Let’s say you have a person who died and you need to know what to do about their estate. Sound familiar?
A small estate affidavit is a simple way to transfer assets without the need for a full probate process. This legal tool can help save time and reduce costs, which is usually the perfect solution for those with more modest estates.
What is a Small Estate Affidavit?
A small estate affidavit is a legal document that allows heirs to claim a deceased person’s property without formal probate. In California, this process is governed by Probate Code Section 13100 and applies to estates valued at $184,500 or less (as of 2024). The affidavit can enable the transfer of assets such as bank accounts, stocks, or personal property.
Who Does a Small Estate Affidavit Help?
A small estate affidavit is helpful for:
- Heirs of Deceased Individuals
- Estates Meeting the Value Threshold
- Individuals Seeking a Cost-Effective Way to Transfer Assets
This tool is especially beneficial for estates without significant real estate holdings or complex debts.
Why is a Small Estate Affidavit Important?
The small estate affidavit can help:
- Avoid Probate: Heirs can save months, or even years, of court proceedings.
- Save Money: It can eliminate court fees and legal expenses, which can be really burdensome for small estates.
- Streamline Asset Transfers: Assets can be transferred quickly which gives heirs faster access to funds.
- Reduce Emotional Strain: Simplifying legal issues allows families to focus on grieving and healing rather than navigating complex world of probate.
How Does the Small Estate Affidavit Process Work in Los Angeles?
An estate planning lawyer can:
- Determine Eligibility: At Best Coast Estate Law, PC, our legal team can ensure that the estate’s value falls below the $184,500 threshold and meets other legal requirements. We can help families exclude non-qualifying assets when calculating the estate’s value.
- Ensure Proper Timelines: California law requires a 40-day waiting period after a death before the affidavit can be used.
- Prepare the Affidavit: This includes details about the deceased, the heirs, and the property being transferred. A good estate planning lawyer will include supporting documents, like a death certificate and proof of the estate’s value.
- Obtain Notarization: The affidavit must be signed in the presence of a notary public to ensure its validity.
- Present the Affidavit: Submit the affidavit to the institution holding the property (e.g., a bank or brokerage firm). Upon approval, the institution will release the asset to the named heir(s).
Misconceptions About Small Estate Affidavits
- It’s Not a Substitute for a Will: While the affidavit can transfer assets, it does not replace the need for a comprehensive estate plan.
- Not Applicable to All Property: In California, the small estate affidavit cannot be used to transfer real estate valued over certain amounts..
- Requires Accuracy: Errors or omissions in the affidavit can lead to delays or rejection.
When is Formal Probate Necessary?
A small estate affidavit may not be suitable in cases where:
- The estate exceeds the $184,500 value threshold.
- There are disputes among heirs or creditors.
A small estate affidavit is an invaluable tool for Los Angeles residents managing modest estates. Whether you are planning an estate for a loved one, or your own small estate, consulting with an experienced probate attorney can help protect your assets. Reach out to our California estate law firm today so we can help you. We have offices in Los Angeles, Palm Springs, and are expanding throughout California.
Disclaimer: The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. Brittany Britton is licensed to practice law in the state of California only
