Settling Small Estates (ND)

Requirements

To use the small estate process, the following conditions must be true:

• The entire probate estate has a gross value <$100K
• At least 30 days have passed since the death
• No petition has already been made to the court to officially appoint a personal representative

In determining the gross value of the estate, you should value assets as of the date of death, and ignore any unsecured debts (but do subtract things like liens and mortgages). Do not include any assets that would not normally go through probate, such as community property with right of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.

Process

To use the small estate process:

1. Prepare a Small Estate Affidavit (Form 1 in the Guidebook)
2. Obtain possession of estate assets by presenting the affidavit to current custodians (this affidavit cannot be used to collect real estate)
3. Settle the estate in the normal way (resolve debts, distribute assets)
4. If you are transferring a vehicle, contact the Department of Transportation to get the title changed; you will need a DMV Small Estate Affidavit
5. If everything goes smoothly, no court involvement will ever be required

Requirements

You can use summary administration if the estate is worth less than the sum of:

1. The value of any homestead exemption, exempt property, and family allowance
2. Estate administration expenses
3. Reasonable funeral expenses
4. Reasonable and necessary medical and hospital expenses of the last illness

In determining the value of the estate, you should value assets as of the date of death, and subtract any secured debts such as liens or mortgages (but ignore unsecured debt such as credit card debt). Do not include any assets that would not normally go through probate, such as community property with right of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.

Process

To settle an estate via summary administration:

1. Submit to the court an Application for Informal Probate or an Application for Informal Appointment if there is no will (see ND Informal Administration Guidebook)
2. Upon approval, the court will appoint you as personal representative for the estate, and give you "Letters"
3. Whenever you are ready after your appointment, use your "Letters" to collect estate assets from current custodians
4. Within 30 days after appointment, notify all heirs-at-law and people named in the will as to your appointment (Form 5 in the ND Informal Administration Guide)
5. Within 6 months after appointment, submit an estate inventory to the court (Form 10 in the ND Informal Administration Guide)
6. After submitting the inventory, disburse the estate assets to the proper recipients in the priority order listed in the requirements
7. Prepare a Final Accounting
8. Prepare and send a Closing Statement (see below) to all unpaid creditors and to all distributees, also providing a copy of the final accounting to any distributees whose interests were affected
9. Submit the Closing Statement to the court
10. If no proceedings are pending in the court one year after you file the closing statement, your appointment terminates

Closing Statement

A closing statement must state that:

• To the best of your knowledge, the value of the entire estate did not exceed the items listed under Requirements above (list each requirement)
• You fully administered the estate by disbursing and distributing it to the persons entitled to it
• You sent a copy of the closing statement to all unpaid creditors of whom you are aware, and to all distributees, also providing a copy of the final accounting to any distributees whose interests were affected