How to confirm a bank account is small enough to use Minnesota’s small estate process

Short answer (FAQ): To determine whether a decedent’s bank account is under the monetary limit for Minnesota’s small estate affidavit, you must (1) determine the account balance on the date of death, (2) determine whether the account is a probate asset (or a non‑probate transfer such as POD/TOD, jointly owned, or trust property), and (3) add any other personal property that must be counted toward the small‑estate threshold. If the total value of the probate personal property falls at or under the statutory threshold, the small estate process may be available. For the controlling statute, see Minnesota’s small‑estate collection law: Minn. Stat. § 524.3-120. This is not legal advice.

Detailed answer — step by step

Start with two basic questions:

1. What was the account balance on the date the person died?
2. Is that account a probate asset (part of the estate) or a non‑probate account?

1. Find the balance as of the date of death

Banks keep transaction histories and can provide a specific balance for a past date. To get an accurate number:

• Locate the most recent bank statements and online account history for the decedent.
• Contact the bank’s probate or estate department and request a certified “balance as of date of death” (sometimes called a ledger balance or historical balance). Many banks will produce a written statement for probate or small‑estate purposes when you provide a certified copy of the death certificate and proper identification.
• Ask the bank to identify any pending deposits, outstanding checks, holds, liens, or administrative freezes that affect the usable balance. A bank’s ledger may show transactions posted after death that still affect the available funds.
• If the account is part of an online banking system, download transaction history and statements to confirm the balance and recent activity.

2. Determine whether the account is a probate (countable) asset

Not every bank account belongs to the probate estate. Common non‑probate categories include:

• Payable‑on‑death (POD) / Transfer‑on‑death (TOD) accounts — proceeds go directly to the named beneficiary and typically do not count as part of the probate estate.
• Joint accounts with right of survivorship — the surviving joint owner usually takes the funds immediately and the account often is not a probate asset.
• Accounts owned by a trust — funds titled in a living trust are not part of probate.
• Accounts with an individual designated as beneficiary by contract (e.g., certain retirement plans or insurance) — these are often excluded from probate.

Ask the bank to tell you the account’s title and any beneficiary or joint‑owner designations. If the decedent left written instructions or account paperwork that show POD/TOD wording, that paperwork controls the account transfer and usually removes the account from the probate estate.

3. Add other personal property that must be counted

The small estate process typically looks at the total value of the decedent’s personal property that is subject to administration. That may include:

• Other bank and brokerage accounts that are probate assets.
• Cash, personal property, and certain account receivables.

It usually does not include real estate, assets held in trust, or property with named beneficiaries that pass outside probate. Check the statute and the probate court’s guidance for what counts in Minnesota.

4. Compare the total to the statutory limit

Once you have (A) the decedent’s probate account balances as of the date of death and (B) the other personal property that counts toward the small‑estate threshold, add those values and compare them to Minnesota’s threshold for the small estate collection process under Minn. Stat. § 524.3-120. If the total is within the statutory limit, you may be eligible to use the affidavit or summary collection procedure described in that provision. If the total is above the limit, or if the estate is complicated (creditors, unknown heirs, disputed ownership), the formal probate process may be necessary.

5. Practical tips if you hit a snag

• If the bank will not provide a historical balance without a court order, ask whether they will provide a statement of account history after you present a certified death certificate and identification.
• If accounts are frozen or there are multiple potential claimants, contact the county probate court clerk for instructions; some courts provide small‑estate forms and guidance.
• If you can’t locate account paperwork, search decedent’s files for bank mail, check stubs, tax returns, or online account access. Contacts such as the decedent’s employer (for retirement accounts) or financial adviser can help identify assets.

Hypothetical example

Maria dies. She had one checking account titled only in her name with a bank ledger balance of $12,300 on the date of death and a savings account with $7,200. She also had a POD savings account with $5,000 payable to her sibling. To see if she qualifies for the small estate process, you would:

1. Get certified balances for the checking and savings accounts as of the date of death.
2. Confirm the POD account is payable directly to the sibling (non‑probate) and therefore not counted.
3. Add the probate accounts: $12,300 + $7,200 = $19,500. Compare $19,500 to the statutory threshold.

If the threshold is met, the person entitled to payment could use the small estate affidavit (or similar collection procedure) under Minnesota law to collect those funds without formal probate. See Minn. Stat. § 524.3-120 for the statutory procedure.

Helpful hints

• Gather bank statements and account paperwork first — they answer most questions.
• Ask the bank for a certified historical balance and the account title wording.
• Confirm whether the account is POD/TOD, jointly owned, or in a trust — these usually avoid probate.
• Count only probate personal property when checking the small‑estate threshold; check the statute or court guidance about what to include or exclude.
• Contact the county probate court clerk for small‑estate forms and procedural instructions; court staff can often explain filing steps.
• If the bank refuses to release account information, a short consultation with a probate attorney can clarify next steps; an attorney can also prepare the small‑estate affidavit if the situation is borderline or contested.
• Document every request to the bank (dates, names, and copies of emails/letters) so you have a record if issues arise.

Important: This article explains general steps and points you to the Minnesota small‑estate statute for reference: Minn. Stat. § 524.3-120. It is educational only and does not constitute legal advice. If the estate is complicated, contains disputes, or the bank or other parties raise questions, speak with a Minnesota probate attorney or the probate court clerk for guidance tailored to your situation.