Probate for Small IN Estates

Requirements

To use the small estate process, the following conditions must be true:

• The estate's personal property, minus any reasonable funeral expenses, is worth <$50K in total
• At least 45 days have passed since the death
• No petition has already been made to the court to officially appoint a personal representative

In determining the value of the personal property, you should value assets as of the date of death, and ignore any unsecured debts. Do not include real estate, or any assets that would not normally go through probate, such as community property with rights of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.

Process

To use the small estate process:

1. Prepare a Small Estate Affidavit form (see below)
2. Notify anyone else entitled to the estate property you are claiming that you intend to use a small estate affidavit (it's normal to give at least 10-day's advance notice)
3. Obtain possession of the property by presenting the affidavit to the current custodian of the property (real estate cannot be transferred via small estate affidavit)
4. Settle the estate in the normal way (pay debts, distribute remaining assets)
5. To transfer title of a vehicle or watercraft you must also file an IN Form 18733 with the Bureau of Motor Vehicles.

Affidavit Form

You can use the Small Estate Affidavit Form provided by Indiana Legal Help.

If you instead choose to create your own, it must:

• State that the above requirements have been met
• List the name and address of everyone entitled to the property being claimed, along with their shares
• Confirm that each such person has been notified of your intent to use this affidavit
• Declare that you are entitled to collect the property on their behalf

While not necessarily required by law, it can be very helpful to have the affidavit notarized, and to attach a certified copy of the death certificate and a copy of the will (if one exists).

Requirements

You can use simplified probate (also known as summary probate) if the value of the estate, after subtracting any estate administration costs and reasonable funeral expenses, is <$50,000.

In determining the value of the property, you should value assets as of the date of death. Ignore any unsecured debts (such as credit cards), but do account for secured debts such as mortgages (i.e., if a house is worth $150K and has a $130K mortgage, the house would contribute $20K to the estate value). Do not include any assets that would not normally go through probate, such as community property with rights of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.

Process

To settle an estate via simplified probate:

1. Submit to the court a Petition for Probate and Issuance of Letters Testamentary for an Unsupervised Administration (check with the local court to determine any preferred format; here is an example Marion County Petition)
2. Upon approval, the court will issue your "Letters", which you can use to obtain possession of estate assets
3. Settle the estate in the normal way, keeping in mind the Family Exemptions mentioned below
4. File a Closing Statement with the court, and send required notices (see below)

Closing Statement and Notices

The court Closing Statement must state that:

• The gross probate estate, less liens and encumbrances, did not exceed the sum of estate administration costs, reasonable funeral expenses, and $50,000
• The assets were distributed to the persons entitled to them, and the distributees were given a full accounting of the estate (see EstateExec Final Accounting Report)
• A copy of the closing statement was sent to all estate creditors and distributees

If the estate contained real estate, you must also attach a copy of any real property affidavit you filed (see below).

Send the required notices described in the closing statement, and have the statement notarized (i.e., sign and have your signature verified) before filing it with the court.

Real Property

If the estate contains real property, you should also file an affidavit (a simple sworn statement) in the office of the recorder in the county in which the property is located, stating: ""It appears that the decedent's gross probate estate, less liens and encumbrances, does not exceed the sum of the following: fifty thousand dollars ($50,000), the costs and expenses of administration, and reasonable funeral expenses."

The affidavit must also contain the legal description of the property, the name of each person entitled to any share in the property as a result of the decedent's death, the share to which each person is entitled, whether the share is a divided or undivided interest, and a statement which explains how each person's share has been determined.

Notarize the affidavit before filing.