Indiana Small Estate Affidavit: The $100,000 Threshold and How It Works

Indiana doubled its small estate threshold from $50,000 to $100,000 effective July 1, 2022 — opening the door for significantly more families to bypass formal probate entirely. If the gross probate estate falls under this line, the small estate affidavit (Form 54985) lets heirs collect assets without court administration.

But there are critical limits that catch people off guard.

What Qualifies as a "Small Estate" in Indiana

The $100,000 threshold applies to the gross probate estate — meaning only assets held in the decedent's sole name that don't have a beneficiary designation or survivorship provision. Joint accounts, life insurance with named beneficiaries, TOD deeds, and trust assets are excluded from this calculation.

This distinction matters enormously for estate planning. A person with $500,000 in total assets might still qualify for the small estate process if most of those assets pass outside probate through beneficiary designations and joint titling.

The threshold is tied to the date of death:

• After June 30, 2022: $100,000
• July 1, 2006 through June 30, 2022: $50,000
• Before July 1, 2006: $25,000

The 45-Day Waiting Period

You cannot use Form 54985 immediately after death. Indiana law imposes a mandatory 45-day waiting period from the date of death before any assets can be collected. During this window, creditors and other interested parties have the opportunity to open a formal probate case if they choose.

After 45 days, the person entitled to receive the assets presents the completed affidavit — along with a certified death certificate — to each institution holding the decedent's property (banks, brokerage firms, employers with final paychecks).

The Real Estate Problem

Here's the catch that trips up most families: the small estate affidavit only works for personal property — bank accounts, vehicles, investment accounts, personal belongings. It cannot transfer real estate.

If the decedent owned a home or land in their sole name without a TOD deed, the heirs need a separate instrument called a devolution affidavit (passage of title affidavit). This has its own rules:

• No maximum value limit on the real estate
• 7-month waiting period after death (not 45 days)
• Cannot be used if a personal representative has already been appointed
• Cannot be used if a probate petition is pending

For estate planning purposes, this means the smartest strategy is to keep real estate out of the probate estate altogether — using TOD deeds, joint tenancy with right of survivorship, or a revocable trust.

Vehicle Transfers: The 5-Day Shortcut

Indiana BMV operates under separate rules. Vehicle and watercraft titles can be transferred just 5 days after death using State Form 18733, provided the total gross probate estate doesn't exceed $100,000.

Even better: if the vehicle owner filed BMV Form 3811 (beneficiary designation) during their lifetime, the title transfers immediately upon death with no waiting period at all.

Planning Your Estate to Stay Under the Threshold

If you're building your estate plan, here's how to structure assets so your family can use the small estate process:

Title real estate with a TOD deed. This removes it from the probate estate entirely. Remember the July 2024 requirement: all TOD deeds must now be endorsed by the county auditor before the county recorder will accept them.

Add POD/TOD designations to bank and investment accounts. These pass directly to beneficiaries outside probate.

Name beneficiaries on retirement accounts and life insurance. Always name both primary and contingent beneficiaries.

Use joint tenancy with right of survivorship for accounts you share with a spouse or partner.

The goal is straightforward: reduce the value of sole-name probate assets below $100,000 so your heirs can use Form 54985 instead of opening a probate case.

When the Small Estate Path Won't Work

The affidavit process is unavailable when:

• The gross probate estate exceeds $100,000
• A creditor or interested party has already filed for formal probate
• Real estate is involved (use the devolution affidavit instead)
• The decedent had outstanding Medicaid claims — Indiana's expanded-estate recovery program can reach assets within a 9-month window after death

The Indiana Basic Estate Planning Kit includes asset inventory worksheets designed to help you calculate your probate estate value and structure your holdings to stay below the $100,000 threshold, along with step-by-step beneficiary coordination guides for every major asset type.

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