Small Estate Affidavits In Tennessee Explained
I’m Brad Woodall from ProbateResource.com. Today, I’m back with my friend April Jackson, a probate and estate attorney based in Nashville, Tennessee.
We are creating videos covering various topics related to probate law in Tennessee. If you want to see all our videos, you can go to ProbateResource.com/Tennessee, where you’ll find a collection of videos featuring April.
In this video, we will discuss small estate affidavits, which are quite common.
Many families often deal with these when inheriting items like a bank account or personal belongings, such as a piece of art.
April, could you explain when someone would need to use a small estate affidavit? Also, could you touch on the statutory limits in this context and situations where a small estate affidavit wouldn’t apply?
Tennessee’s Small Estate Petition
In Tennessee, you can now file what’s called a petition for small estates.
If you’re interested in seeing what one looks like, the Davidson County Circuit Court Clerk’s probate forms are particularly helpful. If you are dealing with a small estate, you likely won’t need an attorney; however, it’s essential to ensure that all information in your petition is factual.
The petition will require various details, such as whether there was a will, who the surviving family members are, and whether there are any debts.
If the total value of the property is less than $50,000, you can file for a small estate in Tennessee. This process will help you obtain the necessary documentation because, traditionally, banks require what’s called letters of authority.
The small estate affidavit or petition now allows you to get both a court order and limited letters of authority, which banks require to close out the estate or bank accounts. You will need to appear before a judge for a court date, but most judges are generally kind and straightforward. If you don’t submit everything correctly, the judge will typically send you back to make the necessary corrections. It’s also worth noting that there have been a few recent updates to the small estate process.
When to Consider Alternatives to the Small Estate Process
If you have any significant assets or real estate, you might want to avoid this route. A will that leaves real estate will still transfer to the designated heirs under law, and thus, consulting with an attorney would be wise in those cases. Make sure to check if your county has updated the necessary forms on their website, as significant statutory updates have occurred recently, and you want to ensure you’re using the correct version.
Steps for Filing a Small Estate Petition in Tennessee
To start, it’s important to understand that you’ll need to complete a few specific steps. If there is a will, you must file the original document with the court. Additionally, you will need to submit a certified copy of the death certificate. In many cases, we may be dealing with a bank account or another asset that either lacks a beneficiary designation or whose designation has failed. Overall, the total value of these assets should be under $50,000. There is a possible exception for real estate; however, dealing with real estate involves additional complexities, such as filing a small estate petition.
Brad:
As you mentioned, it usually doesn’t make sense to proceed without proper documentation. If you’re engaged in a sale and are working with a competent agent or investor, they will likely know what steps to take and who to contact to ensure everything is handled correctly.
The title company will want to verify that all necessary documentation is in place before transferring the title. They will not issue a warrantable title if things aren’t done correctly. Additionally, you brought up that there is a specific form for transferring ownership of a car, which is quite common, right? For instance, if someone has passed away and you are inheriting their vehicle, what documentation would you need for that?
The form asks for details such as: who passed away, what the vehicle is, and the VIN number. It also requires the names of all individuals who would inherit the vehicle. For example, if there’s one car but three children, and it’s known that the deceased father wanted Johnny to have the car, then the other two children must sign off on it. In that case, the Department would reissue the title to Johnny.
Brad:
So it’s a bit complicated, but it seems like a mostly streamlined process. I understand the need for it. After all, what if Brother Steve thinks Dad wanted to give him the car? That could lead to some conflicts.
You can resolve it either by mutual agreement among the heirs, or by presenting a title, which wouldn’t be the most pleasant way to handle it. If you’re going through probate, the title will be issued to the executor of the estate.
Brad:
The executor is legally obligated to act on behalf of the heirs, so there’s no question about it.
Could the executor maliciously sign it over to someone else? Sure, but that would be breaking the rules.