Administration of Small Estates in New York?
Full Question:
Answer:
Generally, it is necessary to go through probate. However in the case of smaller estates, before the deceased's property can be legally distributed it must undergo a less formal procedure under the general supervision of the probate court. Small estate administration is an alternative to a formal probate of an estate when the assets, liens, and encumbrances of the estate are under a certain statutory amount. Small Estate laws were enacted in order to enable heirs to obtain property of the deceased without probate, or with shortened probate proceedings, provided certain conditions are met. Small estates can be administered with less time and cost. Small estate procedures may generally be used regardless of whether there was a will. The administration of the estate may be commenced a certain time after death, and the appointment of a personal representative is made. An inventory and appraisal must be filed with the court. The personal representative, after giving any required notice to creditors, may immediately disburse and distribute the estate to the entitled persons. A verified statement to close and a full account in writing must be filed with the court and copies served on all distributees and creditors whose claims are neither paid nor barred.
Under New York statute, where an estate is valued at $30,000 or less, an interested party may, at any time after the death of the decedent, file a petition to become a voluntary administrator of the estate.
Following are the New York Statutes:
SURROGATE'S COURT PROCEDURE ACT
ARTICLE 13. SETTLEMENT OF SMALL ESTATES WITHOUT COURT
ADMINISTRATION
NY CLS SCPA § 1301.
In this article:
1. A small estate is the estate of a domiciliary or a non-domiciliary who dies leaving personal property having a gross value of [fig 1] $ 30,000 or less exclusive of property required to be set off under EPTL 5-3.1 (a) (1), (2), (3), (4) and (5).
2. A voluntary administrator is a person who qualifies and undertakes to settle the estate of the decedent without the formality of court administration as hereinafter provided.
NY CLS SCPA § 1302. Kinds of property
This article is not applicable to any interest in real property in this state owned by a decedent, but his ownership of an interest in real property shall not prevent the use of this article in administering his personal property.
NY CLS SCPA § 1303 says about the Persons who may become a voluntary administrator
(a) If the deceased dies intestate, the right to act as a voluntary administrator is hereby given first to the surviving adult spouse, if any, of the decedent and if there be none or if the spouse renounce, then in order to a competent adult who is a child or grandchild, parent, brother or sister, niece or nephew or aunt or uncle of the decedent, or if there be no such person who will act, then to the guardian of the property of an infant, the committee of the property of any incompetent person or the conservator of the property of a conservatee who is a distributee and if none of the foregoing named persons will act or if there are no known distributees within the categories listed above, then to the chief fiscal officer of the county except in those counties in which a public administrator has been appointed under articles eleven and twelve of this act. After the surviving spouse, the first distributee within the class of persons entitled or if no distributee will act or there are no known distributees within the class of persons entitled, then the chief fiscal officer of the county as above who makes and files the required affidavit, is authorized to act as voluntary administrator, or as successor voluntary administrator in the event of the death or resignation of the voluntary administrator before the completion of the settlement of the estate.
(b) If the deceased dies testate, the named executor or alternate executor shall have the first right to act as voluntary administrator, upon filing the last will and testament with the surrogate's court. If the named executor or alternate executor renounces or fails to qualify by filing the required affidavit within thirty days after the last will and testament has been filed in the surrogate's court, then any adult person who would be entitled to petition for letters of administration with will annexed under section 1418 of this chapter may file the required affidavit and have the right to act as voluntary administrator.
(c) No person other than one hereinbefore mentioned can become a voluntary administrator.
NY CLS SCPA § 1304. Summary procedure
1. When available. No waiting period after the death of the decedent is required.
The procedure prescribed in this article may be used after the decedent's death.
2. Bond. The voluntary administrator need not give a bond.
3. Affidavit. A person may qualify as a voluntary administrator by making and filing with the clerk of the court of the decedent's domicile, or in the case of a non-domiciliary, of the county in which his personal property is located, an affidavit in the form provided by the Official Forms appended to this act, and also a certified copy of the death certificate of the decedent.
4. Record. The clerk shall file the affidavit and assign it a number. The clerk shall enter each such proceeding in the records and indexes of the court. The clerk shall charge a fee of $ 1 for filing the affidavit. No order of the court or other proceeding shall be necessary. The clerk shall mail to each distributee who has not renounced his or her right to act and to each beneficiary mentioned in the affidavit other than the affiant, a letter or postcard notice of the proceeding under this article. The giving of such notice is not jurisdictional.
5. Furnishing evidence of qualification and authority. A short certificate of the court showing the filing by the voluntary administrator of the required affidavit, shall evidence his, her or its qualification and authority to act. The clerk may indicate on the certificate that it is valid only for a transfer or transaction as specified thereon. The voluntary administrator shall deliver a certificate to each debtor, transfer agent, safe deposit company, bank, trust company or other person holding or having custody, possession or control of any personal property of the decedent which the voluntary administrator seeks to reduce to possession or otherwise affect the title thereof.
NY CLS SCPA § 1309. General provisions
1. The use of this article in the settlement of a small estate without the formality of court administration is permissive and not mandatory.
2. As a matter of comity a debtor, transfer agent, safe deposit company, bank, trust company or person in this state holding personal property of a non-domiciliary decedent, may recognize a certified copy of an affidavit or of a short certificate of a judge or clerk of a probate court made under a statute of another state, providing for the settlement of small estates without administration, for the purpose of collecting or obtaining possession of an asset of a decedent in his state, provided that debtors, transfer agents, safe deposit companies, banks, trust companies or persons in such other state holding personal property of a domiciliary decedent shall, whether pursuant to statute or otherwise, recognize and pay or transfer his personal property pursuant to a short certificate of the court made under this article.
3. A debtor, transfer agent, safe deposit company, bank, trust company or person of another state, shall not be liable to any person in respect of any payment, transfer or delivery of personal property made to a voluntary administrator pursuant to such short certificate.
4. As used in this section, the word "state" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and the territories and possessions of the United States.
