Q: Completing a small business affidavit. What are the chances of it working?
Deceased died in 2021. At death his business bank account had 180,000. No other property. A few weeks prior, he told girl friend to pay debts to 2 people totaling 46,000. One is a court order of $36,000, the other is a loan repayment. She didn't do it before he died. His children want to pay debts and fill out small business affidavit to have access to the account and receive the remaining amounts. Will the bank accept this?
A:
Based on the information provided, it seems the deceased's estate might qualify for the small estate affidavit procedure in California, as the total value of the estate appears to be under the $184,500 limit (as of 2023). However, there are a few potential issues to consider:
1. Business bank account: If the account was solely in the name of the deceased's business, it might not be considered part of his personal estate. The small estate affidavit is typically used for personal assets, not business assets.
2. Debts and creditors: If there are outstanding debts, such as the court order and loan repayment mentioned, the estate may need to go through probate to ensure that creditors are properly notified and given a chance to make claims against the estate.
3. Bank's acceptance: Banks have their own policies and may require additional documentation or insist on a probate proceeding, especially if the account was a business account or if there are concerns about outstanding debts.
In this case, the children's chances of successfully using a small estate affidavit to access the account and receive the remaining funds may be somewhat limited due to the nature of the account (business) and the existence of debts. It would be advisable for them to consult with a probate attorney familiar with California law to assess their options and determine the best course of action.
An attorney can help them navigate the small estate affidavit process, if applicable, or guide them through the probate process if necessary to ensure that debts are properly handled and the remaining assets are distributed according to California law and the deceased's wishes (if a will exists).
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