Small Estate Threshold Raised in New York

Probate and administrationproceedings in New York State can be time-consuming and costly, but New Yorklaw allows for a simplified proceeding called voluntary administration forsmall estates with a value below a certain threshold.  Recently, the threshold was expanded fromestates valued at less than $30,000 to include all estates under $50,000. 

Voluntary administration benefitsapplicants and estates.  First andforemost, the filing fee for a voluntary administration proceeding is only$1.00, a significant savings from the $280.00 filing fee for estates valuedfrom $50,000 to $100,000.  In addition,voluntary administrations can be filed with a simplified and abbreviated affidavitrequiring fewer supporting documents than a formal application. 

The voluntary administrationprocess is available for qualifying estates regardless of whether the decedentdied with or without a will.  Nominatedexecutors can still seek appointment as fiduciary and distribute the estate inaccordance with the decedent’s will. Likewise, next of kin can apply to become voluntary administrators anddistribute the estate in accordance with New York law where the decedent diedwithout a will.  All fiduciaries appointedthrough this process receive voluntary letters of administration enabling themto carry out the duties of administering and distributing the estate.

This proceeding is helpful not onlywhen a decedent dies with modest assets, but also when someone dies with thebulk of his or her assets subject to beneficiary designations or in a trust andhas minimal assets remaining in the probate estate (meaning assets that areowned by the decedent and do not have a beneficiary designation).  It is common for people to engage in estateplanning and create a trust to avoid probate, but still own a small bankaccount subject to probate upon their death. These estates benefit from voluntary administration by avoiding theextensive paperwork and information necessary for the formal probate proceedingthe estate plan was designed to circumvent.

Voluntary administration may be utilized in most instances when the estate falls below the threshold, but formal letters of administration or letters testamentary are necessary when the estate owns real property or will pursue an action for personal injury or wrongful death. 

If you need to administer a NewYork Estate, contact the experienced attorneys at Goldberg Law Group P.C.  We will be there for you for every step ofthe process during this difficult time and help you carry out the wishes oryour friends and family.