A Brief Guide On California Inheritance Law A Brief Guide On California Inheritance Law

Moreover, the heart-wrenching situation sometimes becomes unclear as to how the assets of the deceased should be distributed. In addition, one might get baffled in the process as each state has different laws linked to asset distribution. Similarly, inheritance tax law in California works in its framed guidelines which the residents should be familiar with. 

Here are some of the most learning elements we cover in this handy guide! 

How does California Inheritance Work?

In California, the inheritance of assets after the owner’s death is based on two key factors:

➤Community Property (CA)

During a marriage, partners share their assets & income equally. However, on request, both spouses can demand to consider their assets as separate property. If not specified, the assets are considered community property, no matter if the ownership of assets is under one spouse. In case of death of one spouse, the surviving spouse, regardless of any legal arrangements such as wills, contracts, or prior transfers, will become 100 percent of the sole heir. 

➤Probate Assets

Many people have asked- is there an inheritance tax in California for the legal transfer of deceased assets? Here, you will get an answer! In probate assets, legal transferring of the assets is processed to the rightful heirs. It’s totally opposite to community property as there is no deceased asset transfer by statute. Whereas, in probate assets, an automatic transfer is strictly restricted. Probate is further divided into two types such as- testamentary and intestate. 

Keep scrolling to learn about them.

Two Types of Probate

➤Testamentary

Testamentary probate makes the legal process a bit easy & quick. Why? It’s because the deceased has a valid will admitted into court. Undoubtedly, the owner has the right to choose who inherits after his/her death. 

➤Intestate

When an owner dies without a will, then intestate probate comes into the picture. Now here, the state law determines who inherits assets. Below you find an outline of the California Intestate Succession Law: 

1. Spouse and one child: 1/2 of separate property of spouse and 1/2 for one child 

2. Spouse and 2 or more children: Spouse will get 1/3 of separate property , children, will share 2/3 of inherits

3. Spouse, no children, and surviving parents: 1/2 of separate property in the hands of spouse, parents other 1/2

4. Only Spouse (no children, siblings, parents & grandparents): 100 percent of separate property

5. Children: Inherit 100 percent of all property if no spouse

6. Parents: Inherit 100 percent if no spouse and no children

7. Siblings: Inherit 100 percent  if no spouse, no children, and no parents

Bottom line

Certainly, transferring deceased assets is very challenging and emotional. However, it’s essential to follow the legal procedure mentioned under California Inheritance Law to transfer assets to the right heir(s).