Short answer

Look at the account balance(s) on the date of death, add other probate‑type personal property that will pass through probate, subtract valid liens or encumbrances against those assets, and exclude assets that pass outside probate (for example, accounts with a payable‑on‑death (POD) designation or accounts held jointly with right of survivorship). If the total probate personal property available to distribute to heirs is $20,000 or less, you may be able to use Michigan’s affidavit (small‑estate) collection procedure instead of a full probate case. Michigan’s affidavit/collection rules are found at MCL 700.3801 et seq. (see: https://www.legislature.mi.gov/mileg.aspx?page=GetObject&objectname=mcl-700-3801).

Step-by-step: How to determine if the account is under the $20,000 limit

1. Confirm the exact account balance as of the date of death.

   Request a copy of the decedent’s bank statement covering the date of death or ask the bank for a ledger balance on that date. Banks can provide account histories or a certification of the balance on a given date if you provide a death certificate and proper identification.

2. Identify other assets that would be part of the probate estate.

   For the small estate calculation, include personal property that would be distributed through probate, for example: other bank accounts titled solely in the decedent’s name, cash, household goods and personal effects, some motor vehicles (if they become part of probate), and some stocks or bonds if they are payable to the estate.

3. Exclude assets that pass outside probate.

   Don’t count assets that transfer automatically by law or contract: assets titled jointly with right of survivorship (which typically pass to the surviving joint owner), accounts with POD or transfer‑on‑death (TOD) beneficiaries, life insurance or retirement accounts that name a beneficiary other than the estate, and real property held in trust or with a beneficiary deed. Verify how each item is titled or payable.

4. Account for liens and debts secured against personal property.

   If a probate asset has a valid lien (for example, a loan secured by personal property), the lien usually reduces the net value available to distribute. Deduct valid secured claims from the gross value when you calculate whether the net probate personal property is $20,000 or less.

5. Calculate the net personal property subject to probate.

   Add the balances and values of all probate personal property, subtract secured claims and liens, and do not include non‑probate transfers. If the net total is $20,000 or less, the affidavit procedure may apply.

6. Confirm with the bank and the probate court.

   Even if your calculations show the estate is under $20,000, banks have internal policies and risk checks. Ask the bank whether it accepts a small‑estate affidavit and what documentation it requires. Also contact the county probate court clerk or review Michigan’s small‑estate statutes and local court forms so you know the court’s filing and documentation requirements. Michigan’s collection‑by‑affidavit rules are in MCL 700.3801 et seq.: https://www.legislature.mi.gov/mileg.aspx?page=GetObject&objectname=mcl-700-3801.

Common issues and special situations

• Joint accounts: If a bank account was held jointly with right of survivorship, the surviving joint owner usually gets the funds outside probate. Banks sometimes still require documents; confirm the bank’s procedures.
• POD or beneficiary designations: Accounts with POD/TOD wording or named beneficiaries pass outside probate and normally are not part of the $20,000 calculation.
• Uncleared deposits and pending withdrawals: Check the ledger or available balance on the date of death. Pending deposits or holds may affect what the bank will release.
• Multiple small accounts: Add all probate‑asset accounts together when testing the $20,000 limit; one account may be small but combined assets can exceed the limit.
• Assets titled in a business or trust: Those may not be probate assets. Review titles and agreements.

Hypothetical example

Example: The decedent had a checking account with $9,200 and a savings account with $6,800 (both solely in the decedent’s name). The decedent also owned household furnishings worth about $2,500 and a car that will pass outside probate to a named beneficiary. Total probate personal property = $9,200 + $6,800 + $2,500 = $18,500. Because the net probate personal property is under $20,000, the family could likely use Michigan’s affidavit/collection procedure to collect the bank accounts instead of opening a full probate estate—subject to the bank’s acceptance of the affidavit and any creditor issues.

How to proceed if you’re under the $20,000 limit

1. Obtain certified copies of the death certificate.
2. Gather account statements and documents showing how each asset is titled.
3. Complete the Michigan affidavit/collection form required by statute and the court (MCL 700.3801 et seq.).
4. Present the affidavit, death certificate, and ID to the bank and any other holders of probate personal property.
5. If the bank refuses or if title is disputed, contact the probate court clerk for guidance or consider talking to an attorney.

When to get legal help

Speak with a probate attorney if:

• you are unsure which assets are probate assets;
• the estate’s total value is close to $20,000 or there are liens or contested claims;
• a bank or other institution refuses to accept an affidavit; or
• the estate includes complicated assets (business interests, foreign accounts, or unclear beneficiary designations).

Helpful hints

• Get certified copies of the death certificate early — banks typically require them.
• Call the bank’s probate or fiduciary department and ask for their checklist for paying accounts after death.
• Request account balances and statements covering the date of death in writing so you have a paper trail.
• Look for beneficiary designations on retirement plans, life insurance, and transfer‑on‑death registrations; these usually avoid probate.
• Keep clear notes of phone calls (who you spoke with, date, and what they said) when dealing with banks and the probate clerk.
• When in doubt, confirm with the county probate court clerk — they can tell you whether the affidavit procedure is appropriate for your county and direct you to any local forms or steps.