The personal representative must conduct a thorough search of the decedent’s papers and financial statements in searching for creditors. When the personal representative has completed this search, she is presumed to have done her duty regarding creditors, and she may file with the court an affidavit concerning reasonably ascertainable creditors.
If you’re the Personal Representative of the estate in a probate matter, you should know that death does not automatically eliminate the decedent’s debts. If you want to understand how to handle creditors in probate, you must learn how to properly notice creditors, respond to creditor claims, and negotiate with creditors.
If you think a lawyer drafted the will but you’re not sure, go through the deceased person’s checkbook and look for payments to a lawyer or law firm. The local probate court. It’s not likely, but the deceased person may have deposited the will with the local probate court. You can ask the court.
The testator, meaning the person writing the will, names an executor in the will whose job it is to move the will through the probate process. The people who inherit from the will are the beneficiaries. The steps involved in the probate process must be carried out carefully and in a certain order.
The probate court process is simply the legal process by which the court oversees the settlement of an estate after someone dies. You’ll want to avoid probate court if you can, but many of the steps in the process of probating a will are steps you’ll need to take regardless of whether the will is probated formally in the court system.
A probate bond is purchased by the executor and typically reimbursed by the estate. The bond guarantees that you will comply with federal and state laws and complete your duties ethically. If you do not fulfill your duties as an executor, someone can make a claim against the bond.
If the jointly owned asset is real estate, probate is the only way to remove the deceased party from the title. In some states, small estates (with values of less than $50,000 or $100,000 may not require probate regardless of titles changing hands. 2. File Documents with Probate Court.
A simple estate plan can be probated in as little as three months. If an estate is complex or the will is challenged, the process can take a year or longer. An estate may be subject to probate whether a will exists or not, depending on how assets are held in the estate.
The court’s role is to ensure that the executor is acting fairly and that all obligations of the estate have been satisfied. This process is ultimately of benefit to the executor, since you will minimize your legal risk by acting under the supervision of the court. 8. Close the Estate.
Close the Estate. The court will formally close the estate, completing the probate process and your role as executor. The probate process, while intimidating to many, is a manageable process and will help provide some structure to the estate settlement process.
If the individual dies without a will, the courts will select a personal representative. Upon taking an oath and being sworn in, the executor will receive Letters of Testamentary. This document informs all third parties, like banks and investment firms, that you have the legal authority to act on behalf of the estate.
In addition to a general understanding of your legal needs, the lawyer may want to know who else is involved with the case and their relationship to you. For example, in some probate matters, a client visits the lawyer to seek help for his or her parents or siblings.
The first meeting with an attorney usually involves the exchange of a lot of information.
At the consultation, be prepared to talk about your case. The lawyer may not too many details of your case before you sign a fee agreement, but you should be prepared just in case.
Even if a lawyer doesn't ask for documentation beforehand, it's still a good idea to bring a copy of all relevant documents to the meeting. Spend some time thinking about what you may have on hand. Try to organize the documents in a logical manner before you meet with the lawyer.
To save money on legal fees, take the time to select a good lawyer, prepare well for your first meeting, and do everything you can to reduce the time that lawyer will have to spend on your case . Even eliminating one email exchange could save you hundreds of dollars.
Do everything you can to reduce the time that lawyer will have to spend on your case. Even eliminating one email exchange could save you hundreds of dollars. ...
After you decide on which attorney to hire, you’ll sign a fee agreement and officially begin your relationship with your lawyer. The first meeting with an attorney usually involves the exchange of a lot of information. You will spend a good deal of time explaining to the attorney the details of your legal issue and answering his or her questions. He or she will spend a good amount of time discussion and laying out a plan. If you think you might get nervous or forget something, you could practice this conversation with a friend, or you could write down what you want to say.
Once all of the creditors have been paid, the executor or personal representative distributes the remaining assets according to the testator's wishes if there is a will, or according to state intestacy statutes if there is no will.
Step 1: Filing. Once a will has been located, the first step in the probate process is filing a petition with the probate court requesting that the will be probated. The probate petition asks that the executor formally be appointed to act on behalf of the estate.
The entire probate process can take a few months to a year or longer , depending on the estate's complexity and the court's calendar.
Assets include real estate, vehicles, investments, bank accounts, cash, personal property, intellectual property, and pets.
The executor takes legal control of these assets. On the other hand, assets owned by a trust, such as a living trust, are not probate assets and are not distributed by the probate court. The executor or personal representative must inform all known creditors of the estate proceeding.
The executor or personal representative must pay all of the estate's debts from the estate's assets. In addition to pre-existing debts such as loans, mortgages, utility bills, and credit cards, a final tax return must be filed for the estate, and any taxes due must be paid. Funeral expenses must also be paid.
Probate is the legal process a will must go through to establish its validity before anything can be distributed to the beneficiaries. The testator, meaning the person writing the will, names an executor in the will whose job it is to move the will through the probate process.
If you’re interested in understanding when you don’t have to go through probate, we’ve written about when probate isn’t necessary and how to avoid probate for your loved ones.
If the deceased had a lot of debts and not a lot of assets, you may be tempted to skip probate altogether. After all, what’s the benefit if there’s nothing for heirs to inherit?
When someone dies, the beneficiaries of their estate have a right to the inheritance provided for them in a will. If there’s no will, they have a right to the inheritance designated by state law. And you, as the executor, have a duty to maintain those assets for the benefit of the beneficiaries.
So now that you understand why you should probate the will, how do you go about it?
No, every will does not have to be probated. Almost every state has an exemption from the probate process for small estates — those estates whose value falls below a certain monetary threshold. States that don’t have a small estate exemption usually have a simplified procedure for smaller estates.
Lots of Americans—more than half, by some estimates—don't leave a will. So if you can't find one, the reason may simply be that the deceased person never made a will. It's not a cause for worry. Whether or not there is a will doesn't change the need for probate.
If you have reason to believe that someone has the will but doesn't want to produce it, you can ask the probate court to order that person to deposit the will with the court. But talk to a lawyer before you go to court—or mention the idea to anyone you suspect of hiding the will. Talk to a Lawyer.
These handwritten wills are called "holographic" wills and are valid in about half the states. For your state's rule, see " Holographic Wills .". While you're looking, also pay attention to: Codicils. A codicil is a document that changes or adds to the terms of a will.
If you think that's the case, call the lawyer to notify him or her of the death. The lawyer will then be required to file the will with the probate court, and you can get a copy. If you know the lawyer's name but don't have contact information, you can probably find it online or get it from the state bar association.
By law, most states require that you deposit the original will with the probate court in the county where the person lived within 10 to 30 days after it comes into your possession.
If you don't find anything, consider these possibilities: Safe deposit boxes. Many people follow the common advice to keep their wills in their safe deposit box. This keeps the document safe, but it's usually a bad idea for other reasons, which become obvious as soon as you need access to the box and can't get it.
If the bank won't cooperate, you can go to court and ask for an order allowing you access to the box solely for the purpose of finding the will. The deceased person's lawyer. If the deceased person hired a lawyer to draft the will, the lawyer may have the original signed document or a copy of it.
Common estate creditors include the US government (the California Franchise Tax Board, the IRS, and the California Department of Health Services) and both secured and unsecured debt.
The Personal Representative must pay off estate debts in a specific order under California Probate Code Section 11420. This statute lays out the order in which estate debts must be paid:
The Personal Representative has a duty to notify any “known or reasonably ascertainable creditors of the decedent” concerning the decedent’s death. Here is a sample of the format this notice should take.
The Personal Representative must respond to all claims in writing. You can allow or reject the claim in whole or in part. You must file the allowance or rejection (form DE-174) with the court clerk and send a notice to the creditor with a copy of the allowance or rejection.
If the estate has funds to pay the debts and creditors have filed a claim, you may wish to negotiate the debts to preserve the maximum amount for the heirs or beneficiaries. The first step to negotiating with creditors is to verify that the debt is authentic. Not all apparent debts are equally valid.
If the estate’s debts are greater than its assets, it is said to be “ insolvent”. If insolvent, not all debtors are going to be paid back in full. Where an estate is insolvent that court requires that all creditors who have filed a valid claim will get paid under a pro-rata division of the estate assets.