Estate Planning Newsletter

Probate

Probate, a Latin term meaning “to prove the will,” is a court-supervised process that settles a person’s affairs after death.

To ensure that the decedent’s final matters and wishes are handled correctly and without bias, most states have probate courts (or special departments of the court) to oversee the settling of estates. Probate may occur even if there is no will.

Court Appointees

Usually the court will appoint one of 2 types of persons to oversee the decedent’s final affairs:

• Executor – Typically the person, bank or trust company named in a will to administer the estate
• Administrator – Typically appointed if the decedent died without a will (intestate)

On behalf of the decedent, the probate court makes certain that:

• Any final bills and expenses are paid, including any taxes owed
• Any assets remaining are distributed to the beneficiaries named in a will
• If there was no will, any assets remaining are distributed to the correct heirs under the laws of intestate succession

What Qualifies for Probate?

The deceased person’s estate must have assets (such as real estate, bank accounts, securities) before probate occurs. Each state sets its own requirements on when probate is necessary, usually according to the value of an estate’s assets.

In some states, the assets must be at least $10,000 to go through probate, or modified probate. However, other states allow assets of up to $100,000 before probate occurs.

These assets would not include any real or personal property of the decedent’s that others receive directly through joint tenancy, trusts, life insurance benefits, right of survivorship or other means.

Reasons to Avoid Probate

The primary disadvantages of probate are:

• The time it takes for an estate to be administered through the probate process
  (which can span anywhere from several months to several years)
• The cost involved in the probate process (which can include fees for the court, estate administrator, attorney and taxes)

© 2025 NextClient.com, Inc. All rights reserved.

• Charitable Trusts
  It is possible to set up a trust for charitable purposes. Charitable trusts are quite common, but certain requirements must be met. Purpose of a Charitable Gift Reasons for charitable gifts funded through... Read more.
• Court-Imposed Transfers: Constructive Trusts
  A constructive trust is a remedy imposed by a court when a person has wrongfully attained property in an inappropriate way. The court will undo the transaction and order that title to the property go to the rightful... Read more.
• Income Tax Limitations on the Charitable Deduction
  Taxpayers who make contributions to qualified charitable organizations are entitled to a tax benefit in the form of a charitable deduction on their income taxes. However, the issue becomes more complex when a non-U.S. citizen makes a... Read more.
• Valuation of Estate Assets for Tax Purposes
  Assets owned by a person at the time of their death, whether real or personal property, is commonly referred to as the decedent’s “estate.” After the person dies, the property or proceeds from the sale of such property... Read more.

• Popular Dance Co. Shen Yun Accused of Forced Child Labor, Brutal Conditions In New Lawsuit
• Birthright Citizenship at Stake as Supreme Court Considers Injunction Limits
• Ohio Father Who Fatally Struck A Deputy Following His Son’s Fatal Shootout with Police Files $25M Lawsuit
• Nearly 30 States Accuse CVS of Medicare Fraud in New Lawsuit
• Michigan Department of Corrections Hit With $500M Lawsuit Over Recorded Strip Searches