A recent change in Illinois law makes it easier for families to settle modest estates without formal probate. 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, according to Kravets Law Group.
A small estate affidavit allows heirs to collect assets of a deceased person without opening a probate case. The process is faster and less expensive than traditional probate. It can transfer bank accounts, personal property, and insurance benefits, but cannot transfer real estate.
“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 not kept pace with inflation, making many modest estates ineligible. The new cap and vehicle exclusion bring the law in line with current estate values. Registered vehicles no longer count toward the threshold, preventing a single car from pushing an estate into probate.
However, limitations remain. Real property still requires probate. Heirs must address all debts before distributing assets to avoid personal liability. The affidavit cannot be used if probate has already been opened. 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.”
Kravets Law Group offers complimentary consultations for those affected by the changes. More details can be found on their website.
