Losing a loved one is never easy, and dealing with their estate can be overwhelming. If the deceased person however, owned real property or had assets valued at over $74,000 (as of 2023), opening up probate may be necessary. While probate can seem daunting, there are several reasons why it’s important to go through the process. Below are six compelling reasons why you should consider opening probate on behalf of a loved one who has passed away with significant assets.
Appoint a Personal Representative or Executor
The probate process is necessary to appoint a personal representative or executor to manage the estate’s administration. And it provides the legal framework for doing so.
During the probate process, the court appoints a personal representative or executor who is responsible for managing the estate. This appointment is important since it gives the personal representative or executor the legal authority to manage the estate. It also allows the executor to make decisions about the estate, and take actions on behalf of the estate. Without this appointment, it can be difficult or even impossible for the beneficiaries to access the deceased person’s assets. And for that matter, paying the debts and taxes of the estate.
Moreover, the probate court oversees the personal representative or executor’s actions to ensure that they are managing the estate in accordance with the law. As well as making certain the estate is administered in a fair and orderly manner; and the deceased person’s assets are distributed to their beneficiaries.
Pay Debts and Taxes of The Deceased
When a person dies, their estate is responsible for paying any debts or taxes owed. The probate court oversees this process of paying debts and taxes.
First, the executor pay the deceased person’s funeral expenses, any outstanding medical bills, and any debts secured by the estate’s assets (such as mortgages or car loans). Additionally, the executor must pay any taxes owed. These include estate taxes, income taxes, and any taxes on the sale of estate assets.
Once the debts and taxes have been paid, the executor can distribute the remaining assets to the beneficiaries according to the terms of the will or, if there is no will, in accordance with intestacy laws.
Probate Process Settles Claims of Creditors
As a part of probate, creditors have an opportunity to make claims against the deceased person’s estate. A creditor is a person or entity that is owed money by the deceased person. The probate court oversees the process of considering and resolving these claims to ensure that they are paid.
The probate court oversees the process of considering and resolving claims made by creditors, and provides a neutral forum for resolving any disputes that may arise. The court has the authority to hear evidence, make findings of fact, and issue orders to resolve such disputes.
Resolve Disputes Among Beneficiaries or Creditors
Probate is necessary to resolve disputes among beneficiaries or creditors. This can include disputes between beneficiaries over the distribution of the deceased person’s assets. Or claims by creditors who believe they are owed money by the deceased person’s estate.
In addition, probate provides some level of protection for the beneficiaries and creditors. The court may approve distributions of assets to the beneficiaries, as well as consider payment of any valid claims by creditors.
Ensure Assets Are Accounted For and Distributed
The probate process is necessary to account for all assets and the distribution of those assets to the deceased person’s will or state law. When a person dies, their assets are identified, valued, and distributed to beneficiaries or creditors.
This includes locating any bank accounts, stocks, real estate, personal property, or other assets owned by the deceased person. Once these are gathered, the court oversees distributions to beneficiaries and/or creditors.
Probate Process Transfers Assets to Beneficiaries
Probate is generally necessary when the deceased person held assets in their individual name only. In such cases, the assets can’t automatically be transferred to the beneficiaries upon the person’s death. Not all assets are subject to probate, however. Some assets, such as those held in trusts, joint ownership with right of survivorship, or with beneficiary designations; typically do not need to go through the probate process. These assets pass directly to the named beneficiaries outside of probate court.
In summary, the probate process provides the legal framework for a personal representative or executor to manage the estate’s administration. It also ensures the administration of the estate is fair, impartial, and efficient.Follow me on social media: