Small Estate Limits for New Hampshire
In New Hampshire, there is no Affidavit procedure.
There is a summary probate procedure available if there is a Will, and that Will names the surviving spouse, or, if no spouse, an only child, or, if no child, a parent as sole beneficiary, and the beneficiary is also appointed as administrator: If there is no Will, but the same people are the sole heirs and are appointed as administrator. The administrator must file between six months and one year after the death and the probate court must approve the petition.
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 New Hampshire 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 New Hampshire, 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 New Hampshire 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 New Hampshire 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 (TODD) or Ladybird Deed
- 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 New Hampshire 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 New Hampshire'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 New Hampshire small estates limit. His son and daughter, who inherit his assets under New Hampshire's intestacy laws because Donald had no will, would follow the small estates procedure.
Simplified Probate Options In New Hampshire
New Hampshire has a few options for simplifying the probate process. This included the option for a "small estate" procedure, and an "informal probate" procedure. However, please note that laws can change, and you should verify this information and consult with a probate attorney to understand the current laws and procedures.
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Small Estate Procedure
The small estate procedure, or affidavit procedure, can be used when the deceased person's estate is worth $10,000 or less. Here's a simplified step-by-step breakdown:
- Wait 30 days. You can't use the affidavit procedure until 30 days after the person dies.
- Prepare an affidavit. The affidavit should include the details about the deceased person, a description of the property to be transferred, the names of the heirs and their relationship to the deceased person.
- Sign the affidavit under oath.
- Present the affidavit to the person or institution having custody of the property.
This process helps you avoid the regular probate process, which includes court hearings and a lot of paperwork. This procedure is described in New Hampshire Revised Statutes Section 553:32.
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Informal Probate Procedure
New Hampshire also has an informal probate process for some estates. This process is quicker because it doesn't involve a judge or court hearings. Here are the steps:
- Submit an application for informal probate. This includes the application form, death certificate, will (if there is one), and other necessary forms.
- The probate registrar will review the application. If everything is in order, they'll issue a statement of informal probate and appointment.
- The appointed personal representative can then gather the deceased person's assets, pay their debts and taxes, and distribute what's left to the people who inherit it.
The informal probate procedure avoids the lengthy court hearings and scrutiny that comes with formal probate. This procedure is described in New Hampshire Revised Statutes Section 553:2 and following.