There is good news for those who may be looking to utilize the small estate option in Tennessee. Recently, Governor Bill Haslam signed into law an amendment to the Small Estate Act. The amendment increases the size of an estate that may utilize a small estate affidavit from $25,000 to $50,000. This increase will allow even more individuals to look toward the small estate option.
So what are the benefits of a small estate administration? First and foremost, the small estate administration is a much faster process than fully probating the estate. While fully probating an estate will take at least four months, a small estate can often be opened and closed in the court within the same day. This allows any creditors to be paid faster and beneficiaries to receive their portion faster as well. Also, another benefit is that attorney’s fees will be much lower with a small estate. Because a small estate is a more streamlined process, there will not be as much legal work that needs to be done by an attorney.
You may be wondering what limitations are put on a small estate? There are two main qualifications regarding the small estate administration in Tennessee. The first qualification is that the value of the decedent’s property must not exceed $50,000. Second, the Small Estate Act requires that the property must be comprised of personal property individually held by the decedent at the time of passing. Personal property does NOT include any real property, or real estate in other words. If the decedent’s estate is valued at more than $50,000 or if the estate includes real property, then a small estate administration cannot be used. Rather, the estate would likely have to be fully probated.