More California families can transfer assets to descendants without undergoing a lengthy and often costly probate process under a new state law. Assembly Bill 2016, which takes effect April 1, changes the definition of “small estates” by raising the probate threshold to $750,000, a massive leap from $184,500. WHAT CALIFORNIA’S AB 2016 SAYS Estates falling under AB 2016’s new “small estates” threshold will now be exempt from the formal probate process, allowing assets to be transferred more quickly and with fewer legal hurdles. The bill also calls for a review of this threshold every three years to account for inflation and other economic factors. AB 2016’s intent is to simplify the transfer of assets, reduce the time and costs associated with probate, and make it easier for families to handle smaller estates. WHY EVEN SMALL ESTATES STILL NEED A PLAN Even with the expanded threshold, families with “small” estates still need a strategic and formalized plan. Without proper planning, your children may lose eligibility for government benefits like Supplemental Security Income (SSI) and Medi-Cal if they receive an inheritance directly. Additionally, if you have minor children, estate planning is still crucial. Without a plan, the court will determine guardianship for your children and the assets they inherit, which may not align with your wishes. WHAT AB 2016 MEANS FOR BUSINESS OWNERS AB 2016 may not simplify estate planning as much for business owners as it does for personal assets. Business succession planning should still be handled formally and strategically, regardless of whether your business assets fall under the $750,000 threshold. To ensure your business’s smooth transition, you will still need to establish an entity and have a trust in place to manage the transfer of ownership. Without these critical documents executed, your business could face unnecessary financial repercussions, disputes, or even dissolution after you pass away. MANAGE YOUR ESTATE WITH CONFIDENCE Don’t let the expanded definition of “small estates” lull you into complacency. At Dahl Law Group, we provide effective legal counsel to guide you and your loved ones through protecting your legacies, children, and businesses. Contact us at our offices in Sacramento or San Diego today to discuss how we can help you plan with confidence, regardless of the size of your estate. Small Estates, Big Benefits AB 2016’s Impact on California Families and Business Owners
Did You Know? Did you know that December is known for having the shortest days of the year due to the winter solstice, which typically occurs around Dec. 21 or 22 in the Northern Hemisphere? It’s true! The winter solstice marks the point when the Earth’s axial tilt is farthest away from the sun, causing the shortest period of daylight and the longest night of the year.
Let’s explore further!
On this day, the North Pole is most tilted — a 23.5-degree angle away from the sun — which results in less sunlight reaching the Northern Hemisphere. As a result, locations farthest from the equator experience the most significant reduction in daylight. For example, places like Alaska have only a few hours of sunlight in December.
Despite the shorter days, the winter solstice
also marks a turning point. After this, the days gradually lengthen, bringing more daylight as we move toward spring.
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