What Might Be Missing From Your Trust?

Probate vs. Small Estate Administration in New York

It is important to understand that probate and small estate administration are not the same. In New York, if a decedent’s estate consists of $50,000 or less in personal property (excluding real estate), a simplified proceeding called Voluntary Administration (commonly referred to as “small estate administration”) may be available. While this process is more streamlined than full probate, it still requires filing documents with the Surrogate’s Court and obtaining authority before assets can be transferred.

New York also provides a limited exception through the Department of Motor Vehicles. In certain circumstances, a surviving spouse may transfer a vehicle by affidavit if the vehicle’s value is $25,000 or less and the required documentation is submitted. There are also narrow situations involving children under the age of 21. For example, if there is no surviving spouse, the affidavit procedure may be available where the decedent is survived by a child or children under 21. Because of these exceptions, some individuals assume that a car will always transfer easily without court involvement. That assumption, however, can lead to complications.

What Happens If You Cannot Transfer a Vehicle by Affidavit?

If there is no surviving spouse, and no qualifying minor child, the DMV affidavit process may not be available. In that situation, even a single vehicle titled solely in the decedent’s name can require a court proceeding before it can be transferred. Families are often surprised to learn that everything else may have been properly planned, yet one overlooked vehicle now requires court filings, legal fees, and delay.

This issue commonly arises when someone believes they have “avoided probate entirely” because they created a trust. A trust can only control assets that are properly retitled into it. If a vehicle remains outside of the trust, it does not follow the trust instructions.

Is it a Good Idea to Put a Car in a Trust?

The lesson is not that every car must automatically be transferred into a trust, as each situation is different. Rather, it is that estate planning should include a complete review of all titled assets, even those that seem minor. A brief discussion about how vehicles are owned and whether an exception may apply can prevent unnecessary court involvement later.

Probate is often triggered not by major assets, but by small details that were unintentionally overlooked. Careful review during the planning process can help ensure that a family’s goal of avoiding court involvement is accomplished.

By Britt Burner, Esq. and Alma Muharemovic  Esq.

Britt Burner, Esq. is the Managing Partner at Burner Prudenti Law, P.C. focusing her practice areas on Estate Planning and Elder Law. Alma Muharemovic, Esq. is an associate attorney at Burner Prudenti Law, P.C. practice on Estate Planning. Burner Prudenti Law, P.C. serves clients from New York City to the east end of Long Island with offices located in East Setauket, Westhampton Beach, Manhattan and East Hampton.