A recent California bill, AB 2245, is effective for actions for the partition of real property filed on or after Jan.1, 2023. The bill could potentially impact the rights of an undivided interest holder in California, thereby impacting the fair market value of an interest. This change is significant for understanding the rights of the undivided interest holder as well its implications for potential estate planning.

Carsten Hoffmann, a managing director at investment bank and advisory firm Stout, and Eric Bardwell, an estate planning partner at Jeffer Mangels Butler & Mitchell, discuss the key aspects of this legislation.