Transferring Real Estate Worth Less than $61,500
Whenever real estate is owned by the decedent, there must be some type of procedure to transfer the real estate to the heirs. Fortunately, there is an easier and faster procedure to transfer the real estate to the heirs when the real estate is worth less than $61,500 (or $55,425 for persons passing away before April 1, 2022). This probate procedure can be used six months after death by all the heirs of the decedent, whether it’s the surviving spouse, children, grandchildren, parents, etc.
Probate Code §13200, et seq. allows for the transfer of the real estate to the heirs by an affidavit so long as all the real estate owned by the decedent is valued at less than $61,500 (or $55,425 for persons passing away before April 1, 2022).
The first step, as required by Revenue & Taxation Code § 480(b), is to file a Change of Ownership Statement – Death of Real Property Owner (Form BOE 502-D) with the county assessor in the county in which the decedent owned real estate for each parcel of real estate.
The next step is to send an Inventory and Appraisal (Form DE-160 and DE-161) to the probate referee to appraise the real estate as of the date of death.
So long as the real estate is valued at less than $$61,500 (or $55,425 for persons passing away before April 1, 2022) by the probate referee and at least six months have passed since the date of death, the heirs can file an Affidavit Re Real Property of Small Value (Form DE-305) with the probate court in either the county where the decedent lived or where the real estate is located. A certified copy of the death certificate must be attached, as well as the will, if any. The affidavit is signed by all the heirs and acknowledged before a notary public. When filed with the court, the court clerk will certify the affidavit and no court hearing is required.
The certified affidavit must then be recorded with the county recorder in the county where the real estate is located, along with a preliminary change of ownership report as required by Revenue & Taxation Code §480.3. The property is then transferred in the name of all the heirs.
If applicable under Revenue & Taxation Code §63.1, a Parent-Child Exclusion (Form BOE-58-AH) or Grandparent-Grandchild Exclusion (Form BOE-58-G) can be filed with the county assessor to exclude the transfer of the real estate from reassessment for property tax purposes.
