Looking to Avoid Probate for a Small Estate in Wisconsin?

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Using a Small Estate Transfer Affidavit is a great way to skip the time consuming and often expensive probate process in Wisconsin. For estates under $50,000 this is a quicker and more affordable way to transfer assets to heirs. Our guide will walk you through the simple steps to do this.

Can I Use a Transfer Affidavit?

• You must be an heir of the decedent, a trustee of a trust created by the decedent or a guardian of the decedent at the time of their death.
• The probate assets in the estate must be $50,000 or less.

What Assets Count Toward the $50,000 Limit?

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Probate assets are included in this limit. These are assets that:

• Do not pass to someone else automatically at death.
• Don’t have a beneficiary designated through a will, trust or other instrument.

Examples of non-probate assets that don’t count toward the limit are:

• Jointly owned real property, vehicles or bank accounts.
• Payable on Death (POD) or Transfer on Death (TOD) accounts.
• Assets disposed of in a will or trust.
• Items with beneficiary designations.

If most assets are non-probate, the remaining probate assets may be under $50,000 and a Transfer Affidavit is an option.

Who Needs to Be Notified?

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When using the Transfer by Affidavit form you must confirm if the decedent received state benefits like Medicaid and if so repayment may be required.

The affiant (the person taking control of the assets) must notify creditors as required in probate. For real estate transfers, heirs may need to receive formal notice by certified mail or personal service at least 30 days before recording the affidavit. If not, an Affidavit of Heirship may be required to identify all heirs and include them in the property transfer process.

How to Record the Affidavit

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For estates with real estate the Transfer Affidavit must be recorded with the register of deeds in each Wisconsin county where the property is located.

• The affidavit must be signed and notarized.
• It is used to reclaim property from third parties.

Required Forms

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To complete a Transfer Affidavit you will need to prepare several forms:

• Transfer by Affidavit (PR-1831): To claim the decedent’s assets.
• Affidavit of Heirship: To identify heirs and their relationship to the decedent.
• Affidavit of Service: To document notifications.

For real estate transfers both the Affidavit of Heirship and Affidavit of Service are required.

Managing Assets After the Transfer

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After the assets are transferred the affiant is responsible for:

• Paying creditors.
• Distributing assets according to the estate plan or Wisconsin law.

Be sure to comply with these obligations. Mismanagement can lead to disputes or legal problems.

Potential Pitfalls

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While the Transfer Affidavit process is usually easy, it’s not for every situation. Potential pitfalls are:

• Heir Disputes: Heir disagreements can lead to probate court and undermine the process.
• Obligations to Creditors: Overlooking creditor claims can lead to financial or legal issues.

Before proceeding, assess the dynamics among heirs to determine if this process is the best choice for the estate.