Basics of Estate Planning: 3 Common Probate Questions

When someone passes away, they leave behind assets, property, and items that may have both sentimental and monetary worth for remaining family members and loved ones. A person's estate is everything they own when they pass away.

An estate typically ranges in size from $50,000 to $250,000, according to Estate Exec. Estates range in value from $11,000 to over $1,000,000. Eleven percent of estates fall in the former category.

After a person's death, some assets are given immediately to their heirs. Pay-on-death bank accounts, insurance policies with named beneficiaries, trust funds, and jointly owned assets with survivorship rights are some examples of these non-probate assets. A procedure known as probate is required for other assets.

What Exactly Is Probate?



In the legal procedure of probate, the court is in charge of directing the administration of the estate. The procedure entails confirming the testator's wishes, paying off debts, and transferring the testator's assets to beneficiaries. Without a will, the estate passes to the heirs designated by the state's intestacy statutes.

Property, bank accounts, investments, and personal property are all assets that must go through the probate process.

In most cases, the estate representative starts the procedure. If a will exists, it should appoint an executor who will be in charge of allocating the assets.

However, a significant number of fatalities occur without a will. Only one-third of Americans have an estate plan, according to a Caring.com research.

An interested party may start probate when someone passes away without leaving a will. The court may be asked to open the estate by spouses, adult children, other relatives, and creditors.

An interested party may petition the court if the estate representative fails to initiate probate promptly.

The procedure of estate administration may be foreign to individuals who have never dealt with it before. The three most typical inquiries about the probate procedure are addressed below:

1. How long after someone's death may you file for probate?

The time frame for commencing probate varies by jurisdiction and applies to the estate representative or other interested party. Each state has unique laws and rules regarding the window of time for starting the process.

Some legal systems don't impose a rigid timetable. In New York, for instance, there is no time restriction or statute of limitations on approving a will.

There are time restrictions set forth by other jurisdictions. For instance, California permits someone to start a probate process up to a year after a death.

It is best to start the probate process following the individual's passing as soon as possible because it can take months or years to complete.

2. How soon after a death can property be transferred?

Property ownership must be transferred to a new owner if a property owner passes away.

A person's home might not be subject to probate under some situations. The surviving owner keeps ownership if the property is held as tenants in common or tenants by the entirety. Living trusts and transfer-on-death documents can also be used to convey assets directly to beneficiaries without going through the probate process.

Property owned separately or by tenants in common is susceptible to probate. Your jurisdiction's rules and regulations will determine how long you have to transfer property after it becomes subject to probate. When a property enters the probate estate, the court decides who gets it based on whether there is a valid will or state intestacy statutes. The sale of the property may be mandated by the court in order to pay off debts or to distribute funds to beneficiaries.

The county recorder's office must issue a new deed for the house to the new owner. It may be quicker to transfer property outside of probate than inside of probate. A fresh deed can be obtained from the county recorder's office in two weeks to 90 days. The probate procedure can take several months to two years, depending on the intricacy of the estate.

3. What Does a Petition for Discharge in the Probate Process Mean?

A petition for discharge is a crucial stage in the probate procedure that enables beneficiaries and heirs to collect assets from the decedent. To obtain permission from the court to disperse the estate's assets and close it, the personal representative submits a petition.

The petition outlines the distribution of the assets to the beneficiaries. The amount of the attorney's fee and the personal representative's compensation is also disclosed.

The executor can distribute the assets to the beneficiaries when the court grants the request.