People often hope to avoid probate by utilizing an affidavit for collection of Small Estate by the distributee, a truncated probate procedure authorized by Arkansas law. That law authorizes the collection of estates valued at less than $100,000 without a full probate. There are some potential pitfalls to avoid, however,
- Beneficiary Deeds: Utilizing a beneficiary deed does not help reduce an estate to the $100,000 threshold, because it is property owned at death.
- Escrow: When real estate is involved in the estate, all proceeds from the sale must be held in escrow until the 3 month publication period elapses.
- Title Insurance: Some title underwriters will not insure parties who claim ownership pursuant to the small estate procedure, an obvious problem for the future marketability of the property.
The point to remember is that while the estate procedure is often a desirable shortcut, there are some traps for the unwary. To learn more, contact one of our associates at Capstone Pioneer today.
And don’t forget to download our free ebook, “What to Expect at Closing” to guide you safely and successfully through the closing process for your next home.