How to Administer a Small Probate Estate

State laws in the jurisdiction where the decedent died govern the laws to be applied in probate court. Specific title transfer issues are governed by the laws of the state where the estate property is located. A notice to creditors will be required to ensure that creditors are paid before distributing the net proceeds of the estate. The size of an estate allowed to be transferred without formal probate is regulated by state statutes. A responsible party can petition to administer an estate. There will be some court costs. Maximum administrator/executor’s fees allowed are limited by statute. One method of avoiding probate is creation of a “Totten trust,” which refers generally to joint bank accounts which, upon death of one of the account holders, pass directly to the remaining account holders. Few estates today are subject to existing inheritance tax laws. Here are the steps needed in order to administer small probate estates.

Things You'll Need

• Notice to creditors/publication fees, if any
• Identification
• Affidavit of death of joint tenant
• Court fees
• Court forms
• Bank account records
• Car, plane and/or boat title(s)
• Securities (e.g., stock, bonds, mutual funds)
• Death certificate
• Life insurance policies and annuities
• Tax reporting/tax forms
• Inheritance taxes, if any
• Executor and/or attorney fees
• Social Security Administration (SSA) forms

Instructions

1. Obtain a certified copy of the death certificate for the decedent. There will be a fee for this service.

2. Inventory all property constituting the corpus of the estate. Total the entire net value of the estate after paying all creditors. This amount must be less your state’s threshold limit in order to qualify for the small estate exemption.

3. File any required court forms in order to administer the small estate. Each state has laws relating to distribution and transfers of small estates. You should file and publish a notice to creditors in a newspaper of general circulation for the proscribed time.

4. Transfer ownership of specific items in the estate to yourself. For real property, this can be accomplished by recording an affidavit of death of joint tenant with a copy of the death certificate at your county recorder’s office. There may be fees to pay. For security, automobile, boat or airplane ownership transfers you should contact the appropriate agencies or companies to record the affidavit of death of joint owner (along with copies of the death certificate). For retirement benefits, life insurance policies and annuities, whoever is listed as a beneficiary on the policies is entitled to receive any payment directly. These proceeds are not included in valuing the estate.

5. File a notice of death with the SSA. You will receive a small payment that can be applied towards burial or cremation expenses (see Resources below).

Tips & Warnings

• Contact the decedent’s former employer in order to collect any final paychecks.

• Ensure that the estate pays all existing creditors. Failure to do so may subject you to personal liability for unpaid debts.

Resources

• Social Security Administration (SSA)