After someone passes away, distributing their property is not always easy. The person may have died without a will, there may be multiple versions of a will, relatives may dispute the inheritance, or the decedent may owe money to creditors.
These complications can cause delays in receiving your funds as an heir. If you need the money sooner, what can you do? Probate funding through Rockpoint Probate Funding gives you cash while your probate case is pending.
Before deciding your next steps, it’s important to understand how California probate law works.
What Is Probate?
Probate is the legal process of reviewing a deceased person’s property and determining heirs. Wills must go through probate to ensure their authenticity and validity. Probate proceedings also help divide property when someone dies without a will (intestate succession).
After reviewing the decedent’s assets, a probate court will make a final decision on how to distribute them to beneficiaries. Probate laws and timelines vary by state, but the process can be cumbersome and costly. However, every state provides some ways to avoid probate.
Does California Require Probate?
California requires probate in the majority of cases, but not all. Whether or not you must go through probate court depends on the estate value, asset types, and ownership type.
California has recently passed California Assembly Bill 2016 which introduces significant changes to the probate process for small estates, and will take effect in April 2025. These amendments focus on raising the threshold for estates that can bypass formal probate, from $166,250 to $750,000, and modifying the eligibility criteria for using simplified estate procedures. Of note in this new law, only real property that was the decedent’s primary residence can qualify for the small estate exemption if the gross value does not exceed $750,000.
Certain asset types do not require probate because the title transfers automatically to the beneficiary. Examples include the following:
- Jointly owned property
- Community property
- Assets in a living trust
- Life insurance proceeds
- Social Security survivor benefits
- Deceased veteran dependent benefits
- Bank and retirement accounts with a named beneficiary
What Is the California Probate Process?
For estates that require formal probate, the process looks like this:
- Filing the petition: An heir files a petition and a copy of the will with the court in the deceased person’s county of residence. They should do so within 30 days of the death.
- Determining the executor: The court holds a hearing to determine the executor (also known as a personal representative). The decedent may have named an executor in their will.
- Identifying the heirs: The executor will determine the heirs and beneficiaries. This may involve looking at the terms in the will, beneficiary designations, joint property arrangements, and California probate law if there are any issues.
- Collecting the assets: The executor identifies and lists the decedent’s property, calculates the value of assets and debts, and secures assets for distribution. In some cases, they will sell real property or business interests.
- Dealing with debts: The executor must formally notify creditors using a Notice of Administration to Creditors (form DE-157) and pay valid claims from the estate before making any other distributions. They must also pay outstanding taxes and other bills.
- Closing the estate: After fulfilling their responsibilities, the executor provides a final account and requests that the estate be closed. If the probate judge is satisfied, they will discharge the executor from their duties.
How Long Does California Probate Take?
California probate will take at least four months because that’s how long creditors have to make a claim against an estate. More often, the process lasts a minimum of nine months.
California law requires personal representatives to complete probate within one year, or 18 months if they file a federal estate tax return. If someone contests the will, no will exists, the estate is particularly complex, or there is pending litigation, the process may take several years.
How Much Does California Probate Cost?
The primary costs associated with probate are executor compensation fees. According to California statutory fee schedules, the executor receives a percentage of the estate value.
- 4% of the first $100,000
- 3% of the next $100,000
- 2% of the next $800,000
- 1% of the next $9 million
- .5% of the next $15 million
For estates worth over $25 million, the court will determine the appropriate administration fees.
Other probate costs include court filing fees ($435 in 2024), legal fees if you use a probate attorney, and any extraordinary fees (for example, if there are legal disputes or complicated tax issues).
What If Someone Dies Without a Will?
Not everyone thinks about estate planning before they die. If someone dies without a will, intestate succession laws determine the beneficiaries. The court typically selects a close relative to act as the estate administrator. An administrator is similar to an executor but distributes assets according to state laws rather than the terms of a will.
Heirs cannot contest intestate succession, which means state law determines the order of priority and percentage of the estate for each heir. Assets typically go to the surviving spouse and/or children but can also go to siblings, parents, nieces and nephews, and grandchildren in certain circumstances.
Intestate succession does not apply to assets that automatically go to a surviving beneficiary upon the owner’s death, such as life insurance, retirement funds, and joint property.
Can I Collect My CA Inheritance Sooner?
All the California probate laws and steps may have you worried about when you’ll receive your inheritance. But you have options. Probate funding with Rockpoint Probate Funding allows you to access your funds while the case is still pending.
You can use these funds for whatever purpose you choose: to pay bills, invest, or even take a vacation. Unlike traditional loans, probate funding does not require a credit check or income information. Neither do you bear any risk. If you don’t receive your inheritance, you don’t have to repay the funding.
Access Your Funds Quickly With Rockpoint Probate Funding
Want your funds sooner? Rockpoint Probate Funding makes it possible. Our skilled team works quickly to evaluate your case and process your cash advance, often in as little as one day. We don’t share your information with third parties, keeping your data safe and secure.
You don’t need to wait for California probate to finish to receive your inheritance. Contact Rockpoint Probate Funding at (888) 263-8588 today.
