Settling Small Estates (AK)
In Alaska, small estates can avoid probate by using a small estate affidavit, or simplify it via summary administration. Regardless of estate size, probate is not required if an estate contains only assets exempt from probate.
Small Estate Affidavit
If an Alaska estate has a gross value <$150,000, you may be able to use the small estate process to settle the estate with no court involvement.
Requirements
To use the small estate process, the following conditions must be true:
- Any vehicles in the estate are worth <$100K combined
- The estate personal property, other than the vehicles mentioned above, has a gross value <$50K
- At least 30 days have passed since the death
- No petition has already been made to the court to officially appoint a personal representative
In determining the gross value of the estate, you should value assets as of the date of death, and ignore any unsecured debts (but do subtract things like car loans, liens and mortgages). Do not include any assets that would not normally go through probate, such as community property with right of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.
Process
To use the small estate process:
- Prepare a Small Estate Affidavit (Form P-110)
- Obtain possession of estate assets by presenting the affidavit to current custodians (this affidavit cannot be used to collect real estate)
- Settle the estate in the normal way (pay debts, distribute remaining assets)
- If you are transferring a vehicle, submit Form 827 to the DMV
- If everything goes smoothly, no court involvement will ever be required
See AK Stat § 13.16.680.
Summary Administration
Summary Administration (also known as simplified probate) can be used for somewhat larger estates, or if you simply want court involvement so that enforcement and protection are a bit more formalized.
Requirements
You can use summary administration if the estate is worth less than the sum of:
- The value of any homestead allowance, exempt property, and family allowance
- Estate administration expenses
- Reasonable funeral expenses
- Reasonable and necessary medical and hospital expenses of the last illness
In determining the value of the estate, you should value assets as of the date of death, and subtract any secured debts such as liens or mortgages (but ignore unsecured debt such as credit card debt). Do not include any assets that would not normally go through probate, such as community property with right of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.
Process
To settle an estate via summary administration:
- Submit to the court a Request for Informal Probate (Form P-315) or a Request for Informal Probate without Will (Form P-325)
- Upon approval, the court will appoint you as personal representative for the estate, and give you "Letters"
- Whenever you are ready after your appointment, use your "Letters" to collect estate assets from current custodians
- Within 30 days after appointment, notify all heirs and devisees using Form P-340
- Within 3 months after appointment, submit an estate inventory to the court using Form P-370 (consider attaching an EstateExec Inventory report)
- After submitting the inventory, disburse the estate assets to the proper recipients in the priority order listed in the requirements
- Prepare a Final Accounting (you may use Form P-380, or consider using an EstateExec Final Accounting Report)
- Prepare a Closing Statement (Form P-350)
- Send the Closing Statement to all unpaid creditors and to all distributees, also providing a copy of the Final Accounting to any distributees whose interests were affected
- Submit the Closing Statement to the court
- If no proceedings are pending in the court one year after you file the closing statement, your appointment terminates
See AK Stat § 13.16.690.
Estate Settlement Considerations
Before paying any debts or making any distributions, be sure to account for any Family Entitlements in AK, which typically have priority over everything except expenses of the last illness, funeral charges, and any estate administrations expenses.
Even if the estate does not go through probate, you may still be entitled to Executor Compensation in AK, and this compensation also has priority over most estate debts.
Estate debts have priority over most distributions in turn, so before distributing assets you should resolve any estate debts. If the estate makes any distributions beyond amounts set aside for family entitlements, unpaid creditors have the right to sue the recipients for repayment using those excess distributions. Consequently, even if the settlement process does not require you to publish a Notice to Creditors, you may want to follow AK probate rules for finding estate debts, since doing so may limit the time creditors have to pursue repayment.
If estate solvency is uncertain, an executor should consider going through official probate for the increased creditor protection it offers. Alternately, such uncertainty can sometimes persuade creditors to forgive a portion of debts, since they will want to avoid legal expenses as well, and may prefer to get something rather than nothing.
See also Making Distributions.
Court
In Alaska, estate probate is handled by a Superior Court in the judicial district in which the decedent lived.
Additional Information
If your estate doesn't qualify for a small estate approach, or you're simply interested in exploring standard probate, take a look at Probate in AK.
And since probate is just the court-supervised subset of winding up a person's affairs after death, you'll probably want to check out our Complete Guide to Estate Settlement in AK.
Finally, in case you're interested, details about handling small estates in other states can be found here: