When a person passes away, they leave behind real estate, personal property, and financial assets that must be properly distributed. This settlement process involves assets and liabilities, final taxes and fees, settling debt, and distributing assets to beneficiaries. There are two primary classifications of estate settlements in New York: large estates (those with personal assets worth more than $50,000, as well as real estate) and small estates (those worth less than $50,000 in personal property). This post will discuss the benefits of settling a small estate in New York—known as voluntary administration—and the path to completing the process.

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The Benefits of Small Estate Settlement in New York

When it comes to settling one's affairs, size does matter. In most cases, the less someone owns, the easier and less expensive it is to sort things out. There are several benefits to settling a small estate in New York:

• Lower fees: Probate fees can be costly, particularly for larger estates. Conversely, smaller estates may not have to pay these fees at all.
• Faster settlement: A small estate can be settled more quickly than a larger one, saving family members time and money.
• No probate: In New York, estates worth less than $50,000 may not have to go through probate, and can go through voluntary administration instead.
• Fewer delays: Even if an estate does have to go through probate, a small estate is less likely to face delays than a large one. This is good news for beneficiaries who are waiting on their inheritance.

Affidavit of Voluntary Administration

The first stage of estate settlement in New York for small estates usually involves the estate executor—known as the voluntary administrator—filing an affidavit of voluntary administration, along with the death certificate and the will, with the local New York Surrogate Court. The filing fee is $1.

Once voluntary administration is granted, the executor can begin compiling the assets of the estate and distribute them. The grant of voluntary administration also gives the executor the authority to access the deceased’s bank accounts and any other financial documentation. Basically, voluntary administration is a simplified form of probate, but much cheaper and quicker.

Final Accounting and Distribution

The last stage of estate settlement is known as the full or final accounting. The estate executor usually files an accounting summary with the Surrogate's Court during this stage. This accounting must include all receipts and expenses paid for funeral and burial, income received, bank account balances, stock and bond certificates, and real estate. Throughout the proceedings, it is vital that the fiduciary keep and retain good records and clearly report all transactions to the beneficiaries.

Although small estates are more manageable than large ones, estate planning in New York is still complex. ClearEstate can help you with all of the above tasks, freeing up your time and energy so you can focus on other obligations. We offer free consultations with an estate professional. Contact us to schedule yours today!