Michigan Small Estate Affidavit, TR-40 Forms, and Probate Inventory: A 2026 Guide

For small estates in Michigan, going through full probate court isn't always necessary. The state provides three distinct shortcuts — the Transfer by Affidavit, the Petition and Order for Assignment, and the TR-40 vehicle transfer — each designed to move specific assets to heirs quickly without the cost and delay of formal court administration.

The catch: each has strict eligibility conditions, separate thresholds, and its own paperwork. Conflating them, or using the wrong one, creates delays and personal liability. Here's how each works in 2026.

The $53,000 Small Estate Threshold (2026)

Michigan's small estate procedures are governed by the annual Cost-of-Living Adjustment provision in MCL 700.1210. For deaths occurring in 2026, the small estate limit is $53,000 in gross probate assets.

This threshold applies only to probate assets — those that don't already have a named beneficiary, joint owner, or other non-probate transfer mechanism. The following are excluded from the calculation:

• Life insurance with named beneficiaries
• Joint bank accounts with rights of survivorship
• IRAs and 401(k)s with beneficiary designations
• Motor vehicles (governed by a separate threshold)
• Watercraft (governed by a separate threshold)
• Property held in a living trust

For 2026, there's also a critical real estate provision: when calculating whether an estate qualifies as a small estate, Michigan allows a maximum deduction of $264,000 in real estate liens (mortgages). This means a home worth $300,000 with a $260,000 mortgage only counts as $40,000 toward the threshold — potentially allowing an estate with a modestly leveraged home to still qualify for simplified procedures.

Path 1: Transfer by Affidavit (SCAO Form PC 598)

This is the most streamlined Michigan small estate option. It requires no court filing fee and no judge's signature.

Requirements:

• At least 28 days have passed since the date of death
• The estate contains absolutely no real property (not even mineral rights)
• The total probate estate is valued under the $53,000 threshold
• The affidavit is notarized and signed by the heir(s)

How it works: The successor (heir) completes and notarizes SCAO Form PC 598 (Affidavit of Decedent's Successor for Delivery of Certain Assets) and presents it directly to the institution holding the assets — the bank, brokerage, or other custodian — along with a certified copy of the death certificate. The institution is legally required to transfer the assets to the person presenting the affidavit.

The personal liability warning: By signing the Transfer by Affidavit, the successor assumes personal liability for all valid debts of the deceased up to the value of assets received. This means you must pay valid creditors in the proper statutory order before distributing funds to yourself or other heirs. Paying yourself before reimbursing the person who paid the funeral expenses, for example, violates the priority of claims rules under MCL 700.3805 and can create personal liability. This is not a risk to be taken casually.

The 28-day mandatory waiting period is absolute. No institution is required to honor the affidavit before it expires. Plan around it.

Path 2: Petition and Order for Assignment (SCAO Form PC 556)

This procedure involves the court, but it's far simpler than full probate. A judge reviews and approves the distribution via a written order.

Requirements:

• The estate's gross value, minus paid funeral and burial expenses, is $53,000 or less
• May include real property (unlike the Transfer by Affidavit)
• Filed by an heir or by the individual who paid the funeral bill

Costs:

• $25 filing fee
• $12 certification fee per set of orders
• Plus the statutory inventory fee based on estate value

How it works: File Form PC 556 with the county probate court along with a death certificate. The court can approve the petition and issue an order without a formal hearing in many cases. The order directs institutions and property holders to transfer assets as specified. Because a court is involved, the distribution has more legal certainty than the self-executing affidavit.

The court order will direct reimbursement of funeral expenses first, then assign the remaining balance to the surviving spouse or, if none, to heirs under intestate succession.

If the deceased paid their own funeral bill in advance (pre-paid funeral contract), that expense may not be deducted — only unpaid funeral expenses incurred at the time of death qualify.

The TR-40 Forms: Vehicle Transfers Without Probate

Vehicles operate under an entirely separate statutory framework from the $53,000 small estate threshold. Under MCL 257.236, vehicles can transfer through the Michigan Secretary of State — not the probate court — provided the total aggregate value of all vehicles owned by the deceased does not exceed the applicable threshold.

For 2024 and 2025, this threshold was $100,000. Beginning in 2026, the threshold is subject to an annual COLA adjustment. Verify the current adjusted figure with the Secretary of State.

Important: This is an aggregate limit across all vehicles, not a per-vehicle limit. Three vehicles worth $30,000 each total $90,000 — they can all transfer via TR-40 forms if the aggregate is under the limit. But if the total exceeds the limit, all vehicles go through probate.

The TR-40 form suite replaced the TR-29 form in 2026:

• TR-40a (Certification from the Heir to a Vehicle): Used by the surviving spouse or next-of-kin to certify their rightful claim and take title
• TR-40b (Certification of No Interest): Used when multiple heirs have a legal right but some wish to surrender their share to one person
• TR-40c (Certification of Ownership Transfer): Used when heirs want to transfer the vehicle directly to a third-party buyer without taking title themselves first

21-day title transfer rule: Michigan law requires vehicle title transfers to be completed within 21 days of acquiring the vehicle. Missing this deadline incurs a $50 statutory late fee on top of the standard $15 title transfer fee. For a vehicle that transfers at death, the clock starts at the date of death.

Note: TR-40 forms require identity verification and sworn signatures at a Secretary of State branch office. Do not attempt to mail these forms. Schedule an appointment online first.

The Probate Inventory and Inventory Fee

If full probate is required — because the estate exceeds $53,000, or because real property is solely titled in the deceased's name — the appointed Personal Representative must prepare and file an estate inventory with the probate court within 91 days of appointment.

SCAO Form PC 577 (Inventory, Decedent Estate) must list:

• All probate assets (everything not transferred by beneficiary designation or joint ownership)
• Reasonable detail identifying each asset
• Fair market value at the date of death
• Type and amount of any encumbrances (mortgages, liens)

The inventory is not just a legal formality — it's the basis for calculating the mandatory inventory fee owed to the court under MCL 600.871(1). Key rules:

• Mortgages and liens on real estate are deducted from the gross property value when calculating the fee
• The fee cannot be waived, even for indigent estates — it must be paid from estate assets
• The fee must be paid before the estate can be closed, or within one year of filing, whichever comes first

Example inventory fee calculations (2026):

• $50,000 estate: $237.50 base (the $50,000-$99,999 bracket)
• $100,000 estate: $362.50 (the $100,000-$499,999 base)
• $200,000 estate: $362.50 + $125.00 = $487.50

The tiered calculation is set by statute and does not vary by county. All calculated fees are rounded to the nearest whole dollar.

Choosing the Right Path

Getting the path wrong can mean starting over, losing the 28-day window credit, or inadvertently triggering formal probate court. The Michigan Estate Settlement Guide walks through each path in detail — including the exact forms, the fee calculations, the 2026 thresholds, and the statutory order of creditor priorities that must be followed whenever you're distributing estate assets.

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