AB 2016 and Your Escondido Primary Residence

I recently had a client, Emily, come to me in a state of near panic. Her mother had passed away owning a home in Escondido worth $850,000. Emily had always intended to inherit the home, but because of a miscommunication and delays in initiating probate, over a year had passed since her mother’s death. Initially, she feared she’d lose any property tax benefits associated with Proposition 13. The potential cost of reassessment, and the subsequent spike in her annual property taxes, was overwhelming.

Fortunately, thanks to AB 2016, we were able to utilize the “Primary Residence” petition to navigate this situation. This law, enacted in 2022, created a streamlined probate process for smaller estates, specifically focusing on the transfer of a primary residence. It’s a game-changer for many families in North County, and it’s something I urge all my clients to consider when discussing estate planning and potential probate issues.

What Does AB 2016 Actually Do?

Before AB 2016, even seemingly straightforward estate transfers could get bogged down in the traditional probate court system. This could take months, even years, costing families both time and substantial legal fees. AB 2016 offers a significantly quicker and less expensive path – but with specific requirements. The law allows a surviving spouse, registered domestic partner, or child to file a petition to transfer ownership of their deceased parent’s primary residence directly with the court, bypassing the full probate process.

What are the Key Requirements for AB 2016?

• Primary Residence: The property MUST have been the deceased’s principal place of abode at the time of death.
• Value Cap: As of 2026, the home’s value cannot exceed $750,000. This cap adjusts annually for inflation.
• Time Limit: The petition must be filed within a specific timeframe, generally within 180 days of the date of death.
• Proper Documentation: Accurate and complete documentation is crucial, including the death certificate, a preliminary change of ownership report, and proof of relationship.

How Does This Relate to Proposition 19?

It’s important to understand how AB 2016 interacts with Proposition 19. Proposition 19 allows for the transfer of a parent’s low property tax base to their children, but only if the child occupies the home as their primary residence within one year of the parent’s death. Critically, for 2026, the tax-free ‘basis boost’ is capped at $1,044,586 over the original taxable value; any value exceeding this adjusted cap results in a partial reassessment even if the child moves in. AB 2016 simply offers a faster way to get the ownership transferred so that the child can begin the one-year clock required by Proposition 19.

Why a CPA-Attorney is Crucial for AB 2016

After 35 years in practice, both as an Estate Planning Attorney and a Certified Public Accountant, I’ve seen firsthand how crucial proper valuation is. The $750,000 cap on AB 2016 eligibility is a key consideration. But even if the home falls under that threshold, understanding the step-up in basis at the time of death can significantly impact capital gains tax liabilities when the property is eventually sold. A professional appraisal, combined with a thorough understanding of current tax laws, is essential. With Emily, we were able to confirm the value fell within the cap and strategically plan for the future capital gains implications. A dual-credentialed professional brings a level of financial foresight that a standard attorney often lacks.

Finally, remember that for deaths occurring on or after April 1, 2025, assets exceeding $208,850 generally trigger full probate. However, per Probate Code § 13050, this calculation MUST exclude all California-registered vehicles (regardless of value), boats, and up to $20,875 in unpaid salary. Furthermore, AB 2016 now allows a simplified ‘Primary Residence’ petition for homes valued up to $750,000, significantly expanding probate shortcuts.

What makes a California will legally enforceable when it matters most?

In California, a last will and testament is reviewed under probate standards that focus on intent, capacity, and execution. Clear drafting reduces ambiguity, limits misinterpretation, and helps families avoid unnecessary conflict during estate administration.

• Preparation: Review future needs regularly.
• Validation: Check legal requirements.
• Parties: Update testator details.

When a will is drafted with California probate review in mind, it becomes a stabilizing roadmap rather than a source of conflict. Clear intent, proper authority, and compliant execution protect both families and estates.

Controlling Legal Standards Governing California Estate and Asset Transfers

• Probate & Court Procedure:
  California Courts – Wills, Estates, and Probate
  The official judicial branch guide for navigating the probate process; it provides updated 2026 checklists for determining if an estate qualifies for “Summary Probate” under the $208,850 personal property limit or the $750,000 primary residence threshold (AB 2016).
• Property Tax Reassessment (Prop 19):
  California State Board of Equalization (Prop 19)
  The definitive resource for understanding the “Parent-to-Child” reassessment exclusion; it outlines the strict one-year deadline for heirs to move into an inherited home as their primary residence to maintain the parent’s low property tax base.
• Advance Healthcare Planning:
  California Attorney General – Advance Health Care Directive
  Provides the official California statutory form and legal guidelines for appointing a health care agent; this resource emphasizes the necessity of combining a medical power of attorney with a HIPAA release to ensure doctors can communicate with family during an emergency.
• Federal Estate & Gift Tax:
  IRS Estate Tax Guidelines
  The authoritative federal portal for estate and gift tax reporting; this page reflects the 2026 “OBBBA” permanent exemption of $15 million per person, effectively replacing the previously scheduled Tax Cuts and Jobs Act (TCJA) sunset.
• Digital Asset Access (RUFADAA):
  California RUFADAA Law (Probate Code §§ 870-884)
  Access the full statutory text of the Revised Uniform Fiduciary Access to Digital Assets Act; it explains why executors are legally barred from accessing encrypted accounts, email, or crypto-wallets unless the decedent provided explicit “prior consent” in their estate plan.