What is Probate? How does it work?

By |2021-07-17T22:18:43+00:00July 20th, 2021|Estate Planning|

What is probate? How does it work?

Simply put, probate is the re-titling (change of ownership) of assets that require a paper transfer. These assets could include real estate, automobiles, bank accounts, invested assets, pension plans, and other items.

When a person dies, the legal process begins to affect the direction of a will either left by the deceased or directed by the courts in the absence of a written Will.

Probate is a process that identifies the deceased person’s assets and provides for the legal transfer to the intended beneficiaries. The process can identify debts, value property, and pay debts and taxes.

Probate involves the filing of paperwork, public notices, and court appearances by lawyers. Attorneys are paid a fee from the estate to provide legal services, and the amount of these fees are determined by the extent and often the value of the estate.

The standard process would begin with the person named the “personal representative” as directed by the deceased’s will. If a person dies without a Will, the representative will be appointed by the court. The personal representative hires the attorney typically to help direct them through the legal process. The court and the public are notified of the decedent’s passing and put on notice that the probate case is open. The Will is validated, and the list of assets is presented to the court and any debts and unpaid taxes.

Known creditors and beneficiaries of the estate are notified.

The representative must manage the assets during this process and make sure that the assets are secure. If instructed by the courts, the representative may be required to sell or change an asset. This instruction may be from details listed in the will and may need to comply with any specific bequests, such as a cash gift or disbursement.

In most cases, probate can last for 9 months to many years, depending on the complexity of the estate. Once the court has determined the estate is ready to close, the probate judge provides the documents to transfer inherited assets to the correct ownership legally, and the estate is transferred. The court then will close probate, and the estate will be finished. The personal representative will file the final tax return for the decedent, and the probate process will come to an end.

 

 

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About the Author:

Bill Broich is a well-known annuity expert with over 30 years of experience. He has written hundreds of articles on annuities and other financial topics, and has been a featured commentator on TV, Radio and the Internet.

Toll-Free: (360) 701-6209 | GVA, Annuity.com | Email: bbroich@msn.com