Settling Small Estates (MI)
Full probate is not required for small estates in Michigan, enabling an executor to save considerable effort and cost via three alternate approaches. Regardless of estate size, probate is not required if an estate contains only assets exempt from probate.
Small Estate Definition
Michigan defines a "small" estate as one whose assets do not exceed $27,000 for decedents passing away in 2023 (see Estate Limits column MCL 700-3983 for previous year limits).
In calculating estate value, you should value assets as of the date of death, subtracting the amounts of any associated liens or encumbrances, but ignoring any unsecured debts. Do not include 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.
Note that the $27K estate limit can be increased somewhat when using Court Assignment of Property, and more significantly when using Summary Administration: see below.
Small Estate Affidavit (No Court)
A Michigan estate can use the Small Estate Affidavit process and bypass court entirely if:
- The estate qualifies as "small" as per above
- The estate does not include any real property (i.e., real estate)
- At least 28 days must have passed since the death
- An application for appointment of personal representative has not been made
To use this process, fill out an Affidavit of Decedent's Successor For Delivery Of Certain Assets Owned By Decedent (Form PC-598), attach a copy of the death certificate, and have the form notarized. You can then present this notarized form to anyone holding estate assets to obtain possession.
Once you obtain possession of estate assets, you should settle the estate in the normal manner: resolve any estate obligations and distribute remaining assets to heirs.
If everything goes smoothly, there should be no need for court involvement at all.
See MI Comp L § 700.3983.
Assignment of Property (Minimal Court)
If an estate qualifies as "small", you may instead want to use Court Assignment of Property to settle the estate.
Unlike the Small Estate Affidavit, this approach can handle real property (i.e., real estate), and is available to slightly larger estates: you can increase the small estate value limit (see above) by the amount of any funeral or burial obligations.
To use this approach, fill out a Petition and Order for Assignment (Form PC-556) and submit it to the court.
The court will then give you an order that enables you to settle the estate in the normal manner: resolve any estate obligations and distribute remaining assets to heirs.
See MI Comp L § 700.3982.
Summary Probate Administration (Some Court)
If the estate is slightly larger, you can still avoid full-blown probate via a Summary Administration as long as the qualified net value of the estate does not exceed the sum of the following:
- Executor and estate administration expenses
- Reasonable funeral and burial expenses
- The sum of any family entitlements
- Reasonable and necessary medical and hospital expenses of the decedent's last illness
To settle the estate via summary administration, submit an Application for Informal Probate (PC-558) to the court, and include:
- Estate Inventory Form (PC 577)
- Registrar's Statement Form (PC 568)
- Acceptance of Appointment Form (PC 571)
You will then receive your Letters of Authority from the court. Settle the estate in the normal manner: pay any estate obligations, and distribute remaining assets to heirs.
Afterwards, notify any known creditor and heir whom the estate did not have enough money to pay, and submit a Summary Closing Statement (Form PC-590). to the court.
See MI Comp L § 700.3987 and § 700.3988.
Estate Settlement Considerations
Before paying any debts or making any distributions, be sure to account for any Family Entitlements in MI, 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 MI, 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 MI 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 Michigan, the local Probate Court handles wills and estate matters.
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 MI.
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 MI.
Finally, in case you're interested, details about handling small estates in other states can be found here: