DOES A SMALL ESTATE REQUIRE PROBATE?

When an individual or couple works with a trust and estate planning attorney, they can plan for ways to avoid probate, creditors, plan for long-term care, and etc. However, what happens when an estate is small? Does the question become whether you can still avoid creditors? The answer is yes and no. 

Whether an estate is considered “small,” will depend on how the estate is worth. An estate is comprised of real property, personal property (such as furniture, cars, jewelry, collectibles, etc.), bank accounts, investments, retirement accounts, and debts owed by the individual who passed away, also called a decedent. If the value of the estate is worth $24,000 or less, then it would be considered a small estate. Keep in mind though that if any accounts have beneficiary designations, those accounts completely avoid probate altogether. 

If an estate has $24,000 or less in value for the estate at the date of death of the decedent and there are no beneficiary designations then in order to access those accounts, a surviving spouse or heir can file a Petition for Assignment with the probate court in the county the decedent resided in. The Petition for Assignment must list all assets and subtract any debts or liens. An example is if the decedent owned a car at death, you would look up the value for the car and subtract any lien on the car to determine its value. The Petition must also list the funeral and burial expenses. If the expenses were paid, you must provide evidence. If the funeral and burial expenses were not paid, then the court will order those to be paid prior to any assets being distributed to a surviving spouse or heir. There is a filing fee when submitting a Petition for Assignment along with an inventory fee, which is a percentage paid to the court based on the value of the estate. If the estate was worth $24,000 the inventory fee owed to the court would be $139 as an example. 

A small estate can typically be handled by a surviving spouse or heir without needing to retain an attorney. However, if there are complications, creditors, issues with transferring assets, or etc, consulting with an estate planning will trust attorney in grand rapids mi would be highly beneficial. At the Law Office of Sean Patrick Cox, PLLC, our attorneys proudly serve West Michigan families in assisting with these types of estate issues. 

We offer free consultations. To get in touch with a top Grand Rapids estate planning attorney call (616) 942-6404