Probate

What is Probate?

Probate is the formal legal process that gives recognition to a will and appoints the executor or personal representative who will administer the estate and distribute assets to the intended beneficiaries.

When is Probate Necessary?

Certain assets are subject to probate. Real property, tangible personal property, bank accounts, brokerage accounts, to name a few. Even some beneficiary-designated assets, such as an IRA or a 401(k) plan are subject to probate if no beneficiary is named and the terms of the account or plan provide that the assets are to be distributed to the estate of the decedent. Probate is necessary even if you had a valid will.

What is the Process?

If you have a will, the person you named as executor will petition the court to be appointed as personal representative of your estate. If you don’t have a will, anyone can petition the court to be appointed as administrator of your estate. Even your creditors. Once the personal representative or administrator is appointed, that person begins the administration process, which includes filing an inventory with the court, publishing notices in the newspaper, paying bills, selling assets, closing accounts and filing and paying income taxes for the decedent and the estate. When the estate is ready for distribution and the statutory period for creditor claims has expired, the personal representative or administrator files an accounting, report and petition to distribute the estate to the named beneficiaries or your heirs by intestate succession. The court oversees the entire process and resolves disputes.

Should You Avoid Probate?

Probate is a court-supervised process of administering your estate. Delays associated with petitioning the court, waiting for statutory creditor claim periods to end, and costs including court filing fees, publication fees and attorney fees make probate a long and expensive process. The court file is public, which many people seek to avoid.