When a loved one passes away, managing their estate can be a complicated and emotional process. However, Indiana law provides a streamlined option for smaller estates known as a Small Estate Affidavit. This legal tool allows heirs to acquire certain assets without going through formal probate administration, which saves time, costs, and stress.
Understanding the Small Estate Affidavit
A Small Estate Affidavit is a sworn statement used to claim or transfer assets from a deceased person’s estate when the total value of the estate (less liens and debts on real estate) falls below a certain threshold. In Indiana, this threshold is $100,000 or less.
This affidavit allows whoever is entitled to the property by Indiana law or according to the Last Will and Testament of the deceased individual, to access bank accounts, personal property, and other non-real estate assets without the need for a formal probate estate administration. It is an efficient way to ensure that assets are distributed quickly and legally.
Who Can Use a Small Estate Affidavit?
- Heirs at law for an individual who died without a will – intestate. That could include a spouse, adult children, siblings, and others.
- Devisees or beneficiaries named in a Last Will and Testament of the deceased.
- Personal representatives named in a Last Will and Testament.
Using the affidavit process only requires that someone that has an interest in the property present it, but it requires that all persons with an interest be notified that an individual is using the affidavit AND the individual that obtained the property verifies, under the penalties for perjury, that they will deliver the property to the individuals entitled to them.
How Does the Process Work?
- Determine Eligibility – Ensure the estate meets Indiana’s small estate criteria.
- Wait 45 Days – Indiana law prohibits the use the affidavit until 45 after the date of death.
- Prepare the Affidavit – There are very specific requirements of what must be contained within the affidavit for it to be valid under Indiana law.
- Sworn Statement – The individual signs the affidavit under oath, affirming the accuracy of the information.
- Submit to Financial Institutions – Banks or other institutions will release assets based on the affidavit.
Depending on how the individual using the affidavit is entitled to obtain the assets, the Last Will and Testament of the deceased individual may need to be probated.
This process avoids having to go through an estate administration, if there is less than $100,000 in assets to be administered. It is highly recommended to consult an Indiana estate planning attorney to ensure all requirements are met.
Benefits of a Small Estate Affidavit
- Cost-effective – Avoids probate administration and court costs.
- Faster access to assets – Those entitled to the assets can receive property more quickly.
- Simplified process – Reduces paperwork and court involvement.
Getting Help with a Small Estate Affidavit
Even though a Small Estate Affidavit seems simple, even honest mistakes can lead to disputes and misunderstandings, especially when multiple heirs or beneficiaries are involved and if the assets are in dispute. Consulting an experienced Indiana estate planning attorney or a lawyer skilled in probate, estate, and trust disputes ensures the affidavit is completed accurately and legally. Give us a call to help mitigate the risks and get you the assets you deserve.
