When a loved one passes away‚ his or her estate often goes through a court-managed process called probate or estate administration where the assets of the deceased are managed and distributed. If your loved-one owned his or her assets through a well drafted and properly funded living trust‚ it is likely that no court-managed administration is necessary‚ though the successor trustee needs to administer the distribution of the deceased’s assets. The length of time needed to complete the probate of an estate depends on the size and complexity of the estate and the local rules and schedule of the probate court.
Every probate estate is unique‚ but most involve the following steps:
An objection to a Will‚ also known as a “Will contest” is a fairly common occurrence during the probate proceedings and can be incredibly costly to litigate.
In order to contest a Will‚ one has to have legal “standing” to raise objections. This usually occurs when‚ for example children are to receive disproportionate shares under the Will‚ or when distribution schemes change from a prior Will to a later Will. In addition to disputes over the tangible distributions‚ Will contests can be a quarrel over the person designated to serve as Executor.
Probate is primarily a process through which title is transferred from the name of the deceased to the names of the beneficiaries.
Certain types of assets are what is called “non-probate assets” do not go through probate. These include:
Executors are reimbursed for all legitimate out-of-pocket expenses incurred in the process of management and distribution of the deceased estate. In addition, you may be entitled to statutory fees‚ which vary from location to location and on the size of the probate estate. The Executor has to fulfill his or her fiduciary duties on behalf of the estate with the highest degree of integrity and can be held liable for mismanagement of estate assets in his or her care. It is advised that the Executor retain an estate administration lawyer and an accountant to advise and assist him with his or her duties.
The cost and duration of probate can vary substantially depending on a number of factors such as the value and complexity of the estate‚ the existence of a Will and the location of real property owned by the estate. Will contests or disputes with alleged creditors over the debts of the estate can also add significant cost and delay. Common expenses of an estate include executors fees‚ attorneys fees‚ accounting fees‚ court fees‚ appraisal costs‚ and surety bonds. These typically add up to 2% to 7% of the total estate value. Most estates are settled though probate in about 9 to 18 months‚ assuming there is no litigation involved.