Appraisals for Spousal Petitions

Jason just lost his wife, Maria, unexpectedly. She had meticulously prepared her estate plan – a trust, powers of attorney, the works. But she’d recently inherited a small parcel of undeveloped land from her mother, and in the flurry of everything else, it never made it into the trust. Now, Jason is facing over $60,000 in probate fees just to transfer that single piece of property, despite the overall estate being quite modest. It’s a heartbreaking situation, and unfortunately, all too common.

Can a Spousal Property Petition Avoid Probate Altogether?

Absolutely. As an Estate Planning Attorney and CPA with over 35 years of experience here in Moreno Valley, I’ve seen firsthand how effective the Spousal Property Petition (Probate Code § 13650) can be. This is a powerful tool that allows for the transfer of unlimited assets to a surviving spouse without the need for full probate administration. The key, however, is that the property must be characterized as either community property or quasi-community property. Often, clients assume everything is automatically community property simply because they were married, but that’s not always the case – especially with inherited or gifted assets. My CPA background is incredibly valuable here, as we can accurately determine the characterization of assets to maximize the benefits of this petition.

What Happens if Assets Aren’t Properly Titled?

This is where things get tricky. I frequently advise clients to fund their trusts during their lifetime, meaning to retitle assets into the trust’s name. If an asset is supposed to be in the trust (listed on Schedule A, for example) but wasn’t retitled before death, it can drag the entire estate into full probate. Fortunately, there’s a remedy: the Heggstad Petition (Probate Code § 850). This allows a court to declare that the decedent intended for the asset to be in the trust, effectively “curing” the title defect and keeping that single asset out of probate. However, it’s an additional court filing and adds expense, which is why proactive funding is always the best approach.

Are Appraisals Always Required for Spousal Petitions?

Generally, no. One of the significant advantages of the Spousal Property Petition is its relative simplicity. Unlike full probate, you don’t typically need formal appraisals for most assets. The Court accepts a reasonably believable valuation. However, there are exceptions. If the estate includes business interests, or unique assets with no readily ascertainable market value, the Court may require an appraisal. It’s also crucial to remember that while a formal appraisal isn’t always mandated, providing accurate and defensible valuations is still your responsibility. As a CPA, I’m well-equipped to assist with this, ensuring we establish a solid supportable value.

What About Small Estate Procedures? Could Those Be Used Instead?

For very small estates, the Small Estate Affidavit (Probate Code § 13100) can be a viable option. However, for deaths occurring on or after April 1, 2025, the gross value threshold for using a Small Estate Affidavit has increased to $208,850. This procedure allows successors to collect personal property without court involvement. But remember, this total MUST NOT include assets held in joint tenancy, trust, or those with named beneficiaries (POD/TOD), but MUST include the value of any real property unless that property is handled via a separate summary procedure. The Spousal Property Petition is often preferable, even for estates near that $208,850 threshold, because of its broader scope and fewer restrictions.

What if the Property is a Primary Residence?

If the property is a primary residence, things get even more nuanced. You might qualify for either the Affidavit for Real Property of Small Value or AB 2016 (Probate Code § 13151). Under AB 2016, a primary residence valued up to $750,000 qualifies for a ‘Petition for Succession’ rather than full probate administration. However, this is a court-filed Petition requiring a hearing and a Judge’s Order, while the affidavit is a simpler, non-court process. The Affidavit for Real Property of Small Value applies to properties valued at less than $69,625 (the 2025/2026 adjusted limit).

Understanding the Options: Choosing the right path—Spousal Petition, Small Estate Affidavit, AB 2016, or Heggstad Petition—depends on the specific circumstances of the estate.
Asset Characterization: Properly identifying community vs. separate property is crucial.
Proactive Funding: Regularly funding your trust is the single most effective step you can take to avoid probate headaches.

What causes California probate cases to spiral into delay, disputes, and extra cost?

California probate is designed to provide court-supervised transfer of property, yet cases often break down when authority is unclear, required steps are missed, or disputes arise over assets, notice, and fiduciary conduct. When the process is misunderstood, families can face avoidable delay, escalating conflict, and increased exposure to creditor issues, hearings, or litigation before the estate can close.

• Will-Based Power: Secure executor authority letters if a will exists.
• Administrator Authority: Obtain administrator authority letters if there is no will.
• Identify Players: Clarify roles using key parties.

California probate is most manageable when authority is documented early, assets are classified correctly, and procedure is followed consistently from petition through closing. When the process is approached with realistic expectations about notice, claims, accounting, and dispute risk, the estate is more likely to move toward closure without avoidable conflict or delay.

Verified Authority on California Probate Alternatives

• Personal Property Affidavit ($208,850 Limit): California Probate Code § 13100 (Small Estate Affidavit)
  For deaths on or after April 1, 2025, the gross value threshold for using a Small Estate Affidavit has increased to $208,850. This procedure allows successors to collect cash, stocks, and personal items without court involvement. Warning: This total MUST NOT include assets held in joint tenancy, trust, or those with named beneficiaries (POD/TOD), but MUST include the value of real property unless handled via a separate summary procedure.
• Primary Residence Succession (AB 2016): California Probate Code § 13151 (Petition for Succession)
  You must distinguish between the Affidavit for Real Property of Small Value (strictly for property <$69,625) and AB 2016. Under AB 2016, a primary residence valued up to $750,000 qualifies for a ‘Petition for Succession’ rather than full probate. This is a court-filed Petition requiring a Judge’s Order, though it is significantly faster than full administration.
• Spousal Property Petition (Unlimited): California Probate Code § 13650 (Spousal Transfers)
  This powerful alternative allows for the transfer of unlimited assets to a surviving spouse or domestic partner without full probate administration, regardless of the estate’s value. It is strictly for assets passing to a spouse and requires the property be characterized as community property or quasi-community property.
• Trust Assets & The “Heggstad” Petition: California Probate Code § 850 (Heggstad Petition)
  If a decedent intended an asset to be in their trust (e.g., listed on Schedule A) but failed to retitle it (the “Oops” factor), a Section 850 Petition can obtain a court order confirming the asset as trust property. This “cures” the title defect and avoids opening a full probate estate for that single asset.
• Vacant Land & Timeshares: California Probate Code § 13200 (Real Property of Small Value)
  For real property interests valued at less than $69,625 (the 2025/2026 adjusted limit), successors can file an Affidavit for Real Property of Small Value with the Court Clerk and record a certified copy with the County Recorder. This completely bypasses the need for a hearing or judge’s order.
• Vehicle & Vessel Transfers (DMV): DMV Form REG 5 (Affidavit for Transfer Without Probate)
  Vehicles and vessels may be transferred outside of probate using the Affidavit for Transfer Without Probate (REG 5). Critically, the value of the vehicle is excluded from the $208,850 small estate calculation, meaning a high-value car does not disqualify an estate from using summary procedures.
• Digital Asset Access (RUFADAA): California Probate Code § 870 (RUFADAA)
  Even in summary administration, digital assets can be locked. Without specific RUFADAA language (Probate Code § 870) in your Will or Trust, service providers like Coinbase and Google can legally deny successors access to digital wallets and accounts, forcing a full probate just to retrieve them.