Settling Small Estates (NM)

Requirements

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

• The entire probate estate has a gross value <$50K
• 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
2. It can be helpful to attach a copy of the death certificate and the will (if one exists)
3. Obtain possession of estate assets by presenting the affidavit to current custodians (cannot be used to collect real estate)
4. Settle the estate in the normal way (pay debts, distribute remaining assets)
5. If you are transferring a vehicle, submit Form MVD-10013 to the DMV
6. If everything goes smoothly, no court involvement will ever be required

Requirements

To use the homestead transfer process, the following conditions must be true:

• The spouses owned the homestead together as community property
• If there is a will, it leaves the homestead to the surviving spouse
• At least 6 months have passed since the death
• All debts have been paid
• The property is assessed at <$500,000 for taxation purposes
• No petition has already been made to the court to officially appoint a personal representative

Process

To transfer the homestead to the surviving spouses, submit to the county clerk an Affidavit of Surviving Spouse.
(This form is from Sandoval County: either insert the property's actual county, or check with the local clerk to see if they have a preferred form)

Note that in 2023, the amount of this homestead exemption was raised to $150K.

Requirements

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

1. Any family and personal property allowances
2. Estate administration expenses
3. Reasonable and necessary medical and hospital expenses of the last illness
4. Reasonable funeral expenses

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 Probate of Will and Informal Appointment (Form 4B-302) or, if there is no will, an Application for Informal Appointment (Form 4B-301)
2. Upon approval, the court will issue you Letters of Administration
3. At the same time, or later when you are ready, request a summary administration from the court, submitting an Estate Inventory (Form 4B-601) to the court (consider attaching the EstateExec Inventory Report), showing that the requirements have been met
4. Use your "Letters" to collect estate assets, distribute them according to the requirements list
5. Prepare a Final Accounting (Form 4B-602) (consider using the EstateExec Accounting Report)
6. Send a copy of a Closing Statement (Form 4B-702) to all unpaid creditors and to all distributees, including the Final Accounting for any distributee whose interest was affected
7. Submit the Closing Statement to the court