Detailed Answer
This explains how to determine whether the money in a deceased person’s bank account (and other personal property) falls under New York’s informal “small estate” threshold of $20,000 so you can pursue the simplified process rather than formal probate. This is a general guide—your facts may change the result. This is not legal advice.
What the $20,000 limit generally means in New York
In New York the small‑estate procedures apply only to certain personal property (cash and personal effects), not to real estate. The practical effect: if the decedent’s probate‑estate personal property in New York totals $20,000 or less, you may be able to use a simplified filing or an affidavit process to collect those funds. Whether a particular bank account counts toward the $20,000 depends on how the account is owned and whether it already passes outside the estate (for example, by payable‑on‑death (POD) designation or joint ownership with survivorship rights).
Which accounts count toward the $20,000
- Solely‑owned accounts in the decedent’s name usually count as part of the estate and are aggregated for the $20,000 limit.
- Accounts titled with a POD/TOD beneficiary, or accounts that pass automatically to a named beneficiary, generally do NOT count as estate assets because they transfer outside probate.
- Joint accounts require careful review. If the account is joint with rights of survivorship, many banks and New York law treat the surviving joint owner as the full owner immediately, and that account may not be part of the probate estate. If ownership is truly “in common” or a contribution dispute exists, the account may be part of the estate.
- Trust accounts, retirement accounts, and life insurance with designated beneficiaries usually do not count as estate assets for the small‑estate threshold—each is governed by its own rules.
Step‑by‑step: How to confirm whether the account(s) put you under $20,000
- Collect documents you already have. Look for recent bank statements, check registers, tax returns, and online account logins. These show balances and account titles.
- Identify account ownership details. Check the account title on statements (e.g., “John Doe,” “John Doe POD Jane Doe,” or “John Doe & Mary Doe”). The title often indicates whether the account passes by beneficiary designation or is joint.
- Request official balance information from the bank. Contact each bank where you think the decedent held funds. Ask for the ledger balance as of the decedent’s date of death and for copies of the account signature card and beneficiary designation forms. Banks typically require a certified copy of the death certificate and photo ID from the person asking.
- Ask the bank whether the account has a POD, survivorship, or trustee designation. If the bank confirms a POD beneficiary or survivorship joint owner, the money may not be part of the small estate total.
- Aggregate only probate‑estate assets. Add up balances of accounts that are solely owned and otherwise part of the probate estate. Do not include accounts that pass automatically to a beneficiary or surviving joint owner.
- Confirm whether any other personal property in New York counts. The $20,000 threshold generally applies to personal property (bank accounts, stocks in the decedent’s name, household goods, etc.). Include those items if they are part of the probate estate.
- Contact the local Surrogate’s Court clerk or review court self‑help materials. Court clerks can explain the local small‑estate process and forms and will tell you what documentation banks require to release funds via the small‑estate procedure.
Practical tips about what banks will require
Banks differ. Even if the estate qualifies under the $20,000 threshold, many banks will not release funds until you present one of the following (examples):
- A small‑estate affidavit or court‑issued order from the Surrogate’s Court recognizing you as the person entitled to the funds;
- Joint owner signature (if joint account);
- A beneficiary claim form if the account is POD and the bank recognizes that beneficiary; or
- Letters testamentary/letters of administration if the estate does not qualify for small‑estate treatment or if the bank has a higher internal threshold.
What to do if the total is over $20,000
If the probate‑estate personal property in New York exceeds $20,000, you generally must open a formal probate/administration in Surrogate’s Court and obtain letters testamentary (if there’s a will) or letters of administration (if there’s no will). Those letters let banks and other institutions legally release money to the appointed fiduciary.
Common pitfalls and cautions
- Don’t assume account titles shown online are complete—banks’ internal records (signature cards and beneficiary forms) control.
- Some accounts appear joint but were funded by only one person; banks may treat these differently if there is a dispute.
- The $20,000 figure and which assets count are technical. If creditors exist or unclear ownership appears, more formal probate may be required even when the balance is small.
- Banks and county Surrogate’s Courts sometimes have slightly different procedures. Always verify local rules with the county Surrogate’s Court clerk.
Where to get forms and local guidance
Start with your county Surrogate’s Court website or the statewide New York Courts self‑help pages for estate administration and small estates. Court clerks can tell you which small‑estate affidavit or short form the court accepts and what certified documents the bank will need.
Helpful Hints
- Get multiple certified copies of the death certificate early—banks and other institutions will ask for them.
- Ask each bank to give you the balance as of the date of death in writing; banks sometimes charge a fee for historical balance statements.
- Ask the bank whether a POD, TOD, or joint‑survivorship designation exists; request a copy of the beneficiary designation or account signature card.
- Check for other assets that might push the total over $20,000: investment accounts in the decedent’s name, cash, or personal property of value located in New York.
- Some banks have lower internal thresholds and will require a court order even if the estate total is under $20,000—confirm the bank’s policy in writing.
- If you cannot find account information, review the decedent’s mail, email, tax returns, and check canceled checks to locate unknown banks or accounts.
- If ownership is unclear or multiple heirs disagree, consult an attorney before using a small‑estate affidavit—mistakes can lead to personal liability for released funds.
- If you want to proceed without a lawyer, call the Surrogate’s Court clerk for the county where the decedent lived and ask for the small‑estate procedure or affidavit forms and the exact documentation banks require.
Disclaimer: This article provides general information about New York estate procedures and is not legal advice. For guidance on a specific case, consult an attorney or the local Surrogate’s Court clerk.