Set-aside

What it means

Some states let a court assign the whole estate by order, without appointing anybody and without an administration. Nevada calls it setting the estate aside; Wisconsin calls it summary assignment.

It is a court proceeding, so it is not the same as an affidavit handed to a bank, and it can reach property an affidavit cannot.

Why it matters

It is the answer for families over the affidavit ceiling or holding real property, and it is frequently missed because the family stopped looking after the affidavit did not fit.

In some states it is not discretionary. Where a Nevada estate is inside the ceiling and there is a surviving spouse or a minor child, the court must set the estate aside for them, and must do it without paying the creditors except to prevent a manifest injustice.

When you are likely to meet it

• When the small-estate affidavit does not fit and full probate looks disproportionate.

How this varies by state

Only some states offer it, under several different names.

Related terms

• Family allowanceMoney a court may allow a surviving spouse and dependent children to draw from the estate while it is being settled, ahead of most creditors.
• Homestead exemptionA protection for the family home — from creditors, from being sold to pay debts, or as a right for the surviving spouse to keep living there.
• Priority of claimsThe statutory order in which an estate's debts are paid. Paying out of order is the executor's own liability.
• Probate courtThe court that supervises estates. In many states it is a division of a general trial court and goes by another name.
• Small-estate affidavitA sworn statement a state allows instead of a full probate case for an estate under its ceiling. What it is called, what it reaches and whether a court is involved differ by state.
• Summary administrationA shortened court procedure for smaller or simpler estates, with fewer steps and less supervision than full administration.

Sahvelo guidance that uses this

• Do you actually need probate?