The death of someone you love is never easy. There is a grieving process that you will need to go through. Soon, however, you will need to deal with the details of the person’s estate. Some estates are large and complex, while others are small and less complicated. Regardless of the assets a person has, after they pass away, you will need to follow a legal process to handle their remaining debts and distribute their assets according to their wishes.
What is Probate?
Probate is a legal process that administers the estate of a decedent. Probate is overseen by the probate court. Probate proves a will and ensures that the decedent’s debts and assets are taken care of while also maintaining the estate until it is closed. The process can take months or even years, depending on the complexities of the estate. Probate allows the legal distribution of assets to the rightful beneficiaries. Probate requires a number of steps from start to completion.
When is Probate Required?
Probate is required in Washington when the personal assets of the decedent have a net value of more than $100,000. In addition, you must go through probate when there is real property that cannot be distributed through an affidavit. In some instances, an administrative affidavit may be used to transfer title of property or to remove the decedent’s name from a title. However, in many instances, probate is still necessary. It is best to consult with a probate attorney to determine whether probate is required in your situation.
What Does the Personal Representative Do?
A personal representative is appointed by a person and generally listed in the will. The personal representative is also called the executor or administrator. If you are named as executor it is helpful to seek guidance from a probate attorney. As executor, you will be in charge of handling all of the financial matters on behalf of the deceased person. This includes opening probate, notification of parties, gathering documentation, preparing inventory, and managing assets of the decedent during the process. Once probate is complete, the representative distributes assets to the appropriate beneficiaries.
What Happens if There is No Will?
When someone dies without a will, they die intestate. This means that the process of distributing assets, etc., is based on the state's intestate laws. Even if there is no last will and testament, the decedent’s estate will need to go through probate. The probate judge will determine who is to serve as the estate administrator. According to Washington law, the surviving spouse is typically named as the administrator. If there is no spouse, the judge may appoint an adult child as administrator. The court will provide a letter of administration naming him or her as the legal administrator of the estate. This person is allowed to act on behalf of the estate.
Open Probate
The first thing to do as the personal representative is to open probate. Gather all the documents and information available to you, including the signed will, and submit a petition to probate court. The probate judge will review the details and determine validity. The administrative representative must sign an oath stating that you are prepared to take on the responsibilities that are required. The judge will issue an order that opens probate and assigns the administrative representative. The representative will receive a letter of testamentary that allows you to legally act on behalf of the estate.
Notify Interested Parties
The representative must identify and notify all interested parties of his or her appointment as administrative representative. An interested party is anyone who has a financial or legal interest in the case. This generally includes family members, creditors, beneficiaries, and heirs. Notification allows the parties to take appropriate action to protect their interests in the estate. The representative must also notify the Washington Department of Social and Health Services and the Social Security Administration (SSA) if applicable.
Gather Documentation
The representative will need to gather information and documentation about the estate. The representative needs to become familiar with everything about the estate, including debts and assets. Secure the person’s will as well as insurance policies that are in place. The representative will need to know bank accounts, stocks and bonds, mortgage documents, deeds, and all other financial documents that are part of the estate. If any pension plans or IRAs are in place, those must also be identified.
Create an Inventory
The administrative representative must prepare an inventory of all the assets of the estate. The inventory must be comprehensive and must include the value of each asset at the time of the decedent’s death. The representative may need to hire an appraiser for some of the assets. For example, a jeweler may be necessary to evaluate and value pieces of jewelry in the estate. If a formal appraisal is necessary, the appraiser's cost may be paid by the estate. Your attorney will help you work through the many intricacies of the estate inventory. It is essential to ensure the completeness and correctness of the inventory in order to complete probate.
Handle Debts and Notify Creditors
There are some debts that the administrator must pay. The administrator should gather bills and make an assessment of debts that must be paid immediately. Utility payments typically need to be paid rather quickly. There are other debts that the administrator has to identify, such as a mortgage, car loan, or personal loan. The representative must send a notification letter to all the creditors to inform them of the decedent’s death. Creditors must file a claim against the estate within two years. The administrator may elect to reduce the claim period by publishing a notice in the newspaper. Your attorney will provide guidance depending on the specific requirements of the estate.
Maintain Records
The personal representative has the legal responsibility to protect the assets of the estate. Therefore, they should maintain excellent records about how they handled the assets during probate. In some cases, the representative should open a bank account for the estate. That way, all the transactions can be easily recorded. Since probate usually takes some months, the representative will need to pay bills, file taxes, and supervise all aspects of the estate during this time.
Distribute Assets and Close Probate
Once the inventory is complete and all debts of the estate are paid, the personal representative distributes the assets to the designated beneficiaries. This may only be done after the period has expired for all claims to be made against the estate. Each beneficiary must sign for the receipt of their distribution. The personal representative can then close the probate. Probate will be closed 30 days after the administrator provides a signed declaration to the court. At that time, the process is complete, and the estate is closed.
Probate can be complex, and it can be helpful to seek guidance from a knowledgeable probate attorney. Contact us at View Ridge Family Law & Estate Planning at (206) 966-4020 for a case consultation.
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