and the identity of all potential heirs, beneficiaries, or people named in the decedent’s will.
If the estate also includes other assets worth less than $184,500, a Small Estates Affidavit (or Affidavit for Collection of Personal Property) must be completed as well.
4. Notification to All Interested Parties
As noted above, AB 2016 has expanded notification requirements. Notice of the petition must be delivered to every interested person. That means, if there is a will, you must give notice to each and every person named in the will. If there is no will, all the potential heirs must be notified. Often, locating such individuals is a challenge. The notices must be served at least 15 days before the hearing on the petition.
5. Submit the Petition to Court
The petition must be filed in the county where the deceased person resided.
6. Appear at the Hearing on the Petition
Once the petition is submitted, a hearing will be scheduled for the court to review the petition and receive any objections. If there are no objections and the court confirms the values are within AB 2016’s thresholds, the judge will issue an order determining who will inherit the decedent’s property.
7. Recordation
The court order is then recorded in the office of the County Clerk.
In the best case scenario, this process is streamlined and inexpensive. You still have to pay administrative fees to the court (filing fees).
The Bottom Line: You Still Need a Lawyer
AB 2016 is not a substitute for comprehensive estate planning. For most Santa Barbara residents, especially those with real estate, blended families, or long-term goals for their wealth, relying on a statutory will could lead to unintended outcomes, probate delays, or even litigation among heirs.
At Fauver, Large, Archbald & Spray LLP, our experienced estate planning attorneys are here to guide you through the process of safeguarding your assets and ensuring your wishes are honored, during your lifetime and after.
Don’t leave your legacy to a one-size-fits-all form. Contact us today to schedule a consultation and develop a personalized estate plan that reflects your goals, protects your loved ones, and gives you peace of mind.
