How to Probate a Small Estate in Missouri

 

Small estates don't have to go through probate to be distributed. Find out what Missouri's limit is for this small estates procedure.

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Small Estate Limits for Missouri

In Missouri, there's no Affidavit procedure available for small estates. There is a summary probate procedure available for estates that are less than $40,000, not counting liens or encumbrances (like a mortgage).

Mo. Rev. Stat. 473.097

 

 

What's Included in valuing the estate?

Not everything a person owns is part of their "Estate" for probate purposes.

If you're wrapping up the estate of a Missouri resident who died with an estate that's worth less than a certain dollar amount, you won't have to go through a formal probate court proceeding. 

It doesn't matter whether or not the deceased person left a will; what matters is the value of the assets left behind. If the estate's value is under the "small estates" limit in Missouri, you can take advantage of a simplified probate procedure, often called a "summary probate." Instead of having a court hearing in front of a judge, you may need only to file a simple form or two and wait for a certain amount of time before distributing the assets.

In some states, it can be even easier: Inheritors can use a simple affidavit to claim assets. (An affidavit is a statement you sign in front of a notary, swearing something is true.) If you live in one of those states, you just have to wait a required period of time, then sign a simple, sworn statement that no probate proceeding is happening in your state and that you are the person entitled to inherit a particular asset--a bank account, for example. 

Adding it up, what's in, what's not

When you are trying to determine whether or not an estate's value is below the Missouri small estates limit, the first thing to do is make a list of the assets. A simple spreadsheet or list will do.

Not everything a person owns counts, though.

Include only the things that pass to heirs and beneficiaries by will or, if there's no will, by Missouri intestacy laws, which determine who inherits if there is no will.

Don't count:

  • assets that are held in joint tenancy,
  • retirement plans,
  • payable-on-death (POD) bank accounts,
  • real estate transferred by a transfer-on-death deed, or
  • transfer-on-death brokerage accounts.

These assets don't count towards the small estate limit because they pass to the named beneficiaries regardless of what a will (or state intestacy law) says. If a person had a life insurance policy with a named beneficiary, the insurance proceeds won't count either.

Loans on the property?

Some states also don't count the amount of money owed on a car, or a house, while others count the fair market value of an asset, even it is subject to a loan or a mortgage.

For example, say Donald died in Missouri and owned the following assets:

  • A checking account with $2,345
  • A savings account with $2,567
  • A car with a blue book value of $6,500 (and no loan)
  • An IRA with $32,000, naming his son and daughter as beneficiaries
  • A life insurance policy worth $15,000, naming his son and daughter as beneficiaries

To figure out whether Donald is above or below Missouri's small estate limit, only the bank accounts and car would be counted, for a total of $11,412.

His IRA and the life insurance proceeds aren't counted towards the limit because they will go to his beneficiaries directly. The value of the car is included because he doesn't owe money on it.

That means the value of Donald's estate is under the Missouri small estates limit. His son and daughter, who inherit his assets under Missouri's intestacy laws because Donald had no will, would follow the small estates procedure.

Options for Small Estates in Missouri

Missouri offers a couple of methods to simplify the probate process depending on the size and complexity of the estate. These are the "Small Estate" procedure and "Refusal of Letters". However, remember to verify this information and consult with a probate attorney, as laws might have changed since my knowledge cut-off in September 2021.

  1. Small Estate Procedure

    For estates valued at $40,000 or less (as of 2021), Missouri provides a simplified probate process called the small estate procedure. Here's a simplified step-by-step breakdown:

    1. Wait at least 30 days after the decedent's death.
    2. Prepare an affidavit (sworn statement). The affidavit should include a description of the property, the value of the property, the names of the heirs and their relationship to the deceased, and other details.
    3. File the affidavit with the probate court.
    4. If approved by the court, the court issues a decree showing the right of the affiant to receive the property.
    5. Show the decree to any person, corporation, or bank that has control of the property, and they should turn it over to the person with the decree.

    This process avoids the need for a full-blown probate process, which can involve multiple court hearings, complex paperwork, and a significant investment of time. This procedure is outlined in Missouri Revised Statutes Section 473.097.

  2. Refusal of Letters

    In some circumstances, if the estate is small enough, the court may find that it doesn't need to be administered and will refuse to grant letters (official court documents naming an estate's personal representative). This effectively ends the probate process and allows for the distribution of assets.

    1. File a petition requesting refusal of letters. This can be done by an heir, the surviving spouse, or any creditor.
    2. The court may order an appraisal of the estate to verify its value.
    3. If the court approves the petition, it will issue an order directing the distribution of assets without further administration.

    This option, according to Missouri Revised Statutes Section 473.090, allows for avoidance of most of the traditional probate process, which can be lengthy and costly.





Jurisdictional relevance: ST

There are versions of this article for each State.