Hello everyone,
I hope this email finds you well. I'm checking in with a quick update about a couple big changes to California probate rules and a quick bit of wisdom from Warren Buffett.
First off, after April 1, 2025 a decedent's primary residence will now qualify for a simplified probate process if the fair market value of the property is $750,000 or less. (You can read the exciting new proposed rules here)! That's far more than the current $184,500 probate threshold and will absolutely reduce the time and cost needed to get a decedent's estate transferred. Be aware of this as a Petition to Determine Succession to Real Property may be an option for many people and this is far cheaper (maybe $3,500 - $5,000) than a full formal probate process ($18,000 statutory fee) would be for a similar property. So, that's good news for beneficiaries and terrible news for us attorneys! If that's not a win-win, I don't know what is! Now, this wouldn't likely apply in situations where a decedent's liquid assets exceed the probate threshold as that would still require a probate under the new law as I read it. But, most probates I get are linked to expensive residences so this update is likely to make the transfer process for a decedent's estate an easier endeavor.
Secondly, the standard probate threshold (currently $184,500) is set to be increased to approximately $200,000 during its current inflation adjustment in April 2025. The increase in this figure is helping to minimize probates for those pesky accounts some clients (but not mine!) never managed to get funded into their Trusts. So, that's good news as well.
Lastly, I came across this bit of wisdom from Warren Buffett that I thought I'd pass along. I read it and gave myself a bit of a pat on the back as I'm sure his message will resonate with any of you who have asked me about how to handle a discussion of your estate planning with your children or other beneficiaries. As you well know, I'm all for laying your cards on the table in order to avoid surprises, hurt feelings and problems later. I know I haven't convinced all of you that this is the best approach (after all, you won't be around to deal with the blowback), but I am happy that many of you are doing your best to provide for a smooth estate later.
That's all for now. Don't hesitate to check in if you need anything.
Jason Ebert
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