California Inheritance Law: What You Need to Know
California inheritance law governs how property is distributed when someone dies in the state. This article provides an overview of key details, provisions, recent changes, controversies, and frequently asked questions about California inheritance law.
When Was The Law Enacted and Why
California State inheritance laws have evolved over many decades. The state’s first inheritance statutes were enacted in 1872, shortly after California became a U.S. state in 1850. The laws have been updated many times since then, most recently with the California Uniform Probate Code in 1990.
Inheritance laws exist to provide a legal framework for distributing a deceased person’s assets and property. Without structured inheritance laws, transferring assets after death would be extremely chaotic and contentious. The laws aim to balance the wishes of the deceased, rights of heirs, interests of creditors, and orderly administration of estates.
Who California Inheritance Law Applies To
California inheritance law applies to:
- California residents who die with assets in California.
- Non-residents who die with property located in California.
- Heirs inherit assets from a deceased California resident or non-resident with California property.
The law does not apply to most government benefits, life insurance proceeds, retirement accounts with designated beneficiaries, living trusts, or other assets that transfer automatically upon death outside of probate.
Key Provisions California Inheritance Law
California inheritance law has several key components:
Intestate Succession
When someone dies without a will, California intestacy law dictates who inherits their property. Generally, assets go to close relatives in the following order:
- Surviving spouse
- Children
- Grandchildren
- Parents
- Siblings
- Nieces/nephews
- Other relatives
If no heirs can be found, assets go to the state. The law also specifies inheritance percentages based on different family situations.
Community Property
California is a community property state. Most assets acquired during marriage are considered jointly owned 50/50 by each spouse. Upon death, the deceased spouse’s 50% share goes to heirs while the surviving spouse keeps their 50% share. Special rules apply to certain assets.
Wills
A legally valid will allows people to leave assets to designated beneficiaries. Requirements include:
- Signed by the testator (person making will)
- Witnessed by 2 people
- Clear instructions for distributing property
Wills must be submitted to probate court after death. The court verifies the will’s validity and oversees the executor in distributing assets.
Trusts
Revocable living trusts let people place assets into trusts while alive. The assets transfer directly to beneficiaries upon death, avoiding probate. Irrevocable trusts also exist. Trust assets do not pass through probate.
Spousal Property Petition
A surviving spouse has a right to claim community property assets that were left by will to other heirs. This helps prevent the disinheritance of a spouse.
Penalties
Penalties for violating California inheritance law include:
- Civil lawsuits from disgruntled heirs
- Criminal charges for fraud, theft, or abuse
- Fines and loss of inheritance for contesting a valid will
Executors and trustees who mismanage estates face financial penalties, removal from position, civil suits, and criminal charges.
California Inheritance Law Recent & Proposed Changes
Recent changes impacting California inheritance law include:
- 2020 Law: Doubled dollar limit for small estate affidavit procedure to transfer property without probate. Limit raised from $150,000 to $166,250.
- 2018 Law: Allowed transfer of auto-registered property without probate using a simple affidavit, up to $100,000 value.
- 2016 Law: Set out rules allowing electronic wills in California for the first time. Still being refined.
A new bill aims to ban no-contest clauses in wills and trusts that penalize heirs for merely challenging documents. It is currently under legislative review.
California Inheritance Law Controversies & Challenges
California inheritance law sees frequent controversies, including:
- Community property reform – Calls exist to update community property laws, mainly around the surviving spouse’s inability to sever joint tenancy without consent.
- Digital asset inheritance – With growing digital assets, questions remain around legal access rights for heirs. Calls for updated legislation.
- Wills from other states – Confusion often arises over which state’s laws have precedence when inheriting out-of-state assets.
- Coronavirus impacts – The pandemic led more people to create questionable homemade wills leading to disputes over validity.
- Pet trusts – Providing for pets after an owner’s death remains complex despite California allowing pet trusts.
Frequently Asked Questions on California Inheritance Law
Conclusion
Distributing property after someone dies involves complex legal issues. California inheritance law brings order to asset transfers upon death through statutes on wills, trusts, intestate succession, spousal rights, community property, probate court procedures, and more. Rules continue evolving to address changing family structures and the emergence of digital assets. Understanding the key provisions, recent changes, and common disputes around California inheritance law helps ensure your estate plan aligns with state laws.
