Probate is the process by which a court oversees the distribution of a deceased person's assets. Whether a probate petition needs to be filed will depend upon the value of the deceased person’s estate and whether they had a trust.
If the deceased person had a good, funded trust, probate is not going to be necessary; however, if the estate value is above the statutory limit of 166,250, then an action must be filed. Value does not mean net value. It means gross value. If the value is under the threshold limit, probate may not be needed at all, and if it is, then a shorter proceeding may be available. You should consult with an attorney to help you determine the best course of action. Clients always ask - how long will this take? And how much will it cost me? The process takes around 12-18 months. And, the costs will include any filing fees, publication fees, and appraisal fees. In addition, there are executor and attorneys’ fees which are set by statute and not paid until the end of the case. By way of example, for a million dollar estate (and remember the value is based on the fair market gross value NOT the net value), the executor and attorney split around $46,000 in fees. Filing and Petitioning the Court and The Hearing (Steps 1 and 2) The first step in the probate process is to file a petition with the appropriate court. This is typically done in the county where the deceased person lived. The petition will ask the court to appoint an executor or personal representative who will be responsible for managing the estate. The court will also schedule a hearing to review the petition and any objections that may be raised. Hopefully, you will walk away from that hearing with letters which I consider to be the gate openers. With letters in hand, you take responsibility for the estate administration, and are free to contact banks, and other account holders. Prior to those letters, you cannot do much in the way of investigating the deceased person’s assets and liabilities because account custodians will not share information with you. In addition the letters allow you to take control of the assets and eventually distribute and disperse them. It's important to note that there are different types of probate proceedings, depending on the value and complexity of the estate. Small estates may be eligible for a simplified probate process, which can be faster and less expensive. A probate attorney can help you determine the best course of action for your specific situation. Inventory and Appraisal, Creditor Notification and Procedure (Steps 3-4) Once the executor or personal representative has been appointed, they will be responsible for gathering and inventorying all of the deceased person's assets. This includes real estate, bank accounts, investments, and personal property. The assets will need to be appraised by a professional to determine their fair market value. This information will be used to determine the value of the estate and to prepare tax returns. Some assets may be exempt from the probate process, such as property held in joint tenancy, life insurance policies with designated beneficiaries, and retirement accounts with designated beneficiaries. These assets will pass directly to the designated beneficiaries outside of probate. At this time, the executor needs to give notice to any known creditors that there is a probate action to administer the deceased person’s assets. If any creditors step forward, and makes a claim, the personal representative will accept, reject, or partially accept/reject the claim within 30 days of receiving the creditor claim. If a claim is rejected, the creditor has an additional 90 days to file a lawsuit against the estate to recover the alleged claim. Paying Debts and Distributing Assets (Step 5-6) After all of the assets have been identified and valued, the executor or personal representative will need to pay any debts owed by the deceased person, including taxes, funeral expenses, and outstanding bills. Once all debts have been paid, the remaining assets can be distributed to the heirs named in the will or to the deceased person's heirs-at-law if there is no will. Conclusion Probate can be a complex and time-consuming process, but it is necessary to ensure that a deceased person's assets are distributed according to their wishes. By understanding the probate steps involved, you can be better prepared to navigate the process and ensure that your loved one's estate is handled properly. If you have any questions or need assistance with the probate process, please contract me. Again, I’m in Los Angeles but handle probate actions throughout the state. You can contact my office at 818-248-2183, or book an appointment online at LawyerCMA.com. Comments are closed.
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