Kravets Law Group, an Illinois law firm specializing in business, real estate, and estate planning, is highlighting a recent legislative change that simplifies the settlement of modest estates. Public Act 104-0346, effective August 15, 2025, raised the small estate affidavit threshold from $100,000 to $150,000 and excluded the value of vehicles registered with the Illinois Secretary of State from the calculation.
A small estate affidavit allows heirs or beneficiaries to collect a deceased person's assets without opening a formal probate case. The process is faster, less expensive, and less complex than traditional probate. It can be used to transfer assets such as bank accounts, investment accounts, personal property, and insurance benefits payable to the estate. However, it cannot transfer real estate, which still requires probate or a mechanism like a transfer-on-death instrument.
"Formal probate can take months and cost thousands of dollars in fees," said founding attorney Daniel Kravets. "For families dealing with the loss of a loved one, avoiding that process when it isn't necessary is a genuine relief, and now more families will be able to."
The previous $100,000 threshold had been in place for years, but inflation and rising asset values gradually pushed many modest estates over the limit. The new cap of $150,000 and the vehicle exclusion bring the law in line with current estate values. Under the old law, a vehicle's value counted toward the cap, potentially pushing an otherwise qualifying estate into probate. Now, registered vehicles no longer factor into the threshold calculation.
The 2025 amendment also clarified documentation requirements, reducing back-and-forth between families and financial institutions when releasing assets. However, limitations remain: real property transfers still require probate, all outstanding debts must be addressed before distribution, and heirs who distribute assets without accounting for debts can face personal liability. The affidavit cannot be used if probate has already been opened, and financial institutions may request additional documentation.
"The small estate affidavit is a useful tool, but it isn't a substitute for a comprehensive estate plan," Kravets added. "For families who want to avoid Illinois probate entirely, there are other strategies worth considering, like revocable living trusts, transfer-on-death designations, and properly titled joint accounts. The new law expands the safety net, but the best outcomes still come from planning ahead."
Kravets Law Group, based in Chicago, serves clients across Illinois, Pennsylvania, and New Jersey. The firm offers complimentary consultations to help families understand how the probate changes under Public Act 104-0346 may affect them and whether their estate plan needs updating. More information is available at Kravets Law Group.
