IBA Compliance Connection

Your go to source for compliance!

We received a small estate affidavit from one of our customers. What do we need to do to verify that the affidavit is legitimate? Is there a website we can check to verify the affidavit? What verifying documentation do we need to have on file?

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We do not believe that your bank is required to do anything to verify that a small estate affidavit is legitimate, other than confirm that the affidavit is “substantially in compliance” with the form affidavit in the Illinois Probate Act.

The Illinois Probate Act requires a financial institution to comply with a small estate affidavit that is in substantially the same form outlined in the Act, which should include the affiant’s notarized signature under penalty of perjury. Financial institutions are protected from liability when relying on such a small estate affidavit. Provided that your bank confirms that the affidavit is substantially in compliance with the Illinois Probate Act, your bank should be protected from any potential liability.

For resources related to our guidance, please see:

  • Illinois Probate Act of 1975, 755 ILCS 5/25-1(a) (“When any . . . financial institution . . . is furnished with a small estate affidavit in substantially the form hereinafter set forth, that person, corporation, or financial institution shall pay the indebtedness, grant access to the safe deposit box, deliver the personal estate or transfer or issue the evidence of interest, indebtedness, property or right to persons and in the manner specified in the affidavit or to an agent appointed as hereinafter set forth.”)
  • Illinois Probate Act of 1975, 755 ILCS 5/25-1(d) (“Any . . . financial institution who acts in good faith reliance on a copy of a document purporting to be a small estate affidavit that is substantially in compliance with subsection (b) of this Section shall be fully protected and released upon payment, delivery, transfer, access or issuance pursuant to such a document to the same extent as if the payment, delivery, transfer, access or issuance had been made or granted to the representative of the estate. Such person, corporation, or financial institution is not required to see to the application or disposition of the property; but each person to whom a payment, delivery, transfer, access or issuance is made or given is answerable therefor to any person having a prior right and is accountable to any representative of the estate.”)