If someone close to you dies with $50,000 or less in assets, you may not need to go through probate. Wisconsin allows you to collect and transfer these assets with a form called a “Transfer by Affidavit”. The rules are in Wis. Stat. § 867.03 and, if used correctly, this process can save your family months of court involvement. Collins Law Firm can help families in Milwaukee, Wauwatosa, and Pewaukee determine whether this is the right choice for them.
The $50,000 Rule
The dollar limit is the whole ball game. If a decedent’s Wisconsin property subject to administration does not exceed $50,000 in gross value, an affidavit is available. This figure is measured before debts are subtracted, and it only counts probate assets, rather than everything that the person owned.
Some property never enters the total:
- Jointly owned bank accounts and vehicles usually go directly to the surviving owner.
- Life insurance or retirement accounts with a named beneficiary also go directly to that person.
- Assets already in a living trust are managed by the trust, not by the affidavit.
An estate that looks large on paper can still qualify if you strip out the non-probate items.
Who Is Allowed to Sign It
Not just anyone can use this form. Wisconsin limits it to four categories of people: the heir of the deceased, the trustee of a revocable trust established by the deceased, a person named in a will to act as a personal representative, or someone who was a guardian of the deceased at the time of death. If you do not fall into one of these categories, you cannot sign.
Signing also carries weight. By accepting property under the affidavit, you take on a legal duty to pay the deceased’s debts before distributing anything to beneficiaries. If you skip that step, the liability can fall on you personally.
Real Estate Adds Extra Steps
Real property is where people stumble. You can transfer a house or land by affidavit, but only if you record it with the county Register of Deeds. And a person acting solely as a will’s nominee personal representative cannot transfer real estate in this way at all.
There’s also a waiting period. When real estate is involved, you must give the deceased’s heirs written notice at least 30 days before recording. Banks and other asset holders can also wait 30 days after receiving the affidavit before releasing personal property.
When It Makes Sense and When It Doesn’t
The affidavit is valid for modest estates: a checking account, a car, and a small brokerage account. It is faster and cheaper than probate.
It is the wrong tool when the numbers climb past $50,000, when creditors are fighting over what’s left, or when family members disagree about who inherits. Wisconsin offers other options in these cases, including a summary settlement under § 867.01 for estates with surviving spouses or minor children, and a summary assignment under § 867.02 for small estates with creditor claims. The State Bar publishes an official Transfer by Affidavit form, although the form is easier to complete than to complete correctly.
Talk to Collins Law Firm Before You Sign
The affidavit looks simple, and that is exactly what gets people into trouble. Signing it wrong may cause you to owe money you did not expect, or delay a transfer for months. Before filing anything, let us confirm that the estate actually qualifies, and that you are the right person to sign it.
Collins Law Firm works with families across Wauwatosa, Pewaukee and the greater Milwaukee area on probate and estate planning. Contact us to review your estate, protect what your loved ones left behind, and handle all the paperwork correctly the first time around.