Bill Text: CA AB2016 | 2023-2024 | Regular Session | Amended

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Bill Title: Decedents’ estates.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Engrossed) 2024-06-06 - From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD. [AB2016 Detail]

Download: California-2023-AB2016-Amended.html

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Amended  IN  Senate  June 06, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2016

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Introduced by Assembly Member Maienschein
(Coauthors: Assembly Members McKinnor and Pacheco)

January 31, 2024

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An act to amend Sections 890, 6602, 13151, 13154, and 13200 of 13100, 13101, 13150, 13151, 13152, and 13154 of, and to repeal Section 13158 of, the Probate Code, relating to estates.

LEGISLATIVE COUNSEL'S DIGEST

AB 2016, as amended, Maienschein. Estates: small estates. Decedents’ estates.

Existing law establishes procedures through which a successor of the decedent may, without procuring letters of administration or awaiting probate of the will, dispose of a decedent’s real and personal property by utilizing an affidavit or declaration under penalty of perjury if the gross value of the decedent’s estate does not exceed $166,250. Existing law also establishes procedures through which a successor of the decedent may, without procuring letters of administration or awaiting probate of the will, dispose of a decedent’s real property by filing a petition in the superior court if the gross value of the decedent’s real property does not exceed $166,250. Existing law excludes certain property from the determination of the value of the estate, including property held in joint tenancy. Existing law requires the Judicial Council to adjust the dollar amounts under these provisions, as specified, every 3 years.

This bill would exclude real property that was included in a petition to the superior court from the affidavit procedures. The bill would change the petition procedures to apply only to real property that was the decedent’s primary residence in this state and has a gross value that does not exceed $750,000 or the amount specified by Judicial Counsel after review. The bill would specify that, for these purposes, “primary residence” is not limited to the decedent’s residence at the time of their death.

Existing law authorizes procedures to dispose of a decedent’s personal and real property that is valued below specified dollar amounts without a full probate administration. Existing law requires, on April 1, 2022, and at each 3-year interval ending on April 1 thereafter, the Judicial Council to adjust the dollar amounts under these provisions, as specified.

This bill would, starting April 1, 2025, and until March 31, 2028, increase the specified dollar amounts for a small estate to qualify for disposition without a full probate administration to $750,000.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YESNO   Local Program: NO  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.Section 890 of the Probate Code is amended to read:

890.

(a)On April 1, 2022, and at each three-year interval ending on April 1 thereafter, the dollar amounts specified in Chapter 6 (commencing with Section 6600) of Part 3 of Division 6 and in Division 8 (commencing with Section 13000) in effect immediately before that date shall be adjusted as provided in subdivision (b).

(b)(1)On April 1, 2022, and at each three-year interval ending on April 1 thereafter, through March 31, 2025, the Judicial Council shall determine the amount of the adjustment based on the change in the United States city average of the “Consumer Price Index for All Urban Consumers,” as published by the United States Bureau of Labor Statistics, from the December that is 40 months prior to the adjustment to the December immediately preceding the adjustment, with each adjusted amount rounded to the nearest twenty-five dollars ($25).

(2)For the period starting April 1, 2025, through March 31, 2028, the adjusted amount shall be seven hundred fifty thousand dollars ($750,000).

(3)On April 1, 2028, and at each three-year interval on April 1 thereafter, the Judicial Council shall determine the amount of the adjustment based on the change in the United States city average of the “Consumer Price Index for All Urban Consumers,” as published by the United States Bureau of Labor Statistics, from the December that is 40 months prior to the adjustment to the December immediately preceding the adjustment, with each adjusted amount rounded to the nearest twenty-five dollars ($25).

(c)Beginning April 1, 2022, the Judicial Council shall, after adjusting the amounts as directed in subdivision (b), publish a list of the current dollar amounts for the provisions identified in subdivision (a), together with the date of the next scheduled adjustment.

(d)Adjustments made under subdivision (a) do not apply when the decedent’s death preceded the date of adjustment.

SEC. 2.Section 6602 of the Probate Code is amended to read:

6602.

A petition may be filed under this chapter requesting an order setting aside the decedent’s estate to the decedent’s surviving spouse and minor children, or one or more of them, as provided in this chapter, if the net value of the decedent’s estate, over and above all liens and encumbrances at the date of death and over and above the value of a probate homestead interest set apart out of the decedent’s estate under Section 6520, does not exceed seven hundred fifty thousand dollars ($750,000), as adjusted periodically in accordance with Section 890.

SECTION 1.

 Section 13100 of the Probate Code is amended to read:

13100.

 Excluding the property described in Section 13050, 13050 and any property included in a petition filed under Section 13151, if the gross value of the decedent’s real and personal property in this state does not exceed one hundred sixty-six thousand two hundred fifty dollars ($166,250), as adjusted periodically in accordance with Section 890, and if 40 days have elapsed since the death of the decedent, the successor of the decedent may, without procuring letters of administration or awaiting probate of the will, do any of the following with respect to one or more particular items of property:

(a) Collect any particular item of property that is money due the decedent.

(b) Receive any particular item of property that is tangible personal property of the decedent.

(c) Have any particular item of property that is evidence of a debt, obligation, interest, right, security, or chose in action belonging to the decedent transferred, whether or not secured by a lien on real property.

SEC. 2.

 Section 13101 of the Probate Code is amended to read:

13101.

 (a) To collect money, receive tangible personal property, or have evidences of a debt, obligation, interest, right, security, or chose in action transferred under this chapter, an affidavit or a declaration under penalty of perjury under the laws of this state shall be furnished to the holder of the decedent’s property stating all of the following:

(1) The decedent’s name.

(2) The date and place of the decedent’s death.

(3) “At least 40 days have elapsed since the death of the decedent, as shown in a certified copy of the decedent’s death certificate attached to this affidavit or declaration.”

(4) Either of the following, as appropriate:

(A) “No proceeding is now being or has been conducted in California for administration of the decedent’s estate.”

(B) “The decedent’s personal representative has consented in writing to the payment, transfer, or delivery to the affiant or declarant of the property described in the affidavit or declaration.”

(5) “The current gross fair market value of the decedent’s real and personal property in California, excluding the property described in Section 13050 of the California Probate Code, Code and any property included in a petition filed under Section 13151 of the California Probate Code, does not exceed [Insert dollar amount specified in subdivision (g) of Section 13101 of the California Probate Code].”

(6) A description of the property of the decedent that is to be paid, transferred, or delivered to the affiant or declarant.

(7) The name of the successor of the decedent (as decedent, as defined in Section 13006 of the California Probate Code) 13006, to the described property.

(8) Either of the following, as appropriate:

(A) “The affiant or declarant is the successor of the decedent (as defined in Section 13006 of the California Probate Code) to the decedent’s interest in the described property.”

(B) “The affiant or declarant is authorized under Section 13051 of the California Probate Code to act on behalf of the successor of the decedent (as defined in Section 13006 of the California Probate Code) with respect to the decedent’s interest in the described property.”

(9) “No other person has a superior right to the interest of the decedent in the described property.”

(10) “The affiant or declarant requests that the described property be paid, delivered, or transferred to the affiant or declarant.”

(11) “The affiant or declarant affirms or declares under penalty of perjury under the laws of the State of California that the foregoing is true and correct.”

(b) Where more than one person executes the affidavit or declaration under this section, the statements required by subdivision (a) shall be modified as appropriate to reflect that fact.

(c) If the particular item of property to be transferred under this chapter is a debt or other obligation secured by a lien on real property and the instrument creating the lien has been recorded in the office of the county recorder of the county where the real property is located, the affidavit or declaration shall satisfy the requirements both of this section and of Section 13106.5.

(d) A certified copy of the decedent’s death certificate shall be attached to the affidavit or declaration.

(e) If the decedent’s personal representative has consented to the payment, transfer, or delivery of the described property to the affiant or declarant, a copy of the consent and of the personal representative’s letters shall be attached to the affidavit or declaration.

(f) If the decedent dies on or after April 1, 2022, the list of adjusted dollar amounts, published in accordance with subdivision (c) of Section 890, in effect on the date of the decedent’s death, shall be attached to the affidavit or declaration.

(g) (1) If the decedent dies prior to April 1, 2022, the dollar amount for paragraph (5) of subdivision (a) is one hundred sixty-six thousand two hundred fifty dollars ($166,250).

(2) If the decedent dies on or after April 1, 2022, the dollar amount for paragraph (5) of subdivision (a) is the adjusted dollar amount, published in accordance with subdivision (c) of Section 890, in effect on the date of the decedent’s death.

SEC. 3.

 Section 13150 of the Probate Code is amended to read:

13150.

 The procedure provided by this chapter may be used only if one of the following requirements is satisfied:

(a) No proceeding is being or has been conducted in this state for administration of the decedent’s estate.

(b) (1) The decedent’s personal representative consents in writing to use of the procedure provided by this chapter to determine that real property of the decedent that was the decedent’s primary residence is property passing to the petitioners.

(2) For purposes of this chapter, “primary residence” is not limited to the decedent’s residence at the time of their death.

SEC. 3.SEC. 4.

 Section 13151 of the Probate Code is amended to read:

13151.

 Exclusive of the property described in Section 13050, if If a decedent dies leaving real property that was their primary residence in this state and the gross value of the decedent’s real and personal property in this state that real property does not exceed seven hundred fifty thousand dollars ($750,000), as adjusted periodically in accordance with Section 890, and 40 days have elapsed since the death of the decedent, the successor of the decedent to an interest in a particular item of property that is that real property, without procuring letters of administration or awaiting the probate of the will, may file a petition in the superior court of the county in which the estate of the decedent may be administered requesting a court order determining that the petitioner has succeeded to that real property. A petition under this chapter may include an additional request that the court make an order determining that the petitioner has succeeded to personal property described in the petition.

SEC. 5.

 Section 13152 of the Probate Code is amended to read:

13152.

 (a) The petition shall be verified by each petitioner, shall contain a request that the court make an order under this chapter determining that the property described in the petition is property passing to the petitioner, and shall state all of the following:

(1) The facts necessary to determine that the petition is filed in the proper county.

(2) The gross value of the decedent’s real and personal property real property that was the decedent’s primary residence in this state, excluding the property described in Section 13050, as shown by the inventory and appraisal attached to the petition, does not exceed the dollar amount specified in subdivision (f).

(3) A description of the particular item of real property in this state that the petitioner alleges is property of the decedent passing to the petitioner, and a description of the personal property that the petitioner alleges is property of the decedent passing to the petitioner if the requested order also is to include a determination that the described personal property is property passing to the petitioner. petitioner and the facts upon which the petitioner bases the allegation that the described real property was the decedent’s primary residence.

(4) The facts upon which the petitioner bases the allegation that the described property is property passing to the petitioner.

(5) Either of the following, as appropriate:

(A) A statement that no proceeding is being or has been conducted in this state for administration of the decedent’s estate.

(B) A statement that the decedent’s personal representative has consented in writing to use of the procedure provided by this chapter.

(6) Whether estate proceedings for the decedent have been commenced in any other jurisdiction and, if so, where those proceedings are pending or were conducted.

(7) The name, age, address, and relation to the decedent of each heir and devisee of the decedent, the names and addresses of all persons named as executors of the will of the decedent, and, if the petitioner is the trustee of a trust that is a devisee under the will of the decedent, the names and addresses of all persons interested in the trust, as determined in cases of future interests pursuant to paragraph (1), (2), or (3) of subdivision (a) of Section 15804, so far as known to any petitioner.

(8) The name and address of each person serving as guardian or conservator of the estate of the decedent at the time of the decedent’s death, so far as known to any petitioner.

(b) An inventory and appraisal in the form set forth in Section 8802 of the decedent’s real and personal property in this state, excluding the property described in Section 13050, real property that was the decedent’s primary residence in this state shall be attached to the petition. The appraisal shall be made by a probate referee selected by the petitioner from those probate referees appointed by the Controller under Section 400 to appraise property in the county where the real property is located. The appraisal shall be made as provided in Part 3 (commencing with Section 8800) of Division 7. The petitioner may appraise the assets that a personal representative could appraise under Section 8901.

(c) If the petitioner bases the petitioner’s claim to the described property upon the will of the decedent, a copy of the will shall be attached to the petition.

(d) If the decedent’s personal representative has consented to use of the procedure provided by this chapter, a copy of the consent shall be attached to the petition.

(e) If the decedent dies on or after April 1, 2022, the list of adjusted dollar amounts, published in accordance with subdivision (c) of Section 890, in effect on the date of the decedent’s death shall be attached to the petition.

(f) (1) If the decedent dies prior to April 1, 2022, the dollar amount for paragraph (2) of subdivision (a) is one hundred sixty-six thousand two hundred fifty dollars ($166,250).

(2) If the decedent dies on or after April 1, 2022, through March 31, 2025, the dollar amount for paragraph (2) of subdivision (a) is the adjusted dollar amount, published in accordance with subdivision (c) of Section 890, in effect on the date of the decedent’s death.

(3) If the decedent dies on or after April 1, 2025, through March 31, 2028, the dollar amount for paragraph (2) of subdivision (a) is seven hundred fifty thousand dollars ($750,000).

(4) If the decedent dies on or after April 1, 2028, the dollar amount for paragraph (2) of subdivision (a) is the adjusted dollar amount, published in accordance with subdivision (c) of Section 890, in effect on the date of the decedent’s death.

SEC. 4.SEC. 6.

 Section 13154 of the Probate Code is amended to read:

13154.

 (a) If the court makes the determinations required under subdivision (b), the court shall issue an order determining (1) that real property, that the real property that was the decedent’s primary residence, to be described in the order, of the decedent is property passing to the petitioners and the specific property interest of each petitioner in the described property and (2) if the petition so requests, that personal property, to be described in the order, of the decedent is property passing to the petitioners and the specific property interest of each petitioner in the described property.

(b) The court may make an order under this section only if the court makes all of the following determinations:

(1) The gross value of the decedent’s real and personal property in this state, excluding the property described in Section 13050, real property that was the decedent’s primary residence in this state does not exceed seven hundred fifty thousand dollars ($750,000), as adjusted periodically in accordance with Section 890.

(2) Not less than 40 days have elapsed since the death of the decedent.

(3) Whichever of the following is appropriate:

(A) No proceeding is being or has been conducted in this state for administration of the decedent’s estate.

(B) The decedent’s personal representative has consented in writing to use of the procedure provided by this chapter.

(4) The property described in the order is property of the decedent passing to the petitioner.

(c) If the petition has attached an inventory and appraisal that satisfies the requirements of subdivision (b) of Section 13152, the determination required by paragraph (1) of subdivision (b) of this section shall be made on the basis of the verified petition and the attached inventory and appraisal, unless evidence is offered by a person opposing the petition that the gross value of the decedent’s real and personal property in this state, excluding the property described in Section 13050, real property that was the decedent’s primary residence in this state exceeds seven hundred fifty thousand dollars ($750,000), as adjusted periodically in accordance with Section 890.

SEC. 5.Section 13200 of the Probate Code is amended to read:

13200.

(a)No sooner than six months from the death of a decedent, a person or persons claiming as successor of the decedent to a particular item of property that is real property may file in the superior court in the county in which the decedent was domiciled at the time of death, or if the decedent was not domiciled in this state at the time of death, then in any county in which real property of the decedent is located, an affidavit in the form prescribed by the Judicial Council pursuant to Section 1001 stating all of the following:

(1)The name of the decedent.

(2)The date and place of the decedent’s death.

(3)A legal description of the real property and the interest of the decedent therein.

(4)The name and address of each person serving as guardian or conservator of the estate of the decedent at the time of the decedent’s death, so far as known to the affiant.

(5)“The gross value of all real property in the decedent’s estate located in California, as shown by the inventory and appraisal attached to this affidavit, excluding the real property described in Section 13050 of the California Probate Code, does not exceed [Insert dollar amount specified in subdivision (h)].”

(6)“At least six months have elapsed since the death of the decedent as shown in a certified copy of decedent’s death certificate attached to this affidavit.”

(7)Either of the following, as appropriate:

(A)“No proceeding is now being or has been conducted in California for administration of the decedent’s estate.”

(B)“The decedent’s personal representative has consented in writing to use of the procedure provided by this chapter.”

(8)“Funeral expenses, expenses of last illness, and all unsecured debts of the decedent have been paid.”

(9)“The affiant is the successor of the decedent (as defined in Section 13006 of the Probate Code) and to the decedent’s interest in the described property, and no other person has a superior right to the interest of the decedent in the described property.”

(10)“The affiant declares under penalty of perjury under the laws of the State of California that the foregoing is true and correct.”

(b)For each person executing the affidavit, the affidavit shall contain a notary public’s certificate of acknowledgment identifying the person.

(c)An inventory and appraisal of the decedent’s real property in this state, excluding the real property described in Section 13050, shall be attached to the affidavit. The inventory and appraisal of the real property shall be made as provided in Part 3 (commencing with Section 8800) of Division 7. The appraisal shall be made by a probate referee selected by the affiant from those probate referees appointed by the Controller under Section 400 to appraise property in the county where the real property is located.

(d)If the affiant claims under the decedent’s will and no estate proceeding is pending or has been conducted in California, a copy of the will shall be attached to the affidavit.

(e)A certified copy of the decedent’s death certificate shall be attached to the affidavit. If the decedent’s personal representative has consented to the use of the procedure provided by this chapter, a copy of the consent and of the personal representative’s letters shall be attached to the affidavit.

(f)If the decedent dies on or after April 1, 2022, the list of adjusted dollar amounts, published in accordance with subdivision (c) of Section 890, in effect on the date of the decedent’s death shall be attached to the affidavit.

(g)The affiant shall deliver pursuant to Section 1215 a copy of the affidavit and attachments to a person identified in paragraph (4) of subdivision (a).

(h)(1)For a decedent who dies prior to April 1, 2022, the dollar amount for paragraph (5) of subdivision (a) is fifty-five thousand four hundred twenty-five dollars ($55,425).

(2)For a decedent who dies on or after April 1, 2022, and prior to April 1, 2025, the dollar amount for paragraph (5) of subdivision (a) is the adjusted dollar amount, published in accordance with subdivision (c) of Section 890, in effect as of April 1, 2022.

(3)For a decedent who dies on or after April 1, 2025, and prior to April 1, 2028, the dollar amount for paragraph (5) of subdivision (a) is seven hundred fifty thousand dollars ($750,000).

(4)For a decedent who dies on or after April 1, 2028, the dollar amount for paragraph (5) of subdivision (a) is the adjusted dollar amount, published in accordance with subdivision (c) of Section 890, in effect on the date of the decedent’s death.

SEC. 7.

 Section 13158 of the Probate Code is repealed.

13158.

Nothing in this chapter excuses compliance with Chapter 3 (commencing with Section 13100) by the holder of the decedent’s personal property if an affidavit or declaration is furnished as provided in that chapter.