Full question:
My Mother has passed and there is a Trust. There are specific bank accounts listed as well as real property. I am the Trustee and the trust is very specific as to the division of the trust. Separate there is a life insurance policy that list the Estate of Helen Hill as the beneficiary not the trust. Because the life insurance is under the 100,000.00, can I submit a Small Estate Affidavit because it is not going into the trust? If not what is it that I need to do?
- Category: Wills and Estates
- Subcategory: Small Estates Affidavit Law
- Date:
- State: California
Answer:
When a person dies, their assets are distributed through probate. If there is a valid will, an executor manages the distribution. Without a will, the court appoints an administrator to handle the estate according to state intestacy laws.
In California, if the total value of the estate is under $100,000, small estate procedures can be used instead of formal probate. An heirship affidavit can replace letters of administration, and an attorney is not required.
Assets outside of a living trust that do not exceed $100,000 can be transferred using an affidavit procedure, excluding assets held in joint tenancy or those with named beneficiaries, like life insurance policies. The trustee must wait 40 days after the decedent's death to initiate this process.
However, if the life insurance policy names the estate as the beneficiary, the proceeds are included in the estate's gross value for probate purposes, which means probate would be necessary. Therefore, you cannot use a Small Estate Affidavit for the life insurance proceeds if they are payable to the estate.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.