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We've compiled the information below from local government resources regarding common details of probate.
Please note: This glossary and FAQs below have been pooled from city and county sources. It is being provided without guarantee of accuracy or warranty. We have aggregated this information to help you learn more and put together questions to discuss with those who you'll be working with throughout this process (attorneys, real estate professionals, etc). By utilizing this page, you acknowledge that it is for informational purposes only and we advise you that decisions made should be discussed with an attorney or licensed professional.
The judicial process in which an instrument purporting to be the will of a deceased person is proven to be genuine or not; lawful distribution of the decedent’s estate. The legal process of administering a will. Also, the judicially supervised process for marshaling a decedent’s assets, paying proper debts, and distributing the remaining assets to the persons or entities entitled to them. An estate may be probated even if there is no will.
All the assets owned at death that require some form of legal proceeding before title may be transferred to the proper heirs. Property that passes automatically at death (property in trust, life insurance proceeds, property in a “pay-on-death” account or property held in joint tenancy) is not in the probate estate.
The generic title applied to the person who is authorized to act on behalf of the decedent’s estate. Almost always, this person is either an administrator or executor (male)/executrix (female) appointed by the court to administer a decedent’s estate. In some cases there may be a valid objection or the person assigned refuses to serve in that capacity, the probate judge will name a person who is in the will to serve as the personal representative.
The personal representative has a responsibility to make sure that the deceased person's wishes are honored in accordance with their will. The personal representative may be tasked with identifying and safeguarding the estate's specific assets, learning the names and addresses of all beneficiaries named in the will and any other potential heirs, collecting and resolving any debts owed by creditors, ensuring that estate taxes are calculated and paid, filing any necessary forms, and providing assistance to an estate attorney (often chosen by the individual representative if not named therein).
Property that names a co-owner on its deed or title. At the death of one of the co-owners, the other will become the sole owner of the property, regardless of what may be conveyed in the will.
A person who has made a will or who has died leaving a valid will. The estate is normally distributed according to that will.
When someone who passes away does not leave a will. Opposite of testate.
An amendment or supplement to an existing will that modifies and updates existing provisions. When admitted to probate, it forms a part of the will. This is often used instead of redrawing an entire will.
The following is a VERY condensed step-by-step description of the process. Probate can vary from state to state and is frequently subject to outside factors that can change it:
The local probate court or whichever court oversees probates in that area receives an original (signed and executed) copy of the will.
A neighborhood newspaper publishes a notice of the petition for probation. The personal representative (executor or executrix) named in the will, assuming a will exists (legally referred to as "testate"), or the court-appointed administrator if there isn't, typically needs to be formally appointed and/or certified.
The personal representative submits a formal petition with the court to probate the estate after they are certified or appointed officially.
Creditors are permitted to file their claims against the estate after the formal petition is filed and made public, typically for a period of time (four months is typical). This covers all encumbrances, including any unpaid debts in the past, liens, or judgments as well as obligations owed for medical care, funeral costs, taxes, and other expenses.
The personal representative will work to identify, collect, and secure the estate's assets during this time so that they can ultimately be distributed in accordance with court orders or the will. In order to achieve this, the personal representative will also need to locate and access all bank and other security accounts, as well as any outstanding debts that the decedent may have that must be settled. They must also find out who owns any real estate, and they must secure the titles to all of these assets that may need to be disposed of.
Additionally, the personal representative is in charge of collecting any income (rents, residual income, interest payments, etc.) and keeping these assets in good condition, maintaining them safely, and properly during their period of stewardship. In order to do this, the representative needs to be aware of and maintain adequate insurance coverage, which includes safeguarding the assets against theft, damage, etc.
Some of the hard assets, such as cars, real estate, etc., may also be liquidated by the personal representative (if permitted or desired). This is frequently done to give creditors the money they need to pay off their debts.
The personal representative will typically file their final petition with the probate court to allow a full distribution of all remaining assets to the heirs and beneficiaries after the formal claims period has passed and all assets have been collected. This is done assuming no issues have arisen, such as any disputes over the estate's will or other contested claims. The proposed final plan for final asset distribution is also included in this final petition, along with a thorough accounting to the court outlining all costs incurred, funds and assets received and distributed, as well as any assets invested or otherwise used.
If the petition is granted by the court, the personal representative then distributes the assets in accordance with the will's instructions and specifics, or, in the absence of a will, as required by law or the courts.
There are many different factors that can affect how long the probate process takes, but generally speaking, it takes about six months. You should be aware, that it can take a lot longer and frequently does. Here are a few issues that can arise that prolong the probate process:
Problems in locating the heirs and beneficiaries.
A contest between the beneficiaries or heirs of the will.
Claims or liens against the unresolved estate.
Real estate or other property that is unable to be sold.
During the claim period, failing to properly notify one or more creditors.
Dissatisfaction with the heirs' or beneficiaries' personal representative's actions
It is even more crucial to choose a well-organized and meticulous personal representative who can efficiently manage the process and lower the likelihood of complications and delays due to the complexity of the task and the myriad potential delaying factors.
Here are some of the most important reasons on why probate is required:
Legal title/ownership transfers of the decedent's assets and properties to the heirs and/or beneficiaries. Probate is typically unnecessary if there is no property to transfer.
The collection of any taxes that the deceased person or their estate may owe to various taxing authorities at the time of their passing or that become owed after a property is transferred.
Probate also gives creditors a deadline to bring claims against the estate that is legally required, as was already mentioned. As a result, future claims against the heirs or beneficiaries are stopped by old or unpaid creditor.
Clearing title on a property. If the deceased owned real estate in his own name no one could legitimately accept title to it. A bank would also not be able to grant mortgages to new buyers until the estate had gone through probate.
In general, no one would engage in any additional business involving the deceased's property until the estate had been duly appointed and a probate has been filed for the will.
Finally, it offers a legal framework for the actual physical distribution of the estate's remaining assets to the beneficiaries and heirs.
It is not always necessary to go through probate but some legal process to switch the beneficiaries and/or heirs' legal title and possession of the deceased's property is normally required. Additionally, some states permit certain recipients to receive certain types of property through a simplified probate process or without the need for a probate process.
Real and personal property that is held in a "joint tenancy with rights of survivorship" typically passes to the co-owner(s) who are still alive without the need for probate.
Without the need for probate, various benefits, like life insurance policies and annuities, are often payable directly to the named beneficiary. Additionally, IRA, Keogh, and 401( k) accounts typically automatically transfer to the named heirs or beneficiaries. A Totten Trust is a type of bank account that is "held in trust for" specific heirs or beneficiaries and is set up as "payable-on-death" accounts. The proceeds are also transferred without probate to the designated beneficiaries.
A "living trust," which holds title to a trust's assets, automatically transfers ownership of those assets to the heirs or beneficiaries. A trust of this type is a legal structure that endures after its creator passes away.
State law or local laws can dictate the cost of probate.
Typically, probate can cost between 3% and 7% of the total estate value. These costs can include appraisal costs, executor's fees, court expenses, costs for a type of insurance policy known as "surety bond," and legal and accounting fees. All wagers are void if there is a "Will contest."
It's possible in some cases. For estates whose value is below certain financial thresholds, certain processes— often referred to as "simplified procedures"— are used in some states. The upper and lower limits range from a few thousand dollars to$ 160,000. The court of jurisdiction determines this. The whole probate process may be necessary or advisable if there is real estate involved or debts owed against the estate, regardless of the size. This is undoubtedly a matter to discuss with an attorney.
The person designated as the deceased's Personal Representative normally consults a probate lawyer who has experience in the matter. The lawyer prepares the petition for the court, accepts it along with the will, and brings it before the probate court.
If the deceased passed away without leaving a will, the attorney for the person requesting that the will be admitted to probate must ordinarily inform everyone who would have been legally entitled to receive property from him or her, as well as everyone named in the will, and give them the chance to formally object.
After the matter is filed, a hearing on the probate petition is normally scheduled. It may be necessary to bring in the people who saw the deceased's signature on the Will, as well as who the named beneficiaries are, how long before the will was signed, whether an attorney drafted it, oversaw its "execution," and/ or whether it was executed using specific affidavits.
If there are no objections and everything is in order, the court will approve the petition, name the individual representative, order the payment of taxes and debts, and insure that the person representing the deceased's property be distributed and accounted for in accordance with the terms and conditions of the will.
The estate is typically handled by the local court in the State and County where the deceased lived at the time of death. These courts can be referred to by different names depending on the state and/or county. In California, the Superior Court, Probate Division, normally hears these cases.
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