What to gather for a small estate in Tennessee

An heir files a short sworn petition in the probate court. The clerk issues 'limited letters' that let that person collect only the personal property listed in the petition, pay the debts and distribute the rest. It cannot be used for real estate.

Limit

Up to $50,000

The person's probate personal property can be worth no more than $50,000 in total.

What counts

The value of the person's probate personal property only. Real estate, property held as tenants by the entirety or jointly with right of survivorship, and property payable to a beneficiary other than the estate are left out.

Waiting period

At least 45 days must pass after the death, as shown by the death certificate, with no petition for a regular personal representative filed in that time. The court may shorten the wait for good cause.

Who can use it

One or more of the person's competent adult heirs. If there is a will, and the will divides the property differently from intestacy law and the family wants the will followed, the personal representative named in the will files instead and the will is either probated as a muniment of title or filed with the clerk with the witnesses' affidavits.

Court or where to file

The court with probate jurisdiction (probate, chancery or circuit court, depending on the county) in the county where the person legally lived at death.

Notary

The petition is sworn. Some county clerks ask you not to sign until you are in front of the clerk.

Papers to attach

• Copy (county forms ask for a certified copy) of the death certificate
• Itemized list of the personal property covered, with the value of each item
• List of each creditor and the amount owed
• Written consents of all adult heirs and beneficiaries, if bond is to be waived and the petitioners are not the only heirs or beneficiaries
• The original will and the witnesses' affidavits, if there is a will
• TennCare release (Request for Release), which several county clerks require

Steps

1. Wait at least 45 days after the death (or ask the court to shorten it for good cause).
2. Get the county's small estate petition from the probate clerk and list the personal property, its value and the debts.
3. If bond is required, get written consents from all the adult heirs and beneficiaries, or arrange a bond with a corporate surety equal to the property's value. No bond is needed if the petitioners are the only heirs (or the only will beneficiaries).
4. File the sworn petition and death certificate with the probate clerk and pay the clerk's fees.
5. The clerk issues limited letters; give a certified copy to each bank or holder of the listed property.
6. Pay the debts and distribute the rest under the will or intestacy law.

Fee

Set by each county clerk under Tenn. Code Ann. 8-21-401; ask the clerk. Examples from county instructions: $100.50 (Davidson County, without a will) and $374.50 (Hawkins County), plus $5 to file a will.

Debts and responsibility

Anyone who receives property from the small estate stays liable for one year after receiving it, up to its value, to unpaid creditors, to anyone with a prior right to it, or to a personal representative appointed later. If property is distributed before TennCare is repaid what it is owed for medical assistance, both the personal representative and the person who received the property are liable to TennCare up to the value received. No notice to creditors is published, and creditors cannot file claims in a small estate. The personal representative and any surety are automatically discharged on the first anniversary of the limited letters.

What the bank or holder must do

A person who owes the person money or holds their property, or a transfer agent, must pay, transfer and deliver it to the personal representative when given a certified copy of the limited letters and a demand. Doing so releases them as if they had paid a regular personal representative, and they need not check how it is used. If they refuse, the property may be recovered or its delivery compelled in court, and the costs are charged against the person who wrongfully refused.

Forms

• Small Estate Petition for Limited Letters of Authority, Davidson County (Nashville) Circuit Court Clerk, Probate
• Instructions and Petition for Limited Letters for a Small Estate, Hawkins County Chancery Court

Law: Tenn. Code Ann. secs. 30-4-101 to 30-4-104, as rewritten by 2023 Tenn. Pub. Acts ch. 297

Source: Official page