An interesting bill is currently weaving its way through the California legislature. This bill, AB 1305 (Huber), would alter the valuation limits for a small estate affidavit. According to an Assembly floor analysis this bill:
“1. Increases, from $100,000 to $150,000, the maximum value of a decedent's estate for which an affidavit or declaration to collect decedent's personal property outside the formal probate process may be used.
2. Increases, from $100,000 to $150,000, the maximum value of a decedent's estate, for which a simplified petition to collect an interest in real property outside the formal probate process may be used.
3. Increases, from $20,000 to $50,000, the maximum value of all real property in decedent's estate, for which an affidavit to transfer decedent's interest in real property may be used outside the formal probate process.
4. Increases, from $5,000 to $15,000, the amount of salary or other compensation owed to the deceased spouse by an employer that a surviving spouse can collect outside of the formal probate process, and eliminates the cost-of-living adjustment. Exempts from decedent's estate up to $15,000 of the deceased spouse's salary or compensation owed by the employer.”
For reference, the existing small estate affidavit law, as summarized by an Assembly floor analysis, is as follows:
“1. Allows for the use of an affidavit or declaration to collect decedent's personal property outside of formal probate, where the gross value of decedent's real and personal property, unless exempt, does not exceed $100,000.
2. Allows for use of a simplified petition to collect decedent's interest in real property, where the gross value of decedent's real and personal property, unless exempt, does not exceed $100,000.
3. Allows for use of an affidavit to collect decedent's interest in real property, where the gross value of all real property owned by the decedent in California, unless exempt, does not exceed $20,000.
4. Excludes certain property from inclusion in the decedent's estate for purposes of determining the value of the estate, including property held in a revocable trust and up to $5,000 of salary or other compensation owed to the deceased spouse by his or her employer.
5. Allows a surviving spouse to collect, outside of formal probate, salary or other compensation owed to the deceased spouse by an employer, in an amount not to exceed $5,000, subject to a cost-of-living adjustment."
The Trusts and Estates Section of the State Bar of California is in favor of this bill since the last time the small estate affidavit valuation threshold was raised was 1996, whereby the law, in the State Bar’s eyes, needs to be amended to reflect the rise in inflation since then. It is likely that this bill will pass the California legislature as it has unanimously passed each vote for passage. If this is ultimately the case, the signature of Governor Brown would be the only remaining hurdle before this bill becomes law.
