Good news for heirs in California: you can collect up to $208,850 with a simple form and skip the long legal inheritance process

Dealing with an inheritance often means navigating complex rules at the same time families are coping with a loss. In California, one of the biggest worries for heirs is probate, the formal court process to transfer a person’s property after they die, which can be long and expensive. But not every family has to go through it.

Money.Can the IRS seize an inheritance? The two cases in which the agency can claim inherited assets

abre en nueva pestaña

According to the California Courts, heirs can use simpler procedures when the estate is below certain values set by law. The most common is the small estate affidavit, a sworn statement that lets them collect the property directly.

How much heirs can collect

For deaths on or after April 1, 2025, the limit is $208,850. Before that date, it was $184,500 (for deaths since April 2022) and $166,250 (for earlier deaths). The amounts are adjusted every three years, and the next update is scheduled for April 1, 2028.

The affidavit is used for personal property, such as bank accounts, investments, and belongings. Heirs present it directly to the bank or institution that holds the assets.

The requirements are:

• At least 40 days must have passed since the death.
• No probate case can be open for the estate.
• The total value must be at or below $208,850, and debts or mortgages cannot be subtracted.

What doesn’t count toward the limit

According to the courts, some assets are not included when adding up the value of the estate:

• Cars, boats, and mobile homes.
• Real estate outside California.
• Property in a trust, including a living trust.
• Property owned jointly with someone else, including joint bank accounts.
• Property that passes directly to a surviving spouse or domestic partner.
• Life insurance and other benefits paid directly to a named beneficiary.

What happens with the family home on inheritance?

Real estate follows different rules. Since April 1, 2025, a state law allows heirs to transfer the deceased person’s main home through a simplified court process if it is worth $750,000 or less. For other real property, the limit for a simplified transfer is $69,625.

Even when probate is not required, attorneys note that some banks may ask for additional documents, so families should review the requirements carefully or consult a probate lawyer before filing.