Avoiding Probate with a Small Estate Affidavit
Losing a loved one is never easy, and the process of settling their affairs can be overwhelming. Thankfully, there's a simplified alternative for those dealing with smaller estates in Michigan: the “Affidavit of Decedent’s Successor for Delivery of Certain Assets Owned by Decedent” otherwise known as a Small Estate Affidavit. In this post, the Michigan probate attorneys at Thompson Legal will explain what a Small Estate Affidavit is, how it works, and when it might be the right choice for you.
Please note that this post is not exhaustive, and every situation is unique. In the event that you have questions about your specific case, it’s advisable to speak with an attorney. Contact Thompson Legal to schedule a discovery call with a Michigan probate lawyer.
What is a Small Estate Affidavit?
A Small Estate Affidavit is a legal document designed to expedite the probate process for estates that meet certain criteria. In essence, it provides a streamlined approach for settling the estate of a deceased person without the need for a full probate court proceeding. This can be a relief for those dealing with relatively modest estates, as it saves time, money, and reduces administrative oversight.
Criteria for Using a Small Estate Affidavit
Not every estate qualifies for a Small Estate Affidavit. Generally, to be eligible, the estate must meet the following criteria:
Size: The value of the estate's assets, less any liens and encumbrances, cannot exceed $15,000.00. Please note this value adjusts for the cost of living as provided in MCL 700.1210.
No Formal Probate Proceedings: A Small Estate Affidavit can only be used if there are no probate proceedings for the estate.
No Real Property: Michigan’s Small Estate Affidavit form expressly excludes its use in cases where real property is an estate asset.
Timing: A Small Estate Affidavit form also requires that more than 28 days have passed since the Decedent’s death.
The Process of Using a Small Estate Affidavit
If your situation meets the necessary criteria, you can follow these general steps to use a Small Estate Affidavit:
Gather Information: You'll need to collect essential information about the deceased person, their assets, and their debts. This typically includes their will, a copy of their death certificate, and the names and contact information of heirs or beneficiaries.
Draft the Affidavit: Using the form provided by the State of Michigan, or seeking legal assistance if needed, you'll draft the Small Estate Affidavit. This document will require your signature be notarized.
Execute the Affidavit: Once finalized, you’ll need to take your Small Estate Affidavit and accompanying documents to the appropriate financial institution.
Distribute Assets: Once the organization approves the affidavit, you can proceed with the distribution of assets to heirs or beneficiaries as outlined in the affidavit.
Benefits of Using a Small Estate Affidavit
There are several advantages to using a Small Estate Affidavit for settling a small probate estate:
Time and Cost Savings: A Small Estate Affidavit can save you significant time and money compared to a traditional probate proceeding, which often involves attorney's fees, court costs, and lengthy delays.
Simplified Process: The process is relatively straightforward and doesn't require the same level of court oversight and paperwork as a formal probate proceeding.
Privacy: Given these documents are only between yourself and the Decedent’s financial institution, they are not available to the public, offering more privacy for the family.
Avoiding Legal Disputes: Since it's designed for uncontested estates, a Small Estate Affidavit can help you avoid potential legal disputes and conflicts.
A link to Michigan’s current Small Estate Affidavit can be found at pc598.pmd (michigan.gov)
Conclusion
The probate process can be complicated, but for those dealing with small estates, a Small Estate Affidavit offers a simpler and cost-effective alternative. It is important to understand the specific criteria and procedures required by Michigan law and, when in doubt, seek legal guidance to ensure that you're taking the right steps to settle your loved one's affairs efficiently and with as little stress as possible. Contact Thompson Legal to consult with a Michigan probate attorney about the specifics of your case.
This blog is for informational purposes only. It is not intended as legal advice. In the event you would like to speak with a probate lawyer about your case Contact Us at (734) 743-1646 to schedule a consultation.
