Dispersing the Assets of a Small Estate

Smaller estates usually have less administration complications than their larger counterparts. However, administration considerations should be researched and understood by the owner so that he or she is able to leave enough to beneficiaries or heirs with probate processes known or similar situations mapped out.

Probate for estates left to anyone listed as a beneficiary or heir usually requires months of time in the courts. The estate assets are tied up until these processes are satisfied, and this leaves surviving family members or other dependents without the use of real estate, monetary assets and holdings until they’ve been released. However, it is possible that the estate owner made plans with documentation for passing certain items to persons within his or her estate plan. With small holdings, an estate owner may even bypass probate depending on the state and types of assets within it.

The executor or agent of an estate may seek an administrative procedure to disseminate the assets through a court approval so they are gathered and distributed, or he or she may obtain an affidavit to collect these assets directly and ensure the heirs are provided for personally. Typically, the agent must obtain the death certificate before receiving an affidavit, and the going through the courts to disperse the estate may take more time. Some states have a maximum cap for small estates before the probate process will kick in. It is important for the executor of a will or the agent of the estate to know of these specifics.

The Procedures for Small Estate Administration

Whichever route the executor, agent, or lawyer takes in carrying out dispersing a smaller estate to heirs or beneficiaries, the courts are involved. If these processes are started by someone without authority, more time is needed to obtain the death certificate and attempt to resolve the estate matters. However, when a proper plan is in place, anyone not detailed in the estate plan to execute orders will be blocked. This could lead to a challenge, but until the case is concluded in the courts, the executor may be permitted to complete the details provided by the deceased estate owner. The smaller the estate, the less likely there are challenges, complications or holds on assets.

If the cap is exceeded in states that limit what is considered a small estate, the assets may go through probate or follow other legal documents to disseminate the items to the heirs. The ability to bypass probate courts depends on the state and these caps. Some locations within the United States require a full probate, and others permit a summary administration process to release assets. If there is a demand that the courts are involved, more time is taken for heirs to inherit, but officials approve the process. In seventeen different states, probate is necessary for even smaller estates.

Finalizing Administrative Procedures

If probate cannot be bypassed, the executor of the will, last testament, or estate plan may need to contact heirs and attempt to provide some monetary support if a trust or other process was created for surviving loved ones. Some property and title transfers are completed through court orders or letters while the remainder of the estate goes through probate courts. If the affidavit procedure is possible, some assets are available before and during court proceedings. There are certain exceptions in place that may permit agents to use an affidavit while bypassing court processes entirely. There are often forms that need filing as well as the death certificate. If additional steps are necessary, the agent may still be able to take advantage of the affidavit to release some assets to heirs.