Wednesday, July 16, 2014
Joseph N. Blumberg (Polsinelli PC, St. Louis) recently published an article entitled, 51 Flavors: A Survey of Small Estate Procedures Across the Country, Probate & Property Vol. 28 No. 4, 31-37 (July/August 2014). Provided below is the article’s introduction:
Properly navigating a probate administration in any one state can be challenging enough, but often the client’s estate—and the attorney’s practice—is not so neatly confined within one state’s boundaries. Fortunately, for certain types of assets and smaller estates, clients can avoid full probate proceedings and, in some states, any court involvement whatsoever. This article and the accompanying chart of state-by-state options seek to provide a starting point for attorneys who find their clients’ assets in unfamiliar territory.
The 50 states plus the District of Columbia generally implement on or both of two procedures for handling and disposing of assets in small estates: (1) a summary administrative procedure, whereby the personal representative must receive court approval to gather and distribute assets (“Summary Administration”); and (2) an independent affidavit procedure, whereby an appropriate person can prepare an affidavit to directly collect and distribute money or property owned by the decedent (“Affidavit Procedure”). In the simplest terms, Summary Administration requires court formalities before collecting assets, but the Affidavit Procedure requires no court action, that is, it is a self-executing affidavit. Another major point of distinction between the states is the maximum dollar amount, or “cap,” under which an estate can qualify for a small estate procedure. Although these major distinctions are apparent, each state’s experimentations have produced numerous fine distinctions—the 51 flavors of small estate administration.