California Notice of Proposed Action Form DE-165 Instructions

INTRODUCTION

Suppose your deceased family member owned real property that will be part of their estate, and the property was not protected in a living trust. In that case, the property will go through California’s probate process. Click here for an overview of the process. Probate is “The judicial process in which an instrument purporting to be the will of a deceased person is proven to be genuine or not; lawful distribution of the decedent’s estate.”

It can take a year or more. 

Before the decedent’s property can be touched, an appointment to meet with the court and a petition to start probate are necessary. Then, a notice of the Court hearing must be published in the newspaper. The court’s hearing date may take several weeks. After two to three months (!) and after the letters issued by the court ordering probate, delineating duties and liabilities, and issuing the bond are complete, the beneficiaries can begin to work with a probate agent/broker who will help them market the property, determine the list price, and execute a listing agreement.

The Notice of Proposed Action

Months have passed since the family member has died. A probate purchase agreement can be created, and finally, the Notice of Proposed Action can be started. The Notice of Proposed Action must be filed using California Form DE-165, which allows the beneficiaries to either consent or object to the action stated on the form. 

Here’s what it does: A Notice of Proposed Action gives notification to all beneficiaries that the executor or personal representative is going to take some actions (including, but not limited to):

• The sale of a house

• A compromise on a claim

• The purchase of an asset

By filing Form DE-165, the executor or personal representative warns all parties of their proposed action ahead of time, preventing the possibility of a future lawsuit because the interested parties will have legally given permission for the action or not before it is taken.

Form DE-165 is a protective, defensive move that should always be included. 

DETAILS of Form DE-165

Overview

You can find Form DE-165 here. Familiarize yourself with the form and ask for help in filling in the blanks. Incorrectly filing a form adds time and frustration to a process already over-full of both.

How to Complete Form DE-165

TOP SECTION

ATTORNEY OR PARTY WITHOUT ATTORNEY (Name, state bar number, and address):

First, the attorney for the personal representative fills in their name and information—or if the personal representative is representing themselves—they would fill in their name, information, and note “proper” after their name.

ATTORNEY FOR (NAME):

This will be the personal representative or executor’s name.

SUPERIOR COURT OF CALIFORNIA, COUNTY OF:

Fill in the county where the specified probate is pending. If you need to find the address and branch name, you can visit the court’s website to find this information. You may leave that portion blank if you cannot locate the information on the website.

ESTATE OF (NAME):

Fill in the name of the estate that you are representing. 

CASE NUMBER:

Fill in the correct case number. This can be obtained from the Clerk of the Court’s Probate Division if it is not on the paperwork you have in your possession.

NOTICE OF PROPOSED ACTION:

Leave this portion blank; there should be no objection or consent yet. You may move on to the next part:

NUMBERED SECTIONS

1. Fill in the name of the personal representative of the deceased’s estate.

2. Indicate whether the personal representative has the authority to administer the estate without court supervision under the Independent Administration of Estates Act, then check either full authority or limited authority. You will know which one it is by verifying the Letters of Administration. 

3. This section is for options that don’t have to do with a real property transaction. By filling in the date, you will be informing all beneficiaries that the personal representative is going to take a certain action then. You may either describe the action in the box provided or add an attachment labeled “Attachment 3.”

4. Real Property Transaction:

You will check the box in this section If it is a real property transaction.

1. 1. From number 3, you will have to describe the terms of the transactions, as directed.

   2. List the value of the property. This would be the value at which the property was appraised. If it has not been appraised, check off “No inventory yet.”

   3. NOTE: It is best to have the property appraised first so you, as a personal representative, can prove you are listing the property at a fair price.

5. If you or the person objects to the proposed action:

1. 1. You/they indicate the name and address of the personal representative that the objection should be sent to, or

   2.  

      Send your own written objection.

   3.  

      Apply to the court for an order preventing the personal representative from taking the proposed action without court supervision.

       

   4. NOTE: Your written objection must be received by the personal representative before the date in the box on Item 3 or before the proposed action is taken, whichever is later.

6. If you APPROVE the proposed action, you may sign the consent form and return it to the address in item 5a. If you do not object in writing you will be treated as if you consented to the proposed action.

7. The personal representative or the attorney for the personal representative will ultimately sign the form. You may also specify, under number 7, the name and telephone number that other beneficiaries should call to get more information. 

These forms are beneficial for personal representatives. It will give the beneficiaries full disclosure of the personal representative's actions. It also allows the beneficiaries to voice their objection or consent to that action before the action is taken. 

If you have any questions on Form DE-165, or anything else relating to probate in California, you are welcome to contact The CREM Group here. As experts in the field of probate and trust properties in California and as an attorney-owned brokerage firm with an excellent track record, they can answer many questions and help ease the probate process as much as possible.

Disclaimer: This content is meant purely for educational purposes. It contains only general information about real estate and legal matters. It is NOT legal advice and should not be treated as such. We recommend consulting a legal or tax professional before acting on any material, opinion, or point of view described herein.