If you've been following California estate planning news, you may have heard the headline: heirs can now skip formal probate on a decedent's home if it's worth less than $750,000 — a huge jump from the old $61,500 limit. It sounds like it could make living trusts unnecessary for a lot of San Diego families. It doesn't. Here's why, and what the change actually means for homeowners in this county.

What Actually Changed

Two threshold increases took effect for 2026. The small estate affidavit limit for non-real estate assets increased to $208,850, up from $184,500 in 2025. More significantly, under Assembly Bill 2016, heirs can now bypass probate for estates containing real property valued under $750,000, up from the previous threshold of just $61,500. Effective April 1, 2025, AB 2016 introduces a new provision for transferring a decedent's primary residence without full probate, provided the property's gross value does not exceed $750,000.

Given how far below the median San Diego home price the old $61,500 figure sat, this is being described as a meaningful shift in a state where the median home price exceeds $700,000. For many families, a single condo or starter home that once forced a year-plus court process might now qualify for a simplified affidavit filing instead.

Why This Isn't a Replacement for a Trust

It's tempting to read that number and assume the trust conversation is settled. But a few things are worth understanding before drawing that conclusion:

• The threshold is a ceiling, not a guarantee. San Diego home values move fast, and many properties — especially anything with an ADU, a coastal lot, or a recent renovation — can sit right at or above that $750,000 gross value line, pulling the whole estate back into formal probate.
• Title and lending complications remain. Even where the affidavit process is available, the new $750,000 probate shortcut can help families avoid lengthy court delays, but title company resistance may still make a transferred home difficult to sell without careful legal planning. An affidavit is not the same as a clean chain of title a buyer's lender will accept without question.
• It only addresses death — not incapacity. Streamlined probate procedures are, as one estate planning firm put it, a clean-up tool: it doesn't handle incapacity (what happens if you're alive but can't sign documents) and it doesn't provide any asset protection from lawsuits or creditors. A revocable living trust, by contrast, lets a successor trustee step in immediately if you become unable to manage your own affairs — no court involved at all.
• It's an affidavit process, not automatic. Heirs still have to identify the right procedure, prepare the correct filings, and navigate whatever liens, co-ownership, or family disagreements exist — all after a loss, under time pressure.

Why This Matters More in San Diego Specifically

San Diego County's real estate math makes this threshold conversation especially relevant. Homes here routinely carry values that hover near or blast past the new $750,000 line once you factor in today's market. That means many local families sit in a gray zone — technically eligible for the shortcut on paper, but only if every detail lines up perfectly. If you're weighing how your property's value, title, or ownership structure affects your options, a conversation with a real estate professional familiar with local values — like the team at Cardenas & Company Real Estate Group — pairs naturally with the trust and title conversation, since property value and title vesting are exactly what determine whether a shortcut like this even applies.

The Bottom Line

Threshold increases are a genuine, welcome improvement to a slow, public, expensive system. But they're a patch, not a plan. A living trust still offers something no affidavit can: control over how and when your home transfers, privacy for your family, and continuity if you become incapacitated before you pass. In San Diego, where a single property can carry more value than most people's entire estate elsewhere in the country, that gap matters. As we like to say — a trust is a must.

This article is for general educational purposes only and is not legal advice. Estate planning laws are detailed and fact-specific; please consult a licensed attorney regarding your individual situation.

Ready to talk through your options? Visit www.TrustSanDiego.com to get connected with a living trust specialist serving San Diego homeowners.

Cardenas & Company Real Estate Group | Realty ONE Group Pacific | DRE 01862173