Probate is a legal way to properly dispose of a deceased person’s property after death, with the required approval from a probate court.
The Street’s recent article on this subject asks “What Is Probate and How Can You Avoid It?” The article looks at the probate process and tries to put it in real-life terms.
Probate is an estate planning process that works within a probate court, with a probate judge presiding over the proceedings. Usually, surviving families and other interested parties initiate a probate process, to address issues relating to the deceased individual's estate settlement. These include:
- The handling of the deceased’s valid will;
- Properly citing and categorizing the deceased’s assets;
- Appraising the deceased's estate and property;
- Paying off any of the deceased's existing debts; and
- Distributing the deceased's property to those directed by the will (or, if there's no will, the probate court will direct the distribution of estate assets, according to the laws of intestacy).
The executor handling the deceased's estate will typically start the process. Here are the basic steps:
File a Petition. The estate's executor will file a request for probate where the deceased resided. The court will then assign a date to confirm the executor and, once that is done, the probate judge will officially open the probate case.
Notice. The executor must send a notice that the deceased's estate is officially in probate to all applicable beneficiaries, heirs, debtors and creditors.
Inventory Assets. The executor will then collect, list, and present a value for all of the deceased's assets and supply this to the probate court.
Pay the Bills. The executor will need to pay all outstanding debts owed by the estate.
Complete Any Tax Returns. The estate may also have existing tax returns that need to be filed. An accountant can be hired by the estate to work on this, or the executor may choose to file the taxes on his or her own.
Pay the Heirs. The executor can now distribute the remainder of the estate to any heirs, according to the will's instructions.
Close the Estate. Finally, the executor will file paperwork with the court and file to close the estate.
Probate can be a long and tiresome process. Ask your estate planning attorney about the ways you can avoid probate or remove certain assets from this process.
Reference: The Street (July 29, 2019) “What Is Probate and How Can You Avoid It?”