Detailed answer — how to determine whether the account is within the $20,000 limit under New Mexico law

This is an overview of practical steps and legal principles to help you decide if the small‑estate affidavit or summary procedure is available. This is not legal advice; consult a New Mexico attorney for help specific to your situation.

1. Understand what the “$20,000” threshold generally means

New Mexico provides simplified probate methods for small estates. Those methods look at the decedent’s personal property value (movable property and most financial accounts). If the aggregate value of the personal property that must pass through probate is at or below the statutory small‑estate limit, you may use the simplified procedure rather than full probate.

2. Identify which assets count toward the small‑estate limit

• Include: money in the decedent’s individual bank accounts, cash, personal belongings, and other personal property that does not pass automatically.
• Exclude or treat differently: real property (real estate may be treated separately), assets held in a trust, accounts with beneficiary designations (payable‑on‑death/”POD”), joint accounts with rights of survivorship (may pass automatically to the surviving co‑owner), many retirement accounts and life insurance proceeds that name a beneficiary (these typically pass outside probate).
• Be careful: even if an account looks joint, banks sometimes treat joint accounts differently for probate and tax purposes — verify the account type with the bank and check account paperwork.

3. Determine the exact balances and ownership types

To figure out whether the estate fits the small‑estate limit, you must obtain accurate balances and ownership details for each account:

1. Collect the decedent’s recent bank statements, online account access, and checkbooks.
2. Contact the bank(s) and request current balances and account title information. Banks will often require a certified death certificate before releasing details. Ask whether the account is titled in the decedent’s sole name, jointly, or as POD/”in trust for.”
3. If you cannot obtain documents through normal channels, the court or an attorney can advise about subpoenas or formal discovery to get account records.

4. Add up the values that must go through probate

Make a short inventory listing each personal asset that does not pass automatically (account title in sole name, personal property, cash, etc.) and the current value of each item. Sum those values. If the total is at or below the small‑estate threshold, the simplified process may be available.

5. Consider timing and liabilities

Account balances can change (checks, automatic payments, fees). Use the bank balance near the date you will file the small‑estate affidavit. Also remember that creditors may have claims against the estate; the simplified process has procedures for notice and creditor claims to protect heirs and the estate.

6. Watch out for common traps that push you over the limit

• Overlooking small accounts or cash on hand.
• Assuming joint accounts always pass outside probate — sometimes they do not, depending on evidence of intent and how the account is titled.
• Failing to include unpaid wages, final reimbursements, or tax refunds if those must be paid to the estate.

7. What to do if you discover the total is under the threshold

1. Gather required documents: certified copy of death certificate, photo ID for the person seeking to use the small‑estate process, account statements, and any forms the court or bank requires.
2. Prepare and file the small‑estate affidavit or summary procedure paperwork required by New Mexico courts, or deliver the affidavit to the bank if the bank accepts it for release of funds. Banks have their own policies about what they will accept; some require a court filing first.
3. Follow the statutory steps for notice to possible creditors or other heirs, if required by law.

8. Where to find the controlling law and official guidance

New Mexico’s probate statutes and local court rules govern small‑estate procedures. For general state guidance, see the New Mexico Courts self‑help pages on probate and small estates: https://www.nmcourts.gov/self-help/probate/. For the official statutes, consult the New Mexico Statutes (Title 45 — Probate) available from the New Mexico Legislature’s website: https://www.nmlegis.gov/. If you plan to use a bank affidavit option rather than a court filing, check the specific bank’s requirements before you file.

Note: The precise dollar amount for the small‑estate threshold and the exact procedure can change. Confirm current statutory thresholds and procedures before relying on them.

9. When to get a lawyer

If you cannot determine account ownership, if the estate assets are close to the limit, if there are disputes among heirs, if the decedent had complex assets (trusts, real estate, retirement accounts), or if the bank refuses to accept the small‑estate affidavit, consult a New Mexico probate attorney. An attorney can also request a court determination if banks or other institutions refuse to follow the affidavit.

Helpful hints

• Start by locating the latest bank statements and online logins — they often show current balances and account titles.
• Request a bank verification letter stating the account balance and title; some banks will provide this to someone with proper identification and a death certificate.
• Check whether the account has a beneficiary designation or is a joint account — those often avoid probate.
• Include small cash amounts and overlooked assets (refunds, dividends) when totaling the estate value; small amounts add up fast.
• Contact the bank first to learn what paperwork they require to release funds under a small‑estate affidavit — banks differ.
• If the account is slightly over the limit, ask a lawyer whether litigation or a court‑supervised simplified administration might still be faster or cheaper than full probate.
• Keep careful records: certified death certificate copies, communications with banks, and a dated inventory of assets will help if the estate is audited or disputed.