| The probate process seems to be a long, drawn-out and expensive process
for settling a deceased person's affairs. Many times the probate may be fairly
straight-forward and not require an attorney. You may wish to have a probate attorney
review your case. This information is not legal advice and is meant to give
you an overview of the process.
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| What is Probate? |
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| The term probate means "to prove" the will through a proceeding that usually
occurs in court. However, a will does not always exist (or is not available) and laws
are established in each state to deal with the orderly distribution of assets to those
who are entitled to inherit them.
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What is Involved in Settling an Estate? |
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- What personal property and real estate (if any) is owned by the deceased person?
- Paying any taxes or debts that the deceased person may owe (including costs of doing probate), and
- Distributing all real and personal property which remains to the rightful beneficiaries.
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| This property is said to be owned by the "estate" of the deceased person and must remain
so until the judge or other court-appointed person says it may be distributed. However, it is
often necessary to sell the property in order to satisfy the debts of the estate to close the
probate. If you have a property that you need to sell, please contact us for immediate assistance.
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How Long Does It Take to Settle an Estate? |
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| The entire probate process will differ from state to state and the size and complexity
of the "estate." In some states, small estates may even avoid a formal probate, however the debts
must still be paid. The minimum time an estate will likely be open is probably from six months to
a year, and often more depending on the complexity of the estate.
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Executor / Executrix |
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| The Executor or Executrix of an estate often find themselves faced with the duty of
being the Personal Representative of the Probate of the estate, a legal process that involves
the accounting of the assets, liabilities and taxes. Below you will find a general list of the
duties and liabilities of the Personal Representative. These duties and liabilities may vary
depending on your state and county. Optimum Yield, Inc.™ does not provide legal advice.
Please consult your attorney if you have specific legal questions regarding your estate.
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Duties & Liabilities of Personal Representative |
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When the court appoints you as personal representative of an estate, you become an
officer of the court and assume certain duties and obligations. An attorney is often sought
to advise on these matters but is not required. You should however understand the following:
- Managing the Estate's Assets
- Prudent investments
You must manage the estate assets with the care of a prudent person dealing with someone
else's property. This means that you must be cautious and may not make any speculative investments.
- Keep estate assets separate
You must keep the money and property in this estate separate from anyone else's, including your own.
When you open a bank account for the estate, the account name must indicate that it is an estate
account and not your personal account. Never deposit estate funds in your personal account or
otherwise mix them with your or anyone else's property. Securities in the estate must also be held
in a name that shows they are estate property and not your personal property.
- Interest-bearing accounts and other investments
Except for checking accounts intended for ordinary administration expenses, estate accounts
must earn interest. You may deposit estate funds in insured accounts in financial institutions,
but you should consult with an attorney before making other kinds of investments.
- Other restrictions
There are many other restrictions on your authority to deal with estate property. You should
not spend any of the estate's money unless you have received permission from the court or
have been advised to do so by an attorney. You may reimburse yourself for official court costs
paid by you to the county clerk and for the premium on your bond. Without prior order of the court,
you may not pay fees to yourself or to your attorney, if you have one. If you do not obtain the
court's permission when it is required, you may be removed as personal representative or you
may be required to reimburse the estate from you own personal funds, or both. You should consult
with an attorney concerning the legal requirements affecting sales, leases, mortgages, and
investments of estate property.
- Inventory of Estate Property
- Locate the estate's property
You must attempt to locate and take possession of all the decedent's property to be administered
in the estate.
- Determine the value of the property
This can be done yourself or you can consult a professional to assist you.
- File an inventory and appraisal
You must file with the court an inventory and appraisal of all the assets in the estate.
- File a change of ownership
At the time you file the inventory and appraisal, you must also file a change of ownership
statement with the county recorded or assessor in each county where the decedent owned
real property at the time of death.
- Notice to Creditors
You must mail a notice of administration to each known creditor of the decedent within
two to four months after your appointment as personal representative.
- Insurance
You must mail a notice of administration to each known creditor of the decedent within
four months after your appointment as personal representative.
- Record Keeping
- Keep accounts
You must keep complete and accurate records of each financial transaction affecting
the estate. You will have to prepare an account of all money and property you have
received, what you have spent, and the date of each transaction. You must describe
in detail what you have left after the payment of expenses.
- Court review
Your account will be reviewed by the court. Save your receipts because the court may
ask to review them. If you do not file your accounts as required, the court will order
you to do so. You may be removed as personal representative if you fail to comply.
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If there is any way we can help you with the sale of your property,
call us at 1-800-800-8538. We are here to help.
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