AB 2016 and Your Probate Real Estate Business: Why You Should Keep Prospecting

We’ve heard from some of you who are worried about how California’s Assembly Bill 2016 (AB 2016), effective April 1, 2025, might impact your probate real estate business. A few of you are even considering pulling back from probate leads due to uncertainty about the new law.

We understand these concerns, but let’s take a closer look at AB 2016 and why it won’t derail your business—unless you let it.

The probate market remains full of opportunity, and your ability to connect with motivated sellers is as strong as ever.

Understanding AB 2016: What’s Changing?

AB 2016, signed into law in 2024, amends California’s Probate Code to simplify the transfer of small estates, particularly for low- and moderate-income households. Here are the key changes, effective for decedents passing on or after April 1, 2025:

• Higher Threshold for Primary Residences: The bill raises the value limit for a decedent’s primary residence to qualify for a simplified probate process, known as a Petition to Determine Succession to Real Property, from $184,500 to $750,000. This allows successors to transfer the home through a streamlined court process rather than full probate.

• Exclusion from Personal Property Threshold: The value of the primary residence (up to $750,000) is now excluded when calculating the $184,500 threshold for personal property transfers via a Small Estate Affidavit. This means more estates can use the affidavit to transfer non-real estate assets without court involvement, even if they include a high-value home.

• Continued Use of Small Estate Affidavit: For personal property (excluding real estate), the threshold remains $184,500, allowing successors to transfer assets like bank accounts or vehicles without probate, as long as the estate meets eligibility criteria.

• Court Oversight for Real Property: Estates with a primary residence valued up to $750,000 using the Petition to Determine Succession still require court filings, notices to all heirs and beneficiaries, and potential hearings. Full probate may be needed if disputes arise or heirs are uncooperative.

Some agents fear these changes will reduce probate filings, shrinking the pool of leads. However, the data and the bill’s structure suggest otherwise.

Why AB 2016 Won’t Hurt Your Business

You might be wondering if AB 2016’s simplified procedures mean fewer probate cases and fewer properties to sell. Here’s why that’s not the case—and why your probate real estate business remains a smart focus:

Probate Filings Are Holding Steady

Despite AB 2016’s changes, probate activity hasn’t slowed. In Los Angeles County alone, there has been no decline in probate filings since April 1, 2025. This means estates are still entering probate at the same rate, creating a consistent supply of leads. Many estates don’t qualify for simplified procedures due to complex assets, multiple heirs, or disputes, ensuring that probate properties continue to hit the market.

Most Probate Estates Still Involve Real Property

AB 2016 primarily affects primary residences valued up to $750,000, but many probate estates include other real property (e.g., rental properties or vacant land) or exceed the simplified thresholds. These cases often require court oversight, and personal representatives (PRs) still need to sell properties to settle estates. Even estates using the Petition to Determine Succession involve court processes that motivate PRs to liquidate assets quickly, keeping your pipeline of motivated sellers active.

Simplified Processes Don’t Eliminate Sales

While AB 2016 makes it easier to transfer some homes without full probate, PRs and heirs still want to sell these properties to distribute proceeds or move on. The streamlined process doesn’t change their motivation—it just reduces legal hurdles, potentially speeding up the timeline for listing the property. As an agent, you’re still the critical link to help PRs navigate the sale, especially in a market where timing is everything.

Your Expertise Is Still in Demand

Probate sales require sensitivity, knowledge of the probate process, and the ability to work with multiple stakeholders. AB 2016 doesn’t change the need for skilled agents to guide PRs through complex decisions, market properties effectively, and negotiate deals. Your role as a trusted advisor remains invaluable, whether the estate uses a Small Estate Affidavit or a court petition.

The Real Challenge: The Broader Market, Not AB 2016

The bigger hurdle for your business isn’t AB 2016—it’s the current real estate market. With mortgage rates above 7%, homeowners with 3% mortgages are reluctant to sell and buy at higher rates, slowing traditional listings. This makes it harder to find motivated sellers outside of probate. Probate sellers, however, are uniquely motivated for reasons unrelated to market conditions:

• Urgency to Settle Estates: PRs want to resolve the estate quickly to fulfill legal duties and reduce stress, often prioritizing a fast sale over holding out for top dollar.

• No Mortgage Rate Concerns: Unlike traditional sellers, PRs aren’t worried about swapping a low-rate mortgage for a high-rate one. Their focus is on liquidating assets, not buying a new home.

• Financial Incentives: Many PRs are heirs who will inherit a lump sum from the estate. Selling the property sooner allows them to access their inheritance faster, making them eager to list.

These motivations make probate sellers some of the best prospects in today’s market. By focusing on probate leads, you’re targeting clients who are ready to act, giving you an edge over agents chasing hesitant sellers.

Don’t Let Fear Stop You

AB 2016’s changes are not a threat to your probate real estate business—they’re a minor adjustment in a niche that’s still thriving. The real risk is letting uncertainty or fear pull you away from a proven strategy. Probate filings remain steady, PRs are motivated, and your skills are in demand. If you step back now, you’re leaving opportunities on the table for other agents who stay the course.

Here’s how you can keep your business strong:

• Stay Proactive: Keep working your probate leads. Reach out to PRs with empathy, offering your expertise to guide them through the sale process.

• Leverage Your Knowledge: Use your understanding of probate to build trust with PRs. Explain how you can help them sell quickly and efficiently, even under AB 2016’s rules.

• Focus on the Numbers: Prospecting is about consistency. The more leads you contact, the more likely you are to land listings, especially in a market where probate sellers stand out.

• Adapt to the Market: In a slow market, probate’s motivated sellers are your lifeline. Prioritize these leads to keep your pipeline active.

Your Call to Action: Keep Prospecting with Confidence

AB 2016 doesn’t change the fundamentals of probate real estate.

Probate filings are steady, sellers are motivated, and your ability to connect with PRs is what drives your success. Don’t let misconceptions about the bill—or a tough market—hold you back. Log in to www.probatedata.com, review your latest leads, and reach out to PRs who need your help. By staying focused on probate, you’re positioning yourself to thrive while others struggle. Let’s make 2025 a year of growth and success for your business!