Probate is a court-supervised process intended to ensure the validity of a lasts will and to protect the distribution of assets after a person has died. If there is no last will, probate still takes place, according to the article “Probate—Courts protecting you after death” from Pauls Valley Democrat.
Every estate that owns property must be probated unless the title or ownership of the property has been transferred before the person died by gift if the property is owned jointly with another person, if it passes by direct beneficiary designation, or if the property is in a Trust. If a person died without a last will, probate still takes place, but the guidelines used are those of the state law where the person died.
In all cases, it’s better to have a last will and decide how you want your assets distributed. For all you know, your state law may give everything you own to an estranged third cousin and her children, who are perfect strangers to you.
If you don’t have a last will, referred to as dying “intestate,” the court decides who will serve as your administrator (executor). This person will be in charge of distributing all of your worldly goods and taking care of the business part of settling your estate, like paying taxes, selling your home, etc. Without a last will, the court picks a person, and it might not be the person you would have wanted.
Here are the basic steps in probating an estate once the probate petition is filed:
Initial application. This is where the court affirms its jurisdiction and identifies all known heirs, and the personal representative (executor) is identified.
Letters Testamentary. This document is issued to the personal representative. This is a judge signed document proving to others, like banks and investment custodians, that the personal representative is legally permitted to handle your property and act on behalf of your estate.
Probate. This court process collects, identifies, and accounts for all assets of a decedent. The representative must document any money going in and out of the estate during the administrative process.
Written notice must be given to all and any known heirs. This can lead to relatives and others believing they have a claim on your estate and then challenge the provisions of your last will with the court.
Notice is also provided to creditors, who have at least 120 days after the notice is provided to make a claim on the estate. This timeframe varies by jurisdiction. In some jurisdictions, these notices are published in local newspapers once a week for two or more consecutive weeks; once they receive fair notice, general creditors who fail to file a claim lose their right to ever file a claim on the estate.
An estate plan is created to minimize taxes, maximizing privacy for the family and heirs, and transfer ownership of assets with as little red tape as possible. Failing to plan properly can lead to a probate taking months, and in some cases, years.
Reference: Pauls Valley Democrat (July 1, 2021) “Probate—Courts protecting you after death.”