California Probate Overview
Certified real estate appraisals that protect your family's interest during the Probate process. USPAP compliant valuations for Probate Court, estate distribution and tax reporting
What is the Court Probate Process
Probate is the orderly, court-supervised method of distributing the assets of a deceased person. When a property owner passes away, the estate may go through probate — especially when there is NO WILL, to ensure assets are identified, valued and distributed according to California law.
Living Trust vs. Probate
If you own real property in California, your family will face the probate process after you pass — even if you leave a will. Probate is court-supervised, time-consuming, and expensive. A Living Trust changes that. When your home is held in a trust, ownership transfers directly to your designated successor without court involvement, keeping the process private, faster, and far less costly. Even with a Living Trust, a certified appraisal is still required for Trust inventory Equitable distribution among beneficiaries Establishing the stepped-up basis for tax purposes. We provide USPAP-compliant valuations for both probate court proceedings and living trust administration throughout Orange County, CA.
Why a Trust Appraisal Matters
A Trust appraisal should be updated whenever major life or financial changes occur. Keeping your valuation current ensures accurate records, equitable distribution, and proper planning for beneficiaries.
Common reasons to update your trust appraisal includes:
- •Substantial change in property value
- •Death of an heir or beneficiary
- •Birth or adoption of a new beneficiary
- •Marriage or divorce
- •Change in trustees or personal representatives
- •Acquisition or sale of a significant asset
- •Children reaching age 18
- •New state or tax laws
California Probate Overview
Probate is the court-supervised legal process used to settle a deceased person's estate. The court identifies and gathers assets, pays debts and taxes, and distributes the remaining property to heirs or beneficiaries.
Testate
The decedent left a valid Will
~0–3+ months
Intestate
The decedent died without a Will
~12+ months
Even with a Will, complications can arise that require guidance from an attorney who specializes in Probate & Trust administration.
Important to Know:
- •The Probate Referee Appraiser only performs a drive-by to determine current market value. They do not inspect the interior, assess condition, or account for upgrades or deferred maintenance.
- •Regardless of the property's condition or improvements, hiring an independent, certified appraiser ensures the property is valued accurately and completely.
- •You may submit your independent appraisal to the court when filing the Petition in Probate Court, for the court's consideration.
The California '90% Rule' — Why Your Independent Appraisal Matters
Under California Probate Code, an estate may sell real property without a court confirmation hearing. if the sale price is at least 90% of the court-appraised value — the figure established by the Probate Referee. However, if you submit an independent appraisal to the court and it is accepted, that value may become the baseline for the 90% calculation. A higher independent valuation raises the minimum acceptable sale price, protecting the estate from an undervalued sale. A lower one — supported by documented condition issues or market evidence — can give the estate more flexibility. Either way, the independent appraisal you submit can directly shift what the estate is legally permitted to accept, making accuracy and USPAP compliance critical.
California Probate Small Estate Thresholds
Effective April 1, 2025 – March 31, 2028
California updates its probate "small estate" limits every three years under Probate Code §890. These values apply based on the date of death, not the filing date.
Small Estate — Personal Property Affidavit (§13100)
$208,850
Affidavit for Real Property of Small Value (§13200)
$69,625
Compensation Owed to Decedent (§13050(c))
$20,875
Spousal Property Collection Affidavit (§§13600–13601)
$20,875
Small Estate Set Aside (§§6600–6615)
$107,900
Major Change — AB 2016
Primary Residence Succession Petition
Major Change : AB 2016 Primary Residence Succession Petition (§§13150–13157) up to $750,000. This increase allows many Orange Co, CA homes and condos to BYPASS FULL Probate, when the decedent owned the residence individually, and it qualifies as their Primary Residence.
Proposition 13 & Property Tax Implications
California's Proposition 13 (1978) limits property tax increases to 2% per year based on the assessed value at the time of purchase. When a property transfers through an estate, trust, or probate, the assessed value is typically reassessed to current market value, which can significantly increase property taxes for the new owner.
How Property Tax Assessments Work:
The Assessor's Office determines property taxes through an ad valorem (value-based) assessment. Rather than inspecting each property individually, the Assessor uses "Mass Assessments" based on all sales transactions and market activity recorded through March 31 of each year. The Assessor's Office is triggered when the property title changes hands — not by the date of death. This means your assessed value may not reflect your property's actual condition or unique characteristics.
Parent–Child Exclusion (Prop 19)
As of February 16, 2021, Prop 19 limits the parent-to-child transfer exclusion. The inherited home must become the child's primary residence within one year to qualify for a partial exclusion.
Prop 13 & Title Transfer
Reassessment is triggered when the property title transfers to a new owner — not at the date of death. At that point, the county assessor reassesses to current fair market value, making an accurate appraisal critical.
Stepped-Up Basis (IRS Capital Gains)
When a property owner dies, the IRS resets the cost basis to the fair market value at the date of death. Neither the IRS nor the Assessor's Office receives the appraisal at that time — it simply needs to exist as documentation. When the property is eventually sold, the taxable gain is calculated from that DOD value forward, not from the original purchase price. Without a certified DOD appraisal on file, heirs may face a much larger capital gains bill at sale.
Why an Appraisal Matters
An independent certified appraisal establishes the fair market value used for reassessment. An accurate appraisal protects heirs from overpaying property taxes and satisfies both the IRS and the County Assessor.
Laguna Woods Village & Leisure World Seal Beach:
Co-op shares are treated differently under Prop 13 and Prop 19, and reassessment rules and exclusion eligibility may vary. Laguna Woods Village and Leisure World Seal Beach are the only two Co-op developments in Orange County. Sue Sauer has specialized expertise in Co-op valuations and can help ensure your appraisal accurately reflects the property type for both probate and tax purposes.