Your Estate and Probate
What is Probate?
It is simply a legal process of transferring
assets to your heirs provided for in
your will. If there is no will, your
assets will be transferred to your heirs
in accordance with the state laws of
intestacy.
Community Property must be
probated if it is left to someone other
than a surviving
spouse.
There are a few properties that escape
the sometimes-costly probate process.
They are:
- Assets held in joint tenancy
- Death
benefits from qualified retirement
plans, Keogh plans and IRAs which
name a designated beneficiary
- Assets held in trust created
during the lifetime of the estate owner
- Annuity
and life insurance policy proceeds
which are not paid to your estate
 Your Will and Probate
If you leave a
valid will, it will be offered upon
your death for probate.
An executor will be appointed. In
absence of a will, the court will appoint
an
administrator to serve in a similar
capacity. In this capacity either
the administrator or executor will gather
information about your assets, collect
your assets
that
are
subject
to probate, pay income and death
taxes,
notify creditors and prepare an inventory
and appraisals of your assets.
He
or she makes an accounting of these
assets and petitions the court
for distribution
to creditors, heirs and others named
in your will. Final distribution
will be made upon approval of the court.
An
estate is a separate tax entity while
it is open in the probate process,
and
must file and pay any taxes due
until it is closed. The size and complexity
of your estate will determine the
length of the process.
During probate
your executor or administrator works
under the supervision
of the
court. The court must approve
all distributions and expenses.
Probate: Advantages
& Disadvantages >
This document is for general information
only, it is not a representation of legal
or tax opinion nor should it be considered
legal or tax advice. For full details
on this information you should contact
your own legal or tax counsel. |
