AB 2016 San Diego: $750K Probate Exemption Creates Inherited Home Sales Surge
TL;DR: AB 2016 Probate Exemption Fast Facts
California's AB 2016 (effective April 1, 2025) raises the simplified probate threshold to $750,000 for primary residences. San Diego neighborhoods like City Heights, North Park, and El Cajon now qualify for streamlined processing (2-3 months vs. 12+ months). Heirs still face a 40-day waiting period and carrying costs—making cash buyers who close in 10-14 days the preferred solution for quick liquidity.
California's AB 2016, effective April 1, 2025, has fundamentally changed how families handle inherited homes in San Diego. By raising the simplified probate threshold from $184,500 to $750,000 for primary residences, the law now covers approximately 40-45% of San Diego properties—creating a surge of motivated heirs seeking quick liquidity through cash sales.
The new law allows heirs to use a streamlined "Petition to Determine Succession to Real Property" instead of traditional probate, which typically takes 12-18 months in San Diego Superior Court. After a mandatory 40-day waiting period following death, families can file this simplified petition—provided the home was the decedent's primary residence and its court-appraised value stays under $750,000.
What AB 2016 Changes for San Diego Heirs
Under the previous $184,500 limit, nearly every San Diego home required full probate court proceedings. Legacy Homes Realty notes that AB 2016 eliminates "the year-long slog of traditional probate" for qualifying properties, allowing heirs to transfer ownership in as little as 2-3 months versus 12+ months.
However, Bethel Law Corporation warns that limitations remain significant: "Mortgages still need to be paid. Utilities continue to run. Property taxes accrue. But access to estate funds is frozen" during the waiting period. A probate referee must appraise the home, and if the valuation exceeds $750,000 by even one dollar, the estate reverts to full probate.
San Diego Neighborhoods That Qualify Under $750K
With San Diego's median home price at $950,012, the $750K threshold strategically targets specific neighborhoods:
City Heights
Remains one of the most affordable areas, with strong investor interest due to rent-to-price ratios and above-average inventory growth in 2026. Competition for move-in-ready properties stays high.
North Park and South Park
Feature median prices around $650,000-$850,000, with appreciation expected to outperform citywide averages due to urban revitalization.
El Cajon
Offers median prices of $600,000-$750,000, providing the largest pool of AB 2016-eligible properties in the county.
Allied Gardens and San Carlos
Historically fall within the $700,000-$900,000 range, with older homes frequently qualifying under the threshold.
Why Heirs Choose Cash Buyers for Inherited Homes
Despite AB 2016's streamlined process, heirs face immediate financial pressure. About 70% of inherited San Diego properties require probate proceedings, and even with AB 2016, the 40-day mandatory waiting period plus court filing timelines create months of carrying costs.
Cash buyers who purchase "as-is" eliminate financing contingencies, cover closing costs, and can close within 10-14 days once the petition is approved. For heirs managing sibling disputes, debt settlement, or avoiding deferred maintenance, this certainty proves invaluable.
The San Diego County Superior Court updated its probate rules effective January 1, 2026, now accepting e-Filing for probate cases—further streamlining the process when combined with experienced cash buyers familiar with AB 2016 requirements.
Cash Buyer Advantages for AB 2016 Heirs
- 10-14 day closing once petition is approved
- As-is purchases with no repair requirements
- No financing contingencies or appraisal delays
- Cover closing costs reducing heir expenses
- Eliminate carrying costs during probate period
FAQ: AB 2016 Probate Exemption in San Diego
Does AB 2016 apply to rental properties or vacation homes?
No. The $750K exemption applies exclusively to the decedent's primary residence at time of death. Investment properties, rentals, and second homes must go through traditional probate regardless of value.
What happens if the probate referee appraises my inherited home at $751,000?
The estate loses AB 2016 eligibility and reverts to full probate proceedings, which typically take 7-9 months minimum in San Diego. This valuation risk makes early cash buyer consultations critical—experienced buyers can provide preliminary valuations before the formal appraisal.
Can I sell the inherited home during the 40-day waiting period?
You cannot legally transfer ownership until the petition is approved by San Diego Superior Court. However, you can negotiate sales contracts with cash buyers contingent on court approval, allowing for immediate closing once the 40-day period expires and the petition is granted.
Need to sell an inherited San Diego property under AB 2016? Cash buyers familiar with probate procedures can close within 14 days of court approval. Contact experienced San Diego probate real estate specialists for a no-obligation consultation.