WESOS Ask Jade December 2024 What is Probate?

What Is Probate?

-Probate is the legal process for reviewing the assets of a deceased person and determining inheritors.

-Probate proceedings typically focus on the existence, authenticity, and validity of a will.

-Probate can be initiated with or without a will.

-Even with a valid will, your estate will be subject to probate.

-Individuals can avoid exorbitant probate costs and complexities by having an estate plan with a Trust or using investment vehicles that do not require probate.

Probate with a Will

The probate process is a court-supervised proceeding in which the authenticity of the will is proven to be valid and accepted

The court officially appoints the executor named in the will, which gives the executor the legal power to act on behalf of the deceased

The Executor

A will typically designates a legal representative or executor to be approved by the court. This person is responsible for locating, overseeing, accounting for, and disbursing all the assets of the deceased.

The executor is required to pay off any taxes and debt owed by the deceased from the probate estate.

Creditors have limited amount of time (usually 1 year) from the date of death to file a claim against the estate for money owed to them.

The executor is also responsible for filing the final income tax return on behalf of the deceased.

Most assets that are subject to probate come under the supervision of the probate court in the place where the decedent lived at death. The exception is real estate. Probate for real estate may need to be extended to any county in which the real estate is located.

Probate without a Will

When a person dies without a will, he is said to have died intestate.

The probate process for an intestate estate includes distributing the decedent’s assets according to state laws, which determine the heirs.

The court will appoint or approve an administrator to oversee the probate estate. The administrator functions as an executor, carrying out all the same functions as above.

Avoid Probate

Creating and funding a Revocable Trust (sometimes irrevocable) for your real estate, accounts, policies, and other assets

Name Beneficiaries/Transfer on Death/Payable on Death on all accounts/policies (if adult and competent)

This can avoid significant legal costs, save your family/beneficiaries a lot of time, keep your estate private, and avoid tax.