Probate

Wills, Probate, and Executors: Thirteen-Step Guide To Estate Administration

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• published: 11 Jun 2016
• views: 1530

For the second podcast, I prepared a thirteen step overview of settling an estate in case you ever get asked to be someone’s executor of estate (or, if your prefer the modern term, personal representative). The probate process is a creature of state law that is mostly governed by each state’s statute, so it’s not an exaggeration to say that every state is different--the steps of administering an estate in California will have way different requirements than Texas. Still, there are general steps that are generally followed in all states, and I provided a twenty minute overview of what the process entails if you’re interested in getting the lay of the land for administering someone’s estate. #1. Funeral Arrangements #2. Find the will, identify assets, protect against theft and conversion, tally expenses #3. Determine probate assets vs. non probate assets #4. Petition to probate court, usually to admit the will into probate (standard form documents)...if no will, petition for administration and appointment of representative #5 The Will must be “proved” #6 The court will sign an order admitting the will to probate and issue a Letters Tesamentary to the executor--this is a grant of authority to pay bills and distribute the assets #7. Most wills waive the bond, so no need to guarantee performance #8. Formal or Informal: If formal, court supervision. If informal, inform at completion. Universal succession--automatic title grant, obligation to pay creditors. #9. Formal: Assets are put on inventory sheet for the court--appraisal may be required. #10. Collect all assets, and call up and use Letters Testamentary if necessary. Establish a new bank account: “Executor for the estate of ____________” transfer all property to this account. Sell the car, write the check for “Estate of ___________” ….pay debts, attorney fees, and other expenses. #11. “Holding period” --assets get assembled, creditors get to file claims. Is it valid or not? If valid, pay it up. Otherwise, tell them to go to the judge. #12. During holding period, gauge tax liability. Estate, inheritance, and death taxes. If yes, file returns and pay taxes. Gotta sell the car to pay the tax bill? Do it. If family allowance request, take it to the judge. #13. Then, you tell the judge you’re ready to disburse, and he’ll approve. Notice: This article, which I believe may be of interest to readers, is for general information and entertainment purposes only. It only reflects my best understanding of the topic at hand and should not be relied upon as legal or investment advice.