Small Estate Affidavit in Maryland: Maximize Your Benefits

Small Estate Affidavit in Maryland

Picture this: You’re standing in a maze of legal jargon and lengthy processes, feeling lost and overwhelmed as you try to honor the wishes of a recently departed loved one. Or perhaps you are in the process of creating a Last Will and Testament for yourself so that your loved ones are taken care of. The Small Estate Affidavit in Maryland, also known as the “Small Estate Petition for Administration,” can simplify the probate process, saving you time, resources, and stress. Understanding the purpose and significance of small estate administration in Maryland is your key to unlocking a more efficient and accessible path, ensuring that your loved one’s legacy is transferred smoothly to their rightful beneficiaries.

What is a Small Estate Affidavit in Maryland?

A Small Estate Affidavit in Maryland is a legal document that serves as an alternative to the “regular”, which requires a more extensive probate process. It is designed to simplify and (hopefully) expedite the administration of estates with a limited value, allowing for a more efficient distribution of assets to the rightful beneficiaries. In Maryland, an estate is considered “small” if the total value of the decedent’s assets subject to probate falls below a certain threshold-you cannot simply choose to file a Small Estate Affidavit. However, with an experienced Maryland attorney, there are some legal arrangements that can help you to qualify.

If you do qualify for a small estate and submit a Small Estate Affidavit in Maryland, you can bypass many of the time-consuming formalities required by the standard probate process. The process of administering a small estate is similar to the process of administering a regular estate. However, in a small estate:

  • The whole process can be faster;
  • You don’t have as many forms and documents to complete;
  • There are significantly fewer administrative aspects.

Eligibility for a Small Estate Petition for Administration

Eligibility for a Small Estate Affidavit in Maryland depends on the total value of the decedent’s (the person that passed away) assets subject to probate, as well as the nature of those assets. To qualify, the estate must fall below a certain monetary threshold-which is determined by the state. As of September 2021, the limit for small estates is $50,000, or $100,000 if the spouse is the sole heir (also called “legatee”). You will need to verify the current threshold, as this amount may change over time.

Additionally, only certain types of assets are considered in determining eligibility. Examples include:

  • Personal property;
  • Bank accounts;
  • Real estate property held in the decedent’s name alone that is subject to the probate process.

Assets held in joint tenancy, with designated beneficiaries, or payable or transfer on death designation-like retirement accounts, life insurance policies, or even bank accounts and brokerage accounts-are not factored into the calculation.

When these requirements are met, the personal representative of the estate can take advantage of the simplified probate process offered by a small estate.

Benefits Offered by the Small Estate Petition for Administration

The Small Estate Petition for Administration offers numerous benefits:

  • Simplified Process: Small estates bypass many of the formalities and complexities associated with regular probate, simplifying the administration process and making it more manageable.
  • Time Savings: The expedited nature of the small estate process means that assets can be distributed to beneficiaries faster compared to standard probate, which may take months or even years to complete.
  • Cost Savings: With fewer legal requirements, the small estate administration process generally incurs lower court fees and other associated costs. Estates valued below $50,000 are not subject to the probate fee. This leaves more of the decedent’s assets available for distribution to the beneficiaries.
  • Reduced Stress: Dealing with the loss of a loved one is already an emotionally challenging experience. The Small Estate Petition for Administration alleviates some of your burden by simplifying the estate administration process, allowing you to focus on healing and honoring your loved one’s memory.

It is important to note that it is not your choice to choose to administer a small estate versus a regular estate. Administering a small estate is solely based on the size of the estate (below $50,000, or below $100,000 if the spouse is the sole heir). However, there are ways to negate certain aspects of the probate process-with prior planning-and organize your assets to make it so that an estate qualifies for a small estate affidavit in Maryland.

How PathFinder Law Group Can Help

PathFinder Law Group is an experienced Estates and Trusts law firm in Maryland.

When it comes to estate planning and administration, PathFinder Law Group is here to guide you every step of the way. Our mission is to ensure your assets are organized effectively, so your estate can potentially qualify as a small estate. Here’s how we can help you:

  1. Asset Analysis: We’ll begin by thoroughly reviewing your current assets and determining which are subject to probate. We will identify any assets that can be transferred outside of probate, such as payable-on-death accounts, beneficiary designations, or assets held in joint tenancy.
  1. Estate Planning Strategies: To help your estate qualify for the small estate process, we’ll work with you to develop tailored estate planning strategies. This may include creating living trusts, beneficiary designations, or recommending other legal tools that can help reduce the size of your probate estate.
  2. Asset Reorganization: PathFinder Law Group will guide you through the process of reorganizing your assets to maximize your chances of qualifying for a small estate. This may involve retitling assets, consolidating accounts, or making other strategic changes to ensure your estate falls within the Maryland small estate threshold.
  3. Ongoing Support and Direction: At PathFinder Law Group, we understand that estate planning is an ongoing process. We’ll make sure your estate plan stays up to date with any changes in your life or Maryland’s small estate laws.
  4. Peace of Mind: With our experienced attorneys at your side, you can have peace of mind knowing that your assets are organized effectively and your loved ones will be taken care of. We’ll help you navigate the complex world of estate planning and administration, making it as smooth and stress-free as possible.

When you partner with PathFinder Law Group, you can confidently embark on the journey of organizing your assets to qualify for a small estate affidavit, providing a more efficient and accessible path for your loved ones during a difficult time.

If you were named personal representative and want to see if your loved one’s estate qualifies as a small estate OR if you want to reorganize your assets so your loved ones can avoid aspects of the probate process, contact PathFinder Law Group today or call us at (443) 579-4529 for a free consultation.

About Adam Zimmerman

Adam Zimmerman is known for his unique ability to put people at ease. Within minutes of meeting Adam, his clients realize he is not the stereotypical attorney and is genuinely invested in helping them through their life situations. He is committed to empowering his clients to be decision makers in the process, so they are knowledgeable about the course of action they decide over their affairs.