Washington State law offers a way to avoid probate for settling estates that consist only of personal property, the net value of which does not exceed $100,000. Personal property includes items such as motor vehicles, bank accounts, stock and other investments. If the estate contains real property, such as a residence or land, this method is not available.
The personal property can be transferred to the appropriate beneficiary or beneficiaries upon the presentation of an affidavit that is defined in the statutes. The affidavit is a sworn statement that establishes the transfer meets the legal requirements.
The major requirements include:
- the total net value of the personal property must not exceed $100,000;
- the person executing the affidavit, known as a "claiming successor," must be entitled to receive the property according to the terms of the Will or, if there is no Will, by virtue of the laws of intestate succession. (The laws of intestate succession define which relatives would inherit the property.)
- 40 days have passed since the death of the decedent;
- no application or petition for appointment as a personal representative is pending or has been granted; and
- all debts of the decedent, including funeral and burial expenses, have been paid or provided for.
To illustrate how this method works, assume Bob, a widower, dies and is survived by his adult daughter. At the time of his death, Bob owned a $30,000 certificate of deposit in his name only at his local bank, and his Will provided all his assets are to go his daughter. As the claiming successor, she would present an affidavit that meets the requirements of the statutes to the bank requesting payment of the certificate of deposit.
This method of settling an estate can be very economical and effective with simple estates. However, sometimes it is advisable to settle the estate through probate when there are numerous creditors or other issues that can be "cleaned up" during probate. Some banks, investment firms and similar entities, especially those that are located out of state, insist on a personal representative being appointed by the court in a probate proceeding. Although the provisions for Small Estate Administration include provisions for compelling the transfer of personal property, it may be more practical to go the probate route.
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