Not everyone has a sizable estate or a will that sets out how assets will be distributed after they die.
The probate process can be costly and time-consuming for family members after a loved one dies. If the deceased family member had few assets, going through probate can eat up what little estate is left. Fortunately, courts in Texas provide an alternative for these situations with a small estate affidavit.
What is a Small Estate Affidavit?
For these scenarios in which family members die with more modest estates, laws have been enacted to deal with them outside the usual probate process. Smaller estates can be administered with far less cost and time using a small estate affidavit. A small estate affidavit, or SEA, is a document that can be used to transfer assets to heirs quickly and efficiently without the cost and time of probate, providing certain conditions are met.What Happens When Someone Dies Without a Will in Texas?
When someone dies without a will in the state of Texas, it is said that the deceased party died “intestate.” Under probate laws, there is a succession of who gets assets in the estate when this happens and a statutory formula that is used to determine who gets what. During the probate process, the court locates heirs and determines how the assets will be divided. Unfortunately, this can be time-consuming and eat up what little assets are in the estate. This is when a small estate affidavit may be a good alternative. Utilizing a SEA can be a more cost-effective way to administer the deceased party’s estate if certain criteria can be met. The qualifications for an SEA are:- The deceased individual died without having a will.
- Nobody has applied to be a personal representative of the estate.
- There is less than $75,000 in assets in the estate. This does not include homestead property or other exempt property, such as a vehicle, furniture, or other property intended for the spouse, any minor children, or any adult children still living at home. Money in bank accounts is not considered exempt.
- The assets are worth more than the estate’s debts, not including mortgages and or other debts secured by exempted property.
- All heirs can be located, and they are willing to sign the small estate affidavit.