What is probate is a question every American citizen should be asking. Probate is the legal process used to determine rightful heirs of assets which belonged to a person who has died. Probate is required in every state of the Union unless a person establishes a trust to protect their assets.
This article provides an overview of
what is probate and why it is necessary. Estate planners claim less than 20-percent of heirs receive inheritance left for them in the decedent's Last Will and Testament. This stems from the fact that outstanding debts, estate taxes, attorney fees and funeral expenses must be paid before asset distribution can occur.
The
Last Will and Testament is an important element of probate. The Will is used to outline who should receive personal belongings, real estate, automobiles and valuable assets such as jewelry, artwork, collectibles and financial holdings. When a person dies without executing a Will, everything the decedent owned is transferred to probate and distributed according to probate law.
The Will is also used to appoint a
probate personal representative to manage all aspects of the estate. Oftentimes, probate executors require assistance from an estate planner or probate attorney to ensure legal documents are properly submitted through the court.
The probate administrator is responsible for a variety of duties. They must obtain property appraisals for valuable assets such as real estate, automobiles, antiques and jewelry and provide an inventory list to the court.
Administrators are responsible for paying outstanding debts, maintaining real estate, submitting various forms to government agencies such as the IRS, Medicare or Social Security Administration, and distributing remaining assets to named beneficiaries.
Estate planning experts suggest designating a probate executor that is capable of handling finances and able to make difficult decisions under stress. Estate planners also recommend appointing a secondary executor. If the primary Administrator is unable or unwilling to perform duties, the second executor can quickly assume duties.
The
probate process generally takes six to nine months to complete. If family disputes erupt or someone contests the Will, probate can drag on for years. During probate, the Administrator is responsible for paying estate related expenses such as legal fees, mortgage or automobile payments. If the estate does not possess the financial means to cover expenses, the judge can order assets to be sold.
Probate is handled according to laws established in each individual state. Some states require court supervision, while others grant the Administrator full authority to take actions deemed necessary to property manage the estate.
Executing a last will does not keep assets out of probate, but can expedite the process. Several options exist for creating a Will. Forms can be downloaded from the Internet or purchased through office supply stores. These documents must be witnessed and notarized in order to be legally valid.
Individuals with assets totaling more than $50,000 should discuss available options for asset protection with an estate planner or
probate attorney.
Simon Volkov is a real estate investor who specializes in the purchase of probate assets. Simon has assisted numerous probate executors in liquidating assets to eliminate financial burdens of estate administration. Simon also offers
cash for inheritance to heirs entitled to assets held in probate. Learn more about probate, inheritance and estate planning by visiting
www.SimonVolkov.com today.
