Small Estates General Summary: Small Estate laws were enacted in order to enable heirs to obtain property of the deceased without probate, or with shortened probate proceedings, provided certain conditions are met. Small estates can be administered with less time and cost. If the deceased had conveyed most property to a trust but there remains some property, small estate laws may also be available. Small Estate procedures may generally be used regardless of whether there was a Will. In general, the two forms of small estate procedures are recognized:
1. Small Estate Affidavit -Some States allow an affidavit to be executed by the spouse and/or heirs of the deceased and present the affidavit to the holder of property such as a bank to obtain property of the deceased. Other states require that the affidavit be filed with the Court. The main requirement before you may use an affidavit is that the value of the personal and/or real property of the estate not exceed a certain value.
2. Summary Administration -Some states allow a Summary administration. Some States recognize both the Small Estate affidavit and Summary Administration, basing the requirement of which one to use on the value of the estate. Example: If the estate value is 10,000 or less an affidavit is allowed but if the value is between 10,000 to 20,000 a summary administration is allowed.
Michigan Summary:
Under Michigan statute, where as estate
is valued at less than $15,000, an interested party may petition the court
to order that the assets of the estate be distributed to the beneficiaries.
Michigan Requirements:
Michigan requirements are set forth in the statutes below.
ESTATES AND PROTECTED INDIVIDUALS CODE (EXCERPT)
Act 386 of 1998
700.3982 Court order distributing small estates.
Sec. 3982.
(1) Upon a showing of evidence, satisfactory to the court, of payment
of the expenses for the decedent's funeral and burial and if the balance
of a decedent's gross estate consists of property of the value of $15,000.00
or less, the court may order that the property be turned over to the surviving
spouse or, if there is not a spouse, to the decedent's heirs.
(2) Upon a showing of evidence, satisfactory to the court, that the decedent's funeral or burial expenses are unpaid or were paid by a person other than the estate, and if the balance of the gross estate after payment of the expenses would consist of property of the value of $15,000.00 or less, the court shall order that the property be first used to pay the unpaid funeral and burial expenses, or to reimburse the person that paid those expenses, and may order that the balance be turned over to the surviving spouse or, if there is not a spouse, to the decedent's heirs.
(3) Other than a surviving spouse who qualifies for allowances under this act or the decedent's minor children, an heir who receives property through an order under this section is responsible, for 63 days after the date of the order, for any unsatisfied debt of the decedent up to the value of the property received through the order. The court shall state in the order the condition on the distribution of property provided by this subsection.
(4) If a decedent's estate meets the criteria for using the procedure under either this section or section 3983 and if a person is authorized by this act to use either procedure, a person, other than the court, shall not require the authorized person to use 1 procedure rather than the other.
(5) A dollar amount prescribed by this section shall be adjusted as provided in section 1210.
700.3987 Summary administrative proceedings.
Sec. 3987.
If it appears from the inventory and appraisal that the value of
the entire estate, less liens and encumbrances, does not exceed homestead
allowance, family allowance, exempt property, administration costs and
expenses, reasonable funeral expenses, and reasonable, necessary medical
and hospital expenses of the decedent's last illness, the personal representative,
without giving notice to creditors, may immediately disburse and distribute
the estate to the persons entitled to the estate and may file a closing
statement as provided in section 3988.
700.3988 Closing by sworn statement of personal representative.
Sec. 3988.
(1) Unless prohibited by court order and except for an estate being administered by a supervised personal representative, a personal representative may close an estate administered under the summary procedures of section 3987 by filing with the court, at any time after disbursement and distribution of the estate, a sworn statement stating all of the following:
(a) To the best knowledge of the personal representative, the value of the entire estate, less liens and encumbrances, did not exceed homestead allowance, family allowance, exempt property, administration costs and expenses, reasonable funeral expenses, and reasonable, necessary medical and hospital expenses of the decedent's last illness.
(b) The personal representative has fully administered the estate by disbursing and distributing it to the persons entitled to the estate.
(c) The personal representative has sent a copy of the closing statement to all estate distributees and to all creditors or other claimants of whom the personal representative is aware whose claims are neither paid nor barred, and has furnished a full account in writing of the estate administration to the distributees whose interests are affected.
(2) The sworn statement filed under this section has the same effect as a sworn statement filed under section 3954. If an objection to the sworn statement is not filed within 28 days after the filing date, the register shall issue a certificate described in section 3958.
(3) If an action or proceeding involving the personal representative is not pending in the court 1 year after the closing statement is filed under this section, the personal representative's appointment terminates.
Small Estate Affidavit for Estates under 15,000
