Probate or estate administration refers to the process of managing and distributing the estate of a deceased person through a court process. The court managed process does not apply where the deceased individual had a perfect draft and an effective fund living trust. In such a situation, distribution of the estate or the assets is done by the successor entrusted with the action. Timer taken in the probate is dependent on different factors, but the common factors are rules and regulations of the locality, how busy the probate court is, and size and complexity of the property
The probate estate is different from one place to another. Majority of the probate cases follow the following steps: Making a petition file with the right probate court. Informing the next of kin or the legal successors. Petition to appoint a liquidator to execute or a take over the estate. Valuation of the assets in the estate by the executor. Making payments to the creditors not yet paid. Sale of the estate assets. Where there is the tax to be paid payments are made. Distribution of the assets to the rightful successors
Will Contest Scenario
This is a situation in which there is a person who is against the will verdict or is against the will. This is not a common case in probate courts but in case it occurs it can lead to a very high litigation cost during the probate proceeding.
In a will objection situation, one is required to be in a capacity to make an objection. This case occurs where the children who are the beneficiaries feel that the shares were not issued in the correct proportions or where the stipulated way of distribution is changed. An objection can also occur in a case in which a member involved is not comfortable with the person appointed as the executor.
Which property is attributable to probate administration?
Basically, the transfer of the titles of the assets from the deceased names to the names of the person who will be now the legal owners is what is referred to as the probate process. Not all assets go through the probate administration. Property in which ownership was jointly and is passed to the co-owners by the court, retirement accounts as they have specific beneficiaries, property owned by a living trust, life assurance policies, and bank accounts that are entrusted with or paid on death are all assets that don’t go through the process and are mainly referred as non-probate assets.
Duration and cost of a probate
The cost and time incurred depend on different factors such as value, the existence of a will, debts incurred can have disagreement prolonging the duration, locality of the property and the complexity of the estate. Most of the cost incurred is as a result of expenses from the executor fee, probate attorney tucson az fees and litigation cost. The expenses can lead to the rise of the estate value from 2% to 7% while the time taken is from 9 months to 18 months where no litigation takes place.
The person entrusted with the execution of the assets are paid for the expenses they paid for during the process of management and distribution of the estate to the beneficiaries. He is also entitled to a compulsory fee for the service that varies from one to another depending on the size of the probate estate and where it is located. The executor is expected by the law to take the fiduciary duty with a high degree of integrity and also take due care during the management of the estate and in case of negligence then he or she will be held liable. It is advisable for the executor to seek advice from a lawyer and accountant during the process for clarity.