CA Inheritance Guide: Non-Residents

Quick answer: Out-of-state heirs and beneficiaries inherit from a California estate under the same substantive rules as California residents. California has no inheritance tax and no estate tax at the state level. What changes for out-of-state inheritors is the logistics: signing documents remotely, receiving legal notices across state lines, and — if you’re named executor — possibly needing a California-based agent to accept service of process on your behalf. If a non-California resident dies owning real property here, the family also faces a separate California probate proceeding called ancillary probate.

Picture this: your aunt in Michigan gets a call that her brother — a lifelong Ventura County homeowner — passed away last month. She’s named in the will. Now what? She doesn’t need to move to California. She doesn’t owe California any inheritance tax. But she does need to deal with California’s probate court, California’s property tax rules, and a stack of paperwork that won’t sign itself from 2,000 miles away.

This post explains what out-of-state heirs and beneficiaries actually face when they inherit from a California estate — and what families can do before death to make it easier.

The Basic Rule: Where You Live Does Not Change What You Inherit

California probate law does not draw a distinction between heirs (people who inherit under state law when there’s no will) or beneficiaries (people named in a will or trust) based on where they live. A daughter in Texas has the same legal right to her California parent’s estate as a daughter in Oxnard. The probate court distributes assets according to the will or, if there is none, California’s intestate succession statutes — not according to the beneficiary’s zip code.

What your residence does affect is the paperwork and practical friction of getting through the process.

California Has No Inheritance Tax and No State Estate Tax

This surprises many people. California repealed its state estate tax in 1982, and the state has never enacted a separate inheritance tax. The California Franchise Tax Board confirms that inherited assets are not taxable income to the recipient at the state level. If the inherited property later generates income — rent from a house, dividends from a brokerage account — that income is taxable. But the inheritance itself is not.

Federal estate tax is a different story. As of 2026, the federal exemption is $15 million per individual (increased by the One Big Beautiful Bill Act). Estates under that threshold owe no federal estate tax either. Most California families won’t clear that bar. If a large estate does cross it, the tax is paid by the estate itself before assets are distributed — not by the heirs out of their own pockets.

Probate: When It’s Required and What Out-of-State Heirs Face

California probate is the court-supervised process for transferring assets after death. As of April 1, 2025, formal probate is generally required when the gross estate — all assets, not just what passes through the will — exceeds $208,850 in personal property, or when real estate in California doesn’t pass through a trust or joint tenancy. Those thresholds are adjusted every three years by the Judicial Council. (Source: California Courts, Probate Code 890 adjusted amounts.)

For out-of-state heirs, probate creates several practical complications.

Receiving Notice of Proceedings

California law requires the executor (called the personal representative — the person appointed by the court to manage and distribute the estate) to give written notice of probate proceedings to all heirs and beneficiaries. If you live in another state, that notice comes to you by mail. You can participate in a California probate proceeding without ever physically appearing in the state. Many hearings can be handled by the attorney of record. If you’re represented by a California probate attorney, you typically don’t need to fly out for routine court dates.

Signing Documents Remotely

Most probate paperwork can be signed and returned by mail or — in many cases — via remote online notarization. California enacted remote notarization rules that make this easier than it used to be. You’ll still need to sign a fair amount of paperwork: consents, waivers, receipts for distributions, and possibly a deed if you’re receiving real property. Your attorney can walk you through each document and tell you which require notarization.

When You Are Named Executor (Personal Representative)

Being named executor in a will does not disqualify you if you live outside California. California Probate Code section 8402 allows a non-California resident to serve as personal representative. However, there’s a practical requirement: a non-resident personal representative must file a written designation of a California resident — or a California attorney — as the agent for service of process. This means if someone needs to formally serve legal papers on the estate, they have a California address to use. Your probate attorney typically handles this formality when filing the petition for probate.

Some families prefer to name a California-based family member, friend, or professional as co-executor precisely to avoid this friction. It’s worth discussing with an estate planning attorney before the will is signed.

Ancillary Probate: When a Non-California Resident Dies Owning California Property

Ancillary probate is a separate California court proceeding that becomes necessary when someone who lived — and died — outside California owned real property here. The decedent’s home state handles the main probate. California handles the California real estate through ancillary administration.

Say a retired couple moves from Ventura County to Nevada, but they kept a rental house in Camarillo. When one spouse dies, Nevada probate handles their Nevada assets. But the Camarillo house requires a California ancillary probate proceeding, filed in the California county where the property sits.

Ancillary probate follows essentially the same process as a standard California probate, just scoped to the California assets. A California attorney files the petition, the court appoints a personal representative for California purposes, creditors are notified, and the property is eventually transferred to whoever inherits it. The process adds time and cost — typically several months and a few thousand dollars in attorney fees and court costs, depending on the property’s value.

The best way to avoid ancillary probate is to hold California real estate in a revocable living trust. When the property is titled in the trust’s name, it transfers to the successor trustee on death without court involvement — no ancillary proceeding, no California probate at all. If you or a family member owns California property but lives elsewhere, this is one of the clearest reasons to fund a living trust. Ridley Law handles trust administration and can also help with the underlying estate planning to prevent ancillary probate before it becomes someone’s problem.

Proposition 19 and Property Taxes for Inherited Real Estate

This is where out-of-state heirs often get blindsided. California’s Proposition 19 — passed by voters in November 2020 and effective February 16, 2021 — significantly narrowed the parent-child property tax exclusion that used to let children inherit a parent’s low assessed value.

Under Prop 19, a child who inherits a California home can keep the parent’s lower property tax assessment only if the child moves into the home as their primary residence within one year of the parent’s death. If the child lives in another state and uses the home as a rental or vacation property, the property is reassessed at current market value — which in many parts of Southern California means a dramatically higher annual tax bill.

The California Board of Equalization administers these rules. (Source: boe.ca.gov/prop19.) There is no exception for out-of-state heirs — the move-in requirement is the same regardless of where the child currently lives. An heir who wants to keep the lower assessed value has to actually move to California and make the property their principal residence.

Families planning ahead sometimes use trusts structured before Prop 19’s effective date, or they explore whether the property is worth keeping at the reassessed tax rate versus selling. An estate planning attorney can model both scenarios before the parent’s death. After death, the options narrow considerably.

Income from Inherited California Property

If you inherit California real property — a house, a rental unit, commercial space — and you hold onto it, any rental income or capital gains from a later sale are subject to California income tax, even if you live in another state. California taxes income generated from California sources regardless of the taxpayer’s residence.

This is separate from the inheritance itself (which, again, is not taxed). It’s the ongoing income from the property that creates a California tax filing obligation for an out-of-state owner. If you sell inherited California real estate, you’ll owe California capital gains tax on any appreciation above your stepped-up cost basis. Your tax preparer and a California estate attorney should coordinate on this before you decide whether to keep or sell an inherited California property.

Trust Administration vs. Probate for Out-of-State Heirs

If the deceased had a properly funded revocable living trust — meaning California real estate and other assets were titled in the trust’s name, not just left in the person’s individual name — the estate generally avoids probate entirely. The successor trustee (the person designated to manage the trust after the original trustee dies) can transfer assets to beneficiaries without court supervision.

For out-of-state heirs, this is usually much faster and cheaper than probate. Trust administration still involves paperwork — the successor trustee must notify beneficiaries, pay debts, file a final income tax return, and prepare accountings — but it happens on a shorter timeline and without court hearings. Ridley Law regularly helps successor trustees and beneficiaries work through trust administration, including situations where heirs are scattered across multiple states.

If your California relative had a trust but didn’t properly fund it (meaning they bought property in their own name rather than the trust’s name after signing the trust document), that property may still end up in probate. A pour-over will can catch those assets and redirect them into the trust through probate, but it doesn’t avoid the probate step. Proper trust funding — actually retitling assets into the trust — is the piece that prevents problems for out-of-state heirs later.

What Out-of-State Heirs Should Do Right Now

If you’re an out-of-state heir dealing with a California estate that just opened, a few practical steps help move things forward.

First, gather whatever documents exist: the will, any trust documents, account statements, and deeds to California real property. The personal representative or trustee will need these to open the estate or begin trust administration.

Second, get clear on whether the estate will go through probate or trust administration. That determines your timeline, your role, and what to expect in terms of paperwork and court involvement.

Third, understand that you don’t need to be physically present in California for most of the process. A good California probate attorney handles the court filings and can communicate with you remotely. You’ll receive copies of everything by mail or email.

Finally, if you’re a California resident with family in other states who would inherit from you, this is the right time to review your own estate plan. A well-drafted, properly funded revocable living trust is the most effective way to spare your out-of-state heirs from California probate.

Ridley Law has helped Ventura County families with estate planning and probate since 2010. If you have questions about an estate you’re inheriting — or want to set up a plan that protects your own family — call (805) 244-5291 for a free initial consultation.

Frequently Asked Questions

Do out-of-state heirs inherit less than California residents?

No. California probate and trust law distributes assets based on the will, the trust, or the state’s intestate succession rules — not the beneficiary’s state of residence. An heir in Ohio receives exactly what the estate documents say they receive, the same as an heir in Oxnard.

Does California tax the inheritance itself?

No. California has no inheritance tax and no state estate tax. The California Franchise Tax Board confirms that inherited money and property are not taxable income to the recipient. If you later sell inherited real estate at a gain, or collect rent from it, that income is taxable — but the inheritance itself is not.

Does a non-California resident have to travel to California for probate hearings?

Usually not. Routine California probate hearings are handled by the estate’s attorney, who appears on behalf of all interested parties. As a beneficiary or heir, you typically don’t attend court personally. If you’re serving as personal representative (executor), some hearings may require your attorney to appear on your behalf with a written authorization. Remote participation options exist in many California counties. Your California probate attorney can tell you whether any personal appearance is required in your specific case.

What is ancillary probate and when does it apply to my family?

Ancillary probate is a California court proceeding required when someone who lived — and died — outside California owned real property here. The out-of-state estate is handled in the decedent’s home state; California requires its own separate proceeding to transfer the California real estate. Ancillary probate adds time and cost but is unavoidable once the property owner has died without a trust. Families can prevent it by placing California real estate in a revocable living trust while the owner is still alive.