Six California Estate Law Changes to Know in 2026

California estate law just went through its biggest shakeup in over a decade. If your trust, will, or property tax plan was built on the old rules, parts of it may already be out of date. Here is what changed, in plain English, and what it means for you and the people you love.

Smaller Estates Can Skip Probate More Often Now

California raised its small estate limit to $208,850 for deaths on or after April 1, 2025, under California Probate Code sections 13100 through 13106. Bank accounts, investment accounts, and other personal property at or below that value can pass to heirs with a simple affidavit and no court case. The old limit was $184,500. For unmarried partners and chosen family, this wider door matters. (Nolo)

A Faster Court Process for the Family Home

Assembly Bill 2016 created a streamlined petition, at California Probate Code section 13151, letting a primary residence worth up to $750,000 transfer to heirs without a full probate. There are strings attached: the home must have been the decedent’s main residence, a court referee sets the value, and whoever uses the petition becomes personally responsible for the decedent’s unsecured debts. A funded living trust is still the gold standard. (Sacramento County Public Law Library)

Medi-Cal Asset Limits are Back in California

From 2024 through 2025, California had no asset test for its Medi-Cal program at all. On January 1, 2026, the test returned: $130,000 in countable assets for an individual, plus $65,000 for each additional household member. A 30-month look-back on asset transfers also applies to nursing facility coverage. Do not move assets to get under the limit without advice. Transfers made now can trigger a penalty period that delays coverage. (National Health Law Program)

The Federal Estate Tax Exemption is Now $15 million, Permanently

Congress made the higher exemption permanent rather than letting it fall at the end of 2025. In 2026, each person can transfer up to $15 million free of federal estate and gift tax, and $30 million for a married couple using portability, with inflation adjustments resuming in 2027. The annual gift exclusion stays at $19,000 per recipient. Very few estates will owe federal estate tax now, so attention shifts to income tax basis and making sure old documents still do what you intended. (IRS; Kiplinger)

Prop 19’s Exclusion For the Family Home

Proposition 19 still lets a parent transfer the family home to a child without a full property tax reassessment, within tight limits. The child must make it their primary home within one year, and only the first $1,044,586 of appreciation above the assessed value is excluded for transfers between February 16, 2025 and February 15, 2027. Anything above that gets reassessed. The same rules apply when the home goes to a same sex spouse’s or unmarried partner’s children. (California State Board of Equalization)

A New Way to Name Backup Caregivers for Your Children

The Family Preparedness Plan Act was signed in October 2025 and took effect January 1, 2026. It lets more relatives sign a caregiver’s authorization affidavit for school enrollment or medical care, and lets parents nominate a temporary guardian in advance. For LGBTQ+ parents, unmarried partners, and chosen family networks where not every caregiver has a formal legal tie to the child, this is a practical tool worth knowing about. (Community Bridges; BillTrack50)

What to Do About It

Have any plan written before 2025 reviewed. The numbers underneath it have moved.
Fund your trust. Shortcuts help, but a funded revocable living trust still avoids probate entirely.
Do not shuffle assets for Medi-Cal without legal advice. The lookback period is back.
If you are 55 or older, Prop 19 still lets you carry your property tax base to a replacement home up to three times, anywhere in California.

None of this is do-it-yourself territory, but all of it is worth knowing about. A short review now can prevent an expensive surprise later.

If any of these changes touch your family, let’s talk. Contact Kushner Legal at 310 279 5166 to schedule a plan review.

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