Dealing with the estate of a loved one after their passing can be a complex and emotionally taxing process. If your loved one’s affairs require probate court, this adds stress to the grief of losing a loved one. Probate court administration is a procedure that can be time-consuming and expensive. However, for those who have lost a loved one who passed away with a small estate—specifically valued under $50,000 in 2024—there’s a streamlined alternative: the Affidavit of Decedent’s Successor form.
Understanding the Affidavit of Decedent’s Successor Form
The Affidavit of Decedent’s Successor form is a legal document that mirrors MCL 700.3983 and allows the rightful heirs to claim the decedent’s assets without the need to go through the formal probate process. Probate court is typically required to distribute the assets when the decedent did not have an estate plan and/or failed to implement their estate plan. Probate can be an difficult process, involving court fees, attorney costs, and months—sometimes even years—of waiting. This can be particularly burdensome for small estates where the value of the assets might be eclipsed by the costs of probate.
Thankfully, the Affidavit of Decedent’s Successor form offers a simplified path for small estates. If the total value of the decedent’s estate is under $50,000 in 2024, this affidavit can be used to claim the assets directly. It’s a practical solution that saves time, money, and stress for those already grappling with the loss of a loved one.
Recent Increase to $50,000
Notably, the threshold for using this affidavit was recently increased to $50,000, reflecting a more realistic understanding of the value of assets in today’s economy. Previously, the threshold was lower (i.e. $28,000 in 2023), meaning more estates were forced to go through probate. This change allows more families to avoid the lengthy probate process, freeing them to manage their loved one’s affairs with greater ease.
For example, the author has dealt with many situations when clients forget to retitle an account in the name of their living trust and/or fail to name a beneficiary of an account. If the account owner dies with an account in their name (not a joint account), and there is no beneficiary; probate is required to distribute the assets. Even with an estate plan, these accounts would require a probate.
How It Works: A Step-by-Step Guide
To use the Affidavit of Decedent’s Successor form, the following conditions must typically be met:
- Estate Valuation: Ensure the total value of the estate less liens is under $50,000 and does not include real property. This includes all assets like bank accounts, personal property, and other assets in the decedent’s name.
- Waiting Period: Generally, a certain period must pass after the decedent’s death—often 28 days—before the affidavit can be filed. This allows time for the discovery of all assets and for any potential creditors to make claims. Ensure no application or petition for personal representative has not been filed or is not pending.
- Affidavit Completion: The successor, who could be a family member or other rightful heir, must complete the affidavit, detailing the assets, the information on the persons entitled to the assets and the heir’s entitlement to them. This form needs to be notarized.
- Presenting the Affidavit: Once completed, the affidavit is presented to the institution holding the assets, such as a bank or insurance company. The institution then releases the assets to the heir, bypassing probate entirely.
Conclusion
The Affidavit of Decedent’s Successor form is an great tool for those dealing with small estates. With the recent increase to $50,000, more families can now take advantage of this simplified process, sparing them the additional stress and cost of probate court. In times of loss, having one less legal hurdle to jump over can make all the difference.
This article is meant for informational purposes only. Please recognize that nothing in this article constitutes legal advice. If you have any questions, comments, or seek legal assistance, please contact one of the attorneys at Wakefield Law, P.C.