When someone you love passes away, the last thing you want to hear is that you’ll need to spend months navigating probate court. The good news: if the estate is modest – $50,000 or less (adjusted annually for inflation) – Michigan law offers two streamlined alternatives that can save your family significant time, stress, and expense.
But here’s where families get tripped up. Michigan doesn’t offer just one small estate shortcut – it offers two distinct processes with different rules, different forms, and different limitations. Choosing the wrong one can invalidate your efforts entirely and send you back to square one.
Understanding the difference between the PC 598 Small Estate Affidavit and the PC 556 Petition for Assignment – and knowing which one fits your situation – is the single most important decision you’ll make when settling a small estate in Michigan.
What Is a Small Estate in Michigan? The $50,000 Threshold
Michigan defines a “small estate” based on a dollar threshold that adjusts annually for cost-of-living increases under MCL 700.1210. The current base threshold is $50,000, adjusted annually for inflation.
If the estate’s total value falls at or below this amount, you may qualify to use one of two simplified processes instead of full probate administration. Both processes are authorized under Michigan’s Estates and Protected Individuals Code (EPIC), but they work very differently.
The threshold is not applied the same way for both processes. For the affidavit (PC 598), the threshold is calculated net of liens and encumbrances on personal property. For the petition (PC 556), it’s based on gross value after funeral and burial expenses – a subtle but critical distinction that affects which process your estate qualifies for.
The Two Small Estate Processes: A Side-by-Side Overview
PC 598 Affidavit – Collection by Affidavit (MCL 700.3983)
The PC 598 is the simpler of the two options. It’s a sworn, notarized statement – not a court filing. You don’t go before a judge. You don’t open a probate case. Instead, you complete the affidavit and present it directly to whoever holds the decedent’s assets: banks, employers, financial institutions, insurance companies.
Who uses it: Families dealing with straightforward estates consisting entirely of personal property (bank accounts, vehicles, personal belongings) worth $50,000 or less net of liens and encumbrances (threshold adjusted annually).
Key limitation: The PC 598 cannot be used if the estate includes real property – no houses, no land, no condos. This is the most misunderstood rule in Michigan small estate law, and we’ll address it in detail below.
PC 556 Petition for Assignment (MCL 700.3982)
The PC 556 is a court-filed process, but it’s more streamlined than most people expect. You file a petition with the local probate court, a court clerk reviews the paperwork, and – if everything qualifies – the clerk signs an order assigning the assets to the appropriate heirs. In most cases, this does not require a court hearing or an appearance before a judge.
Who uses it: Families whose estates are valued at $50,000 or less (gross value after funeral and burial expenses) but need the authority of a court order – either because the estate includes real property, because asset holders won’t accept the affidavit, or because there are complications like disputed claims or unclear heirs.
Filing fee: The typical small estate petition filing fee is approximately $25, plus additional costs for certified copies and service.
Important: While the PC 556 does not require you to publish notice to creditors, heirs who receive property through the order remain liable for the decedent’s unsatisfied debts for 63 days after the date of the order – up to the value of property they received. Surviving spouses and minor children are exempt from this 63-day liability window.
Step-by-Step: Using the PC 598 Small Estate Affidavit
Step 1 – Confirm eligibility. Verify that the estate’s total personal property value is $50,000 or less, net of liens and encumbrances (confirm the current adjusted threshold at time of filing), and that the estate includes no real property whatsoever. The standard SCAO form for PC 598 explicitly states: “No real property is included in the decedent’s estate.”
Step 2 – Wait 28 days. Under MCL 700.3983(1), the affidavit cannot be used until at least 28 days have passed from the date of death. Presenting the affidavit earlier than this makes it invalid.
Step 3 – Complete and notarize the affidavit. The PC 598 form must be signed before a notary public. No separate lay witness signature is required – the notarization alone satisfies the sworn statement requirement. The affidavit identifies the decedent, describes the assets, confirms the estate meets the threshold, and identifies the person entitled to receive the property.
Step 4 – Present the affidavit to asset holders. Take the notarized PC 598 directly to the bank, employer, financial institution, or other entity holding the decedent’s assets. They are legally required to honor a properly completed affidavit and release the assets to the person identified in the document.
Step 5 – Collect and distribute. Once the asset holder releases the property, the person who signed the affidavit is responsible for using those assets to pay the decedent’s debts and distributing any remainder to the rightful heirs.
Many Michigan residents don’t realize that a properly completed PC 598 affidavit can resolve a modest estate in a matter of weeks – without ever stepping foot in a courtroom. For qualifying estates, it’s one of the most efficient tools Michigan probate law offers.
Step-by-Step: Filing a PC 556 Petition for Assignment
Step 1 – Determine that the petition is necessary. The PC 556 is typically used when the estate includes real property, when asset holders refuse to honor the affidavit, or when the circumstances are complicated enough to warrant a court order.
Step 2 – Complete the petition. The PC 556 form (revised March 2025) is a combined petition-and-order document. You’ll need to list all of the decedent’s personal and real property with gross values and lien amounts, itemize funeral and burial expenses (with statements and receipts attached), identify the surviving spouse and/or heirs, and specify how the property should be assigned.
Step 3 – File with the probate court. Submit the completed PC 556 to the probate court in the county where the decedent lived. Pay the filing fee (typically $25 for small estate petitions; certified copies and related costs are extra).
Step 4 – Receive the court order. In most cases, a court clerk reviews the petition and – if everything qualifies under MCL 700.3982 – signs the order of assignment. This typically does not require a formal hearing or an appearance before a judge. The signed order directs how the estate assets – including any real property – should be transferred, giving banks, title companies, and other institutions the legal authority they need to act.
Step 5 – Be aware of the 63-day creditor window. Once the order is signed, each heir (other than a surviving spouse or minor child) remains liable for the decedent’s unpaid debts for 63 days from the date of the order, up to the value of property received. This means creditors can still pursue heirs during that window – so don’t assume the process is fully closed the moment you receive the order.
In our experience serving Michigan families, the PC 556 petition is the right tool when the estate has even one complicating factor – a piece of real property, a disputed claim, an uncooperative financial institution. The court order eliminates ambiguity and gives every party the authority they need to act. And because the process is typically handled by the court clerk without a hearing, it’s faster than most families expect.
The Real Property Exception: Why Real Estate Changes Everything
This is the section that matters most – and the one where we see the most confusion.
If the decedent’s estate includes any real property, the PC 598 affidavit cannot be used. Period. The standard SCAO form explicitly requires the person signing the affidavit to certify that no real property is included in the estate.
Here’s where the confusion comes from: In 2024, Michigan amended MCL 700.3983 to change how real property liens and mortgages factor into the value calculation for determining whether the estate meets the $50,000 threshold. The amendment allows you to deduct real property liens when calculating net estate value.
But – and this is critical – that amendment did not change the rule about what assets can be collected using the affidavit. Real property still cannot be transferred through a PC 598. The amendment only affects math, not eligibility. If there’s a house, a condo, a vacant lot – anything classified as real property – you need the PC 556 petition or full probate.
At Boroja, Bernier & Associates, this is one of the most common mistakes we help families correct. Someone reads about the small estate affidavit, assumes it covers the family home because the total value is under the threshold, completes the PC 598, and then discovers it’s invalid for their situation. By then, they’ve lost weeks – and often need to start the petition process from scratch.
When real estate is involved, call (586) 991-7611 before you file anything. A brief consultation can save you from a costly misstep.
Common Mistakes That Delay or Invalidate the Process
Attempting to use the PC 598 when real property is involved. As discussed above, this is the most frequent error. The affidavit is for personal property only – no exceptions.
Not waiting the full 28 days. The affidavit is invalid if presented before 28 days have passed from the date of death. Some families, eager to access funds for funeral expenses or bills, try to use the affidavit too early. The institution will – and should – reject it.
Misvaluing the estate. The PC 598 uses net value (after liens and encumbrances on personal property). The PC 556 uses gross value after funeral and burial expenses. Confusing these calculations can mean filing under the wrong process or exceeding the threshold without realizing it.
Ignoring the 63-day creditor liability window. When using the PC 556 petition, heirs who receive property remain personally liable for the decedent’s unsatisfied debts for 63 days after the court order – up to the value of what they received. Distributing or spending inherited assets immediately without accounting for potential creditor claims during this window can create serious financial exposure.
Using the affidavit for estates that exceed the $50,000 threshold (as adjusted) net of liens. Overestimating deductions or undervaluing assets pushes the estate past the threshold. If the estate doesn’t qualify, the affidavit is invalid and asset holders can refuse to honor it.
When You Still Need a Probate Attorney – Even for Small Estates
Small estate doesn’t mean simple estate. Families regularly need professional guidance when:
- The estate is close to the $50,000 threshold and proper valuation matters
- Real property is involved and the PC 556 petition is required
- There’s no will and intestate succession rules determine who inherits
- Multiple people claim entitlement to the same assets
- Creditors have outstanding claims against the decedent
- Out-of-state assets complicate jurisdiction
At Boroja, Bernier & Associates, small estate assistance typically costs $1,500-$3,000 for straightforward affidavit preparation and guidance – a fraction of full probate administration costs. When you compare that to the risk of filing incorrectly and restarting the process, the investment pays for itself.
To speak with a Michigan probate attorney about your situation, call (586) 991-7611 or schedule a consultation.
Frequently Asked Questions About Michigan Small Estates
No. The PC 598 affidavit under MCL 700.3983 cannot be used when the estate includes real property. Even if the home’s value minus the mortgage falls under the threshold, the affidavit is only for personal property. If real estate is involved, you’ll need to file a PC 556 Petition for Assignment or pursue full probate administration.
At least 28 days from the date of death. This waiting period is required by MCL 700.3983(1) and cannot be shortened. If you present the affidavit before the 28 days have passed, it’s invalid and the asset holder should refuse to honor it.
It depends on which process you’re using – and note that the $50,000 base threshold is adjusted annually for inflation under MCL 700.1210, so confirm the current figure at the time of filing. For the PC 598 affidavit, the threshold is based on the estate’s value net of liens and encumbrances – meaning you subtract outstanding debts secured against personal property. For the PC 556 petition, it’s based on gross value after funeral and burial expenses. The distinction matters, and getting this calculation wrong can invalidate your filing.
Michigan law doesn’t require an attorney to complete a PC 598 affidavit or file a PC 556 petition. However, mistakes in valuation, eligibility, or process can delay asset collection by months and may require starting over. For estates near the threshold, estates with real property questions, or situations involving multiple heirs or creditor claims, professional guidance is strongly recommended.
Some financial institutions have internal policies that make them reluctant to honor a PC 598, even when it’s properly completed. If an asset holder refuses, the PC 556 petition is your backup. The court order from a successful petition gives the institution the legal authority it needs to release the assets. Contact Boroja, Bernier & Associates at (586) 991-7611 if you’re encountering resistance – we can help you determine the fastest path forward.
No. The PC 598 is not filed with the court – it’s presented directly to asset holders. You’ll need to pay for notarization (typically a nominal fee), but there’s no court filing fee. The PC 556 petition, by contrast, does require a filing fee of approximately $25, plus costs for certified copies.
Yes, for a limited time. Under the PC 556 order, each heir – other than a surviving spouse or minor child – remains liable for the decedent’s unsatisfied debts for 63 days from the date of the court order, up to the value of property they received. This doesn’t mean creditors will always come forward, but it means you should be cautious about spending or distributing inherited assets immediately.
Get the Right Guidance for Your Family’s Probate Situation
Settling a loved one’s estate should not require months of court proceedings when Michigan law provides a faster path. But choosing the wrong process, or misjudging the threshold, can quietly undo the savings.
At Boroja, Bernier & Associates, our probate attorneys help families use small estate and full probate procedures correctly the first time. We serve families in Macomb County, Oakland County, Wayne County, and throughout Southeast Michigan, Central Michigan, and Mid-Michigan, with offices in Shelby Township, Troy, Ann Arbor, and Lansing.
To find out which process fits your situation, schedule a consultation with our Michigan probate attorneys or call (586) 991-7611.
About the Author
This article was written by Daniel Boroja, Esq., a partner at Boroja, Bernier & Associates PLLC, admitted to the State Bar of Michigan in 2013 (Bar No. P77079). Daniel focuses his practice on estate planning, probate and trust administration, and elder law and Medicaid planning for Michigan families.
