- Illinois avoids burdening small estates with high probate expenses when the value of property subject to probate is less than $100,000 and there is no real estate in the estate. Property passes to an heir, who signs an affidavit avowing his right to receive the bequest. According to the law offices of Robert H. Glorch, affiants can be held personally liable for honest mistakes; and the affidavit procedure should not be used when there are underage or disabled beneficiaries, unpaid creditors, a questionable will, or in cases where the estate assets are not fully known.
- Florida provides two procedures for the disposition of small estates. A petition for Summary Administration is a request to the court for the distribution of the decedent's assets either according to a valid will when the will doesn't direct distribution, or by the Florida laws of intestacy if the individual died intestate (without a will). Summary Administration is permitted when the probated estate, less exempt assets such as the homestead exemption, is no more than $75,000.
Disposition Without Administration is used to avoid attorneys' fees when the nonexempt probated assets are only sufficient to pay funeral costs and the last 60 days of unpaid medical bills. - A probated estate containing real estate often prevents an otherwise modest estate from qualifying for small-estate status under the various state probate laws. According to the website Nonprobate.com, as of June 2011, 12 states have enacted laws permitting property to be deeded "transfer on death" to a named beneficiary to facilitate the removal of real estate from the probated portion of the estate. The states are Arizona, Arkansas, Colorado, Kansas, Missouri, Minnesota, Montana, Nevada, New Mexico, Ohio, Oklahoma and Wisconsin. Real estate with TOD designations are included in the taxable estate, however.
- Property you don't own but over which you retain the right of free use and disposition causes the inclusion of that property in your taxable estate, but not in your probated estate. That status is achieved by transferring property to a revocable trust. At death, the "living" or revocable trust becomes a testamentary trust, which directs assets to the parties named in the trust instrument. Owning property jointly or as tenants-in-common will avoid probate, as will adding "payable on death" (POD) or "transfer on death" (TOD) wording to bank accounts, securities and other financial holdings where permitted.
- Advertisement -
- Advertisement -