California has some of the most consequential state-specific rules for estate settlement in the country — from its high probate threshold and mandatory statutory executor fees to community property rules that govern how a spouse's assets transfer automatically. This guide covers the six areas where California law most affects what you need to do.
California can be expensive for formal probate, so the first question is always whether the estate can use a simpler transfer path instead.
- Community property and beneficiary designations often keep part of the estate out of probate.
- California has simple-transfer options for some smaller estates and some real property situations.
- Formal probate in California usually involves more court procedure and higher costs than many other states.
Probate
Probate & Small Estate Rules in California
California probate is filed in the Superior Court of the county where the deceased lived. California's small estate threshold is $184,500 — one of the highest in the country — meaning that many California families can use a simplified affidavit procedure instead of opening formal probate. The affidavit can be used 40 days after death for personal property; real property under the threshold can be transferred via a court petition rather than full probate.
When full probate is required, California uses a statutory fee schedule for both the executor and the estate attorney — each receives the same percentage: 4% of the first $100,000, 3% of the next $100,000, 2% of the next $800,000, and 1% on amounts above that. On a $1 million estate, that means roughly $23,000 each for executor and attorney. California probate typically takes 12–18 months due to mandatory publication periods and court scheduling.
Wills
Will Signing Requirements in California
A valid California will requires the signature of the testator (the person making the will) plus two adult witnesses who sign in each other's presence. Notarization is not required for a standard witnessed will in California. Witnesses should not be beneficiaries under the will — if a witness is also a beneficiary, there is a presumption of improper influence that can void or reduce that gift.
California also recognizes holographic wills — wills written entirely in the testator's own handwriting and signed, with no witnesses required. While legally valid, holographic wills are more frequently challenged in court and should not substitute for a properly witnessed will when possible.
If you find a handwritten document that appears to be a will, do not discard it — present it to the Superior Court. Courts take holographic wills seriously even if informal.
Advance Directive
California Advance Health Care Directive
California uses a combined form called the Advance Health Care Directive (AHCD) that covers both a living will (your treatment preferences) and a healthcare proxy (who makes decisions if you can't). The form is published by the California Department of Justice and is widely accepted by hospitals, hospice providers, and care facilities throughout the state.
To be valid, the California AHCD must be signed by the principal and either two witnesses or a notary public. Witnesses cannot be: the person's healthcare provider or an employee of that provider, the operator or employee of a residential care facility where the person lives, the person's agent under the directive, or anyone who would inherit from the person.
If you are settling an estate and the deceased had an AHCD on file, hospitals and care facilities are required to honor it. Conflicts between family members and an AHCD are resolved by the healthcare agent named in the document — that person's authority generally supersedes family members who were not designated.
Community Property
How Community Property Works at Death in California
California is one of nine community property states. Under California law, all property acquired by either spouse during the marriage is jointly owned — each spouse owns an undivided one-half interest. Property owned before marriage, or received as a gift or inheritance during marriage, is separate property.
At death, the deceased spouse can only dispose of their half of community property through a will or trust. The surviving spouse's half is already theirs — it does not pass through the estate at all. This has major practical implications:
- If the deceased had no will, their half of community property generally passes to the surviving spouse under California's intestate succession law — no probate required if title is held correctly.
- If there is a will that leaves the deceased's half to someone other than the surviving spouse, the surviving spouse may exercise the right to their community half regardless.
- Real estate held as community property with right of survivorship passes automatically to the survivor without probate.
Community property also carries a significant tax advantage: both the deceased's half and the surviving spouse's half receive a stepped-up cost basis at death. This reduces capital gains tax if the surviving spouse later sells the asset. This is more favorable than common-law states, where only the deceased's half is stepped up.
Vehicle Transfer
Transferring a Vehicle After Death in California
California allows vehicles valued under $100,000 (current replacement value) to be transferred to a surviving spouse or heir without probate using the REG 5 form (Affidavit for Transfer Without Probate), available from the California DMV. The affidavit can be submitted 40 days after the date of death.
The person claiming the vehicle must complete the REG 5, have it notarized, and submit it to the DMV along with the California Certificate of Title, a certified copy of the death certificate, and the applicable transfer fee. If the vehicle has a loan, the lienholder must also release the title before transfer can proceed.
Vehicles held in a living trust transfer directly to the successor trustee without any DMV affidavit — one of the practical advantages of a revocable living trust in California.
Medi-Cal Recovery
Medi-Cal Estate Recovery in California
Medi-Cal (California's Medicaid program) has the right to seek reimbursement from a deceased beneficiary's estate for long-term care costs paid after age 55. As of January 1, 2024, California significantly reformed its estate recovery program: Medi-Cal can now only recover from the probate estate — assets that must go through court. It can no longer recover from assets held in living trusts, joint tenancy, community property with right of survivorship, or accounts with beneficiary designations.
This is a meaningful change from prior law. Assets that pass outside probate are now fully protected from Medi-Cal recovery. If you are settling an estate where the deceased received Medi-Cal benefits for long-term care, you should:
- Contact the California Department of Health Care Services (DHCS) to request a recovery claim determination.
- Identify which assets are in the probate estate versus which pass outside probate — only the former are at risk.
- Note that recovery is waived if a surviving spouse is living, a minor child is living, or a blind or disabled child is living regardless of age.
The 2024 reform makes living trusts significantly more valuable for Medi-Cal recipients in California — assets in a trust bypass probate and are now shielded from recovery entirely.
We reviewed this page against official court, agency, and primary-source materials that map to the probate, transfer, directive, tax, or vehicle rules most likely to matter after a death in this state.