Personal Property Lawyer in Sacramento

HANDLING SMALLER ESTATES

When a decedent’s personal and real property does not exceed $184,500. in value, and if at least 40 days have passed since the death of the decedent, the successor(s) of the decedent may complete an Affidavit under Probate Code § 13000 and use that affidavit to obtain various types of personal property, including cash, tangible personal property, and outstanding debts payable to the decedent.

While this procedure can be relatively simple to use, it can only be used if the gross value of the decedent’s estate does not exceed $184,500. Calculating the gross value of the estate can be a little tricky. Probate Code § 13050 specifically excludes certain property from the “gross value of the estate” calculation, and should be reviewed carefully prior to executing an Affidavit under Probate Code § 13000, as described in Probate Code § 13101.

Need help handling a small estate? Contact us today at (916) 237-8781 to discuss your situation and find the best approach for transferring assets smoothly.

The most common problem with the use of the Probate Code § 13101 Affidavit involves the decedent’s debts. While debts can be limited and sometimes terminated through a probate proceeding, creditors can freely pursue beneficiaries and heirs who receive property from a decedent’s estate under such an Affidavit for an amount up to the value received by the beneficiary or heir.

As always, it is wise to consult with an experienced estate attorney before taking legal action. Give us a call today if you would like to schedule a meeting with one of our attorneys.

Overview of Probate in California

What is probate?
Probate is the legal process of settling a person’s estate after they pass away. It involves:

• Validating the will (if one exists).
• Identifying and valuing assets.
• Paying outstanding debts and taxes.
• Distributing the remaining property to heirs or beneficiaries.

When is probate required?
Probate is typically required if the total value of the decedent’s assets exceeds $184,500 and those assets are not already set to transfer automatically to a beneficiary.

How does probate differ from using an affidavit under Probate Code § 13000?
The small estate affidavit process allows heirs to collect assets without going through probate, making it:

• Faster – Can be used after 40 days instead of waiting months or years for probate.
• Less expensive – Avoids court fees and attorney costs.
• Simpler – No formal court proceedings are required.

However, this process only applies if the estate’s total value (excluding certain assets) is $184,500 or less.

Exceptions to Probate Requirements

Not all assets must go through probate. Some can bypass the process, including:

• Assets with a named beneficiary – Life insurance policies, retirement accounts (IRAs, 401(k)s), and payable-on-death (POD) bank accounts transfer directly to the named individual.
• Jointly owned property – If property is held in joint tenancy or as community property with right of survivorship, ownership automatically passes to the surviving co-owner.
• Trusts – Assets held in a revocable living trust do not go through probate, as they are legally owned by the trust.

Using these strategies can help heirs receive their inheritance more quickly and with fewer legal complications.

Detailed Explanation of Probate Code § 13050 Exclusions

What property is excluded from the gross estate calculation?
Under Probate Code § 13050, certain assets are not counted toward the $184,500 limit, such as:

• Real estate located outside of California.
• Joint tenancy property that automatically transfers to a co-owner.
• Life insurance and retirement accounts with named beneficiaries.
• Vehicles, boats, and mobile homes registered in California.

How to determine if the estate qualifies for the affidavit process?
To see if an estate qualifies:

• Make a list of all assets owned by the decedent.
• Subtract excluded assets under Probate Code § 13050.
• If the remaining total is $184,500 or less, the small estate affidavit process can be used.

If you’re unsure, consulting an experienced estate attorney can help you avoid mistakes and ensure a smooth transfer of assets.

Frequently Asked Questions (FAQ)

What if the estate includes real estate?

• The small estate affidavit only applies to personal property like bank accounts and personal belongings. If the estate includes real estate, probate may be required unless the property is worth $66,250 or less, in which case a simplified court process may apply. An attorney can help determine the best approach.

Can multiple heirs use a single affidavit?

• Yes, but all heirs must agree. One person can file the affidavit, but they must list all heirs and get their consent. If there are disputes over the inheritance, probate court may be needed to resolve them.

What if a bank refuses to accept the affidavit?

• Banks sometimes hesitate to release funds without probate, even if an estate qualifies. This may be due to missing documents or internal policies. If this happens, providing additional proof or consulting an attorney can help. If the bank still refuses, a court order may be required.

Are debts automatically forgiven in the small estate process?

• No. Creditors can still collect debts from heirs who receive property through a small estate affidavit. Unlike probate, which settles debts before distributing assets, the affidavit process does not automatically protect beneficiaries from creditor claims.

What if the estate’s value is close to the $184,500 limit?

• If the estate is slightly above the limit, probate is usually required. However, some assets, like life insurance payouts and jointly owned property, are excluded from the calculation. If removing these brings the total below $184,500, the affidavit process may still be an option.

How long does it take to receive assets?

• The affidavit process can start 40 days after death, and most institutions process claims within a few weeks. This is much faster than probate, which can take months or years.

Do I need a lawyer?

• Not necessarily, but an attorney can help ensure the estate qualifies, avoid mistakes, and handle creditor claims. If the situation is unclear or involves disputes, legal guidance is highly recommended.

Unsure if probate is required? Contact us at (916) 237-8781 for guidance on whether the small estate process applies to you and how to move forward.