What Are Small Estate Affidavits?

For smaller estates in Texas, a small estate affidavit allows heirs to claim a decedent’s assets without the lengthy and expensive probate process. If you are managing the small estate of a deceased loved one, a Houston probate lawyer can help you prepare a small estate affidavit.

Probating a will is costly and sometimes takes a year or more. When there is no will, Texas offers a small estate affidavit for estates valued at or below $75,000. With an attorney’s help, your loved one’s estate can be distributed without a probate court’s interference.

A small estate affidavit can help you receive your inheritance without unnecessary legal hurdles or costs. A Houston probate attorney will help you understand the requirements and prepare the affidavit.

Which Texas Estates Qualify for Small Estate Affidavits?

Texas requires formal probate when an estate’s value exceeds $75,000. You may file a small estate affidavit when the estate’s value, excluding the homestead and exempt property, is less than $75,000. Other requirements for using the small estate affidavit include:

  1. The decedent passed away at least thirty days earlier and without a will.
  2. No one is designated as the estate’s personal representative.
  3. The estate’s assets, excluding homestead and exempt assets, exceed its debts.
  4. The heirs agree to use the small estate affidavit and asset distribution method.

Perhaps the main benefit of the small estate affidavit process is its expense compared to formal probate, which may entail considerable court costs and lawyers’ fees. The small estate affidavit process lets heirs retain a more significant portion of the estate than the probate process.

Who May File a Small Estate Affidavit?

To file a small estate affidavit, you must show documents to the court that verify the details of the estate and your claim on the estate’s assets:

  1. Death certificate: A death certificate is proof of the decedent’s death. You must present the death certificate to begin settling the decedent’s estate.
  2. Proof of your relationship with the decedent: To prove that you are a legitimate heir, you must have documentation of your relationship with the decedent: for example, a marriage or birth certificate or other documents indicating your right to inherit.
  3. Inventory of the estate: You must compile a listing of the estate’s liabilities and assets. This listing confirms to the court the estate’s financial obligations are satisfied before the court distributes the decedent’s assets.

Additionally, to file a small estate affidavit, you must be someone who would inherit under Texas intestacy law: a spouse, child, or a close family member if there are no children or spouse. If a minor is the only heir, the parent or guardian may file the affidavit on the child’s behalf.

What Mistakes May Invalidate a Small Estate Affidavit?

When you file a small estate affidavit, you must avoid mistakes that could delay the process or trigger legal problems. That’s why a Houston probate lawyer should help you compile the needed documents, complete the paperwork, and guide you through the small estate affidavit process.

What mistakes are commonly made in that process? Small estate affidavit filers frequently overlook or undervalue assets and often forget (or don’t know) to inform creditors about the decedent’s passing.

What Can Happen if You Overlook Certain Assets?

A frequent mistake is overlooking assets that should be listed in the small estate affidavit. Don’t overlook vehicles, bank accounts, and personal property, and don’t assume such assets are outside the affidavit’s scope.

If you do not include all of the eligible assets, the court may invalidate your small estate affidavit, or another party may challenge it. Carefully examine the decedent’s property holdings and financial records to ensure you have accounted for all eligible assets.

Why is Accurate Asset Valuation So Essential?

An inaccurate asset valuation can cause considerable problems in the small estate affidavit process. Overestimating an estate’s value, for example, could make the estate appear ineligible for the small estate affidavit procedure.

Accurate valuation helps you prevent challenges from the court and disputes among the heirs. You should have help from a professional appraiser, especially when dealing with antiques, real estate, or valuable personal items.

What Can Happen if You Fail to Inform Creditors?

Another common mistake is failing to inform creditors of the decedent’s passing. In Texas, a decedent’s debts must be paid before an estate’s assets can be distributed. Creditors who are not notified may subsequently make claims and delay the distribution of assets.

Before you file a small estate affidavit, notify all of the decedent’s creditors and settle or negotiate the decedent’s debts. If necessary, your Houston probate attorney can help you locate creditors and negotiate the decedent’s debts.

What Else Should You Know About Small Estate Affidavits?

When your small estate affidavit and the supporting documents have been completed and filed, it does not take a Texas court long to review and approve the affidavit. Small estate affidavits are sometimes approved in a week to ten days if there are no mistakes or complications.

To avoid any future disputes or complications, it is essential to meet all of the legal requirements. While the small estate affidavit process seems straightforward, the conditions and limitations can be challenging. Ask an attorney at the Hatchett Law Firm to help you.

Let the Hatchett Law Firm Prepare Your Small Estate Affidavit

When a loved one passes away, the Hatchett Law Firm, PLLC. can protect your interests and rights. We advise and represent clients in the Houston area and throughout the United States. We prefer to help solve problems and have considerable experience resolving family conflicts.

You can help your loved ones avoid an inheritance dispute by letting the Hatchett Law Firm prepare a comprehensive estate plan with instructions for helping you in the event of incapacity and distributing your estate after your death.

We have over thirty years of experience preparing wills and trusts and planning estates for families in the greater Houston area. To learn more about probate, guardianship, estate planning or to let us help you prepare a small estate affidavit, call the Hatchett Law Firm, PLLC. at 281-771-0560 to speak with a member of our team.