Section 2502 Of Article 5. Compromise Of Claims And Actions; Extension, Renewal, Or Modification Of Obligations From California Probate Code >> Division 4. >> Part 4. >> Chapter 6. >> Article 5.

. Court approval is required for a compromise or settlement of a matter when the transaction requires the transfer or encumbrance of property of the estate, or the creation of an unsecured liability of the estate, or both, in an amount or value in excess of twenty-five thousand dollars ($25,000).