North Dakota

To the best of our knowledge, the information provided below is current and accurate. Always be sure to consult with a jurisdictional authority before using this information to educate or counsel your clients.

State Estate or Inheritance Taxes

North Dakota has no state estate or inheritance tax.

Small Estate Probate

Every state offers a fast track or shortcut for the probate of "small estates." Some assert that probate court is the proper forum for passing a small estate to the heirs, the idea being that if an estate is not valued over a certain minimum threshold, it is too small for serious estate planning.

To be sure, when a state's small estate probate threshold is extremely low, using this shortcut to settle an estate that qualifies may be the obvious choice. However, the small estate probate threshold in some states is substantial, in which case serious issues should be considered before you allow a client to go to the default system of the state court. When small estate probate is appropriate and what the client desires, refer to the following information.

North Dakota offers some probate shortcuts for "small estates." These procedures make it easier for survivors to transfer property left by a person who has died. You may be able to transfer a large amount of property using simplified probate procedures or without any probate court proceedings at all -- by using an affidavit. And that saves time, money, and hassle.

Here are the ways you can skip or speed up probate. (If the affidavit procedure is used, there's no need to use the simplified probate procedure.)

Claiming Property With a Simple (Small Estate) Affidavit

North Dakota has a procedure that allows inheritors to skip probate altogether when the value of all the assets left behind is less than a certain amount. All an inheritor has to do is prepare a short document, stating that he or she is entitled to a certain asset. This document, signed under oath, is called an affidavit. When the person or institution holding the property -- for example, a bank where the deceased person had an account -- gets the affidavit and a copy of the death certificate, it releases the asset.

The out-of-court affidavit procedure is available in North Dakota if the value of the entire estate subject to probate, less liens and encumbrances, is $50,000 or less. There is a 30-day waiting period. N.D. Cent. Code § 30.1-23-01.

Simplified Probate Procedures

North Dakota has a simplified probate process for small estates. To use it, an executor files a written request with the local probate court asking to use the simplified procedure. The court may authorize the executor to distribute the assets without having to jump through the hoops of regular probate.

You can use the simplified small estate process in North Dakota if the value of the entire estate, less liens and encumbrances, does not exceed the homestead, plus exempt property, family allowance, costs of administration, reasonable funeral expenses, and reasonable medical expenses of the last illness. N.D. Cent. Code § 30.1-23-03.

The executor can then distribute the assets to the inheritors and file a closing statement with the probate court. This statement must state that:

• the total value of the estate is less than that described above, to the best knowledge of the executor

• the executor distributed the assets to the inheritors

• the executor sent a copy of the closing statement to all inheritors and known creditors, and

• the executor gave a full written accounting to the inheritors