Understanding Probate in California: What Real EstateProfessionals Need to Know

When someone passes away, their assets don’t automatically transfer to loved ones. That’s  where probate comes in.  

Probate is the legal process required to settle a deceased person’s estate, which includes  transferring or inheriting property. Whether or not a case must go through probate depends  on the type and value of the assets involved. All assets solely owned by the decedent are  considered part of their estate.  

Even if a valid will exists, probate may still be necessary. Once a will is located, it must be  submitted to the court. The probate process begins when someone—usually a family  member or beneficiary—files a petition with the court to open a case and requests the  appointment of a personal representative (known as an executor if named in the will, or an  administrator if not).  

This personal representative is responsible for managing the estate throughout the  process, which typically includes:  

• Gathering and securing all estate assets  

• Paying off outstanding debts, taxes, and other obligations 

• Distributing remaining assets to rightful heirs or beneficiaries  

Why This Matters in Real Estate  

Understanding probate is especially important for real estate professionals. Inherited  property sales often depend on court timelines and approvals, which can significantly  impact how and when a home can be sold.  

California’s Probate Thresholds (As of 2025)  

Not all estates in California require formal probate. If the gross value of the estate is under: 

• $166,250 (for deaths before April 1, 2022)  

• $184,500 (for deaths on or after April 1, 2022) 

—and the person has a legal right to inherit—the estate may qualify for a simplified  process. However, in most cases involving real estate, especially in high-value markets like  the Bay Area, families typically must go through full probate.  

This knowledge empowers agents and clients alike to navigate inherited property sales with  realistic expectations and informed decisions.  

The Three Main Parts of the Probate Process  

1. Opening the Probate Case  

The first step is to formally open the probate case in court. The person who initiates the  process is known as the petitioner. This step includes:  

• Filing a Petition for Probate 

• Paying the required court filing fees 

• Receiving a scheduled court hearing date 

• Notifying all heirs, beneficiaries, and interested parties of the hearing 

• Publishing a legal notice in a newspaper in the county where the decedent lived  

At the court hearing, the judge will determine whether to appoint a personal representative  to manage the estate.  

2. Administering the Estate  

Once appointed, the personal representative assumes legal responsibility for managing the  estate. This phase includes:  

• Inventorying and appraising all assets 

• Notifying known creditors of the probate case  

• Receiving Letters of Administration or Letters Testamentary, which legally  authorize the representative to act on behalf of the estate  

• Paying debts and taxes from the estate  

• Providing regular updates and reports to the court  

For real estate professionals, this is typically when the representative is authorized to list  and sell property owned by the estate.  

3. Closing the Estate 

Once all financial matters are settled, the estate can be oƯicially closed. The final phase  involves:  

• Filing a Final Report, Accounting, and Petition for Final Distribution (Note: If all heirs sign waivers, a full accounting may be waived)  

• Scheduling a final hearing to present the report to a judge  

• Providing legal notice of the hearing (must be done by a neutral third party)  

If the judge approves the report and final distribution, the assets are transferred to the  rightful heirs, and the probate case is oƯicially closed.