At some point in your life you will likely need to understand what probate is and how the probate process operates. When you develop your own estate plan, a basic understanding of probate is essential in order to comprehend why you may want to avoid probate. In addition, if a loved one or family member dies, you may need to understand probate from the point of a beneficiary or heir, or because you were nominated as the executor of the estate in the decedent’s will.

Each state determines its own laws and procedures with regard to wills, trusts and probate which is why you should consult a Henry county estate planning attorney for specifics about Georgia law. However, there are similarities between the states. At its most basic, probate is the legal process that is often required by law when someone dies. The purpose of probate is to inventory and value estate assets, satisfy debts of the estate and transfer estate property to beneficiaries or heirs. Some states offer expedited probate procedures for small estates.

Formal probate typically requires court oversight throughout the entire process. Someone must be approved by the court to oversee the administration of the estate. This person is either the executor, in the case of a will, or a personal representative in the case of an intestate estate.

All the assets of the decedent are inventoried and valued by the executor/personal representative. Creditors must submit official claims against the estate which are then approved or denied by the executor/personal representative. The court, meanwhile, will oversee the process and decide any disputed claims or contested will issues.

Once the court is satisfied that all assets have been accounted for and all bills and taxes paid, the court will authorize the release of the remaining assets to the beneficiaries or heirs.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

When a decedent dies, the assets of the decedent’s estate are often held up in a lengthy, and costly, legal procedure known as “probate”. If you have suffered the loss of a loved one, you should take the time to inquire regarding alternative options to formal probate. While state laws and procedures differ somewhat, most states offer some type of informal probate which, under certain circumstances, can drastically reduce the time and cost of the probate process.

Although the names may vary, most states refer to the less formal probate options as “small estate administration” or “small estate affidavit”. The degree to which these options lessen the cost and time factor involved in formal probate will also vary; however, in all cases they are worth investigating if you think your loved one’s estate may qualify.

Qualifying for small estate administration is often based on the value of the estate, type of assets owned by the estate and whether or not the decedent left a valid will. Almost universally, when a decedent dies without leaving a valid will, or intestate, small estate administration is not an option. The reason for this is that a court must make a legal determination regarding who the heirs to the estate are, which requires a more formal administration.

If the estate is valued under a certain dollar amount and the assets are not complex, small estate administration may be available. Small estate administration procedures will also vary, but frequently allow a personal representative to attest to the value of the estate without the need for formal valuations and appraisals. If all the beneficiaries agree to the listed assets and their value, a court will approve the distribution in considerably less time than a formal probate administration. Some states also allow an even simpler small estate affidavit which allows an asset, such as a vehicle, to be transferred by virtue of completing and filing one simple affidavit with the court.

If you believe that your loved one’s estate may qualify for a small estate administration alternative to formal probate, consult with your estate planning attorney as soon as possible.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

When a last will and testament is your primary vehicle of asset transfer, your estate is going to have to pass through probate. Probate is the legal process of estate administration, supervised by the probate court. Probate is hands-on manner by the executor. A will is just a document that is used to elucidate your final wishes. The executor has a big job and uses a lot of legwork that needs to be done to make these wishes a reality. The executor has a large responsibility.

It is important to consider this responsibility when you are selecting an executor. The job requires a good bit of business savvy to take care of all the things that need to get done. But, even if your executor is an experienced business person, a probate attorney is going to be necessary if you want things handled in an optimal manner. Probate is a legal process, and probate attorneys understand it through and through. There is no reason to expect your executor to have any idea how the process works. The probate attorney guides the executor and in the process simplifies tasks that can be overwhelming to someone who is uninitiated.

A responsibility of the executor is to settle final debts, liquidate assets and make sure that all tax responsibilities have been satisfied. Probate attorneys understand all of this and can make valuable recommendations that will save the estate a lot of time and money in most cases.

In addition, the probate court provides a forum for those who might be interested in challenging the will. The probate attorney advocates the interests of the deceased and he or she will do whatever is necessary to make sure that these wishes are carried out to the letter.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

When you start to search the web looking into Atlanta estate planning you invariably see people floating probate avoidance strategies. They skewer the process and try to make it seem like nothing but an unnecessary hassle, but when you take a closer look the treatment is always extraordinarily superficial.

They claim that probate should be sidestepped because it is “costly and time consuming.” This is an empty spin when you really examine the matter more closely because everything of value comes with some cost, and when it comes to important, high stakes financial matters due diligence takes some time.

Probate is the legal process that an estate must pass through that takes place in the probate or surrogate court. The court supervises the administration of the estate, which is conducted by the executor or a personal representative that is named in the will. If no executor has been named, the court will appoint a personal representative.

One of the fundamental responsibilities of the probate court is to determine the validity of the will. If its validity is in question, if more than one will is presented, or if the will is contested the arguments would be heard in probate court.

During the probate process all valid claims against the estate must be satisfied and this includes final taxes, so an accountant is often necessary. Once the debts are paid, the executor will have to inventory the assets and prepare them for distribution in accordance with the wishes of the deceased as stated in the will. This may include the engagement of an appraiser or appraisers and/or an estate liquidation company.

So the executor is going to be handling many transactions on behalf of the estate. Because it is all being done under the supervision of the probate court there is total transparency, and this is perhaps the most important function of the probate process.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

When you get serious about estate planning in the Internet age you are probably going to do your own research before making an appointment with your local Atlanta estate planning attorney, and this is to be expected. It is actually very interesting, especially on the financial end, to learn about the various estate planning vehicles that are typically used to protect assets and gain tax efficiency. This is somewhat familiar territory for most people who have been able to accumulate enough wealth to get to the point where they really have the need to consider these things.

But when it comes to estate planning the one thing that you really can’t learn on your own is the way that the probate court functions in your county of residence. Your estate is going to have to pass through probate, where the court will supervise its administration. Your estate plan should be prepared with the nuances of probate in mind, and every jurisdiction is different. Atlanta probate lawyers know how the courts here operate through personal experience.

It actually makes it easier for us to discuss your estate plan with you if you do some research beforehand and we encourage you to arm yourself with as much knowledge as possible. Your vision coupled with our experience with estate planning and probate is always going to be a winning combination.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

Will your estate need probate after you pass away? Some estates do and some don’t. Here are reasons an estate may be settled via the court process of probate:

Intestacy

An estate without a Last Will and Testament must be settled according to intestacy laws. These are state laws that determine how estates without a proper Will will be settled and which heirs will inherit. Such an estate requires probate. In this case, probate will be used to choose an estate representative. That representative will work with an attorney throughout probate to determine rightful heirs, pay debts and taxes and distribute assets tot eh heirs-at-law.

Property Titling

Probate also occurs when property must be moved out of a decedent’s name and into the name of an heir. This occurs with solely owned property as well as property owned with tenants in common. When a tenant in common owner passes away, the decedent’s share will not pass to the other tenant in common, but rather to the designated heir through the probate process.

Non-Updated Plans

If an estate plan is not up to date it is susceptible complications during probate. This is true for both will-based estates and trust-based estates. When a Will-based estate is not updated, situations such as pre-deceased beneficiaries and property without a listed heir will be dealt with during probate.

If an estate has a Revocable Living Trust and any property is left out of the Trust, a Pour Over Will may be used to transfer the property to the Trust. For a Trust-based estate, probate is only necessary to use the Pour Over Will to move property from the decedent’s name to that of the Revocable Living Trust.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

Probate is the process by which the affairs of a decedent are settled via a court of law. This process takes place over many months and sometimes years. If there are probate assets, such as assets titled solely in the decedent’s name, probate must occur in order to settle final debts and pass property to beneficiaries.

Identify Executor

The first step of probate is identifying the executor. This person will be named either by the Last Will and Testament or by a judge if no valid Will exists. The purpose of the executor, also called a personal representative, is to act as a spokesperson for you and your family during the probate process. Your executor may work with an attorney to ensure your estate is quickly settled.

Locate Assets and Debts

After receiving authorization from the probate court, the executor must locate all of your assets. Real estate and personal property must be inventoried as of date of death. For financial accounts, date of death values will be determined by contacting the financial institution.

Debts must also be located. The executor must post a notice in the local newspaper advising any unknown creditors of the decedent’s passing.

Pay Bills and Taxes

After assets and debts have been assessed, the executor must use estate funds to pay bills and taxes. If the estate is insolvent, which means there are more debts than the estate is worth, the executor must work with his or her attorney to legally determine which debts must be paid first and which debts will go unpaid. If your estate cannot cover all of your debts, your loved ones do not have to pay them out of their own pocket.

Your executor will also file tax returns and pay any taxes that are due including your final income tax return, estate taxes and inheritance taxes.

Handle Inheritances

After all bills and taxes have been paid, the final step is distributing inheritances to beneficiaries. All properties titled solely in the name of the decedent must be transferred into the name of the chosen heir.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.

If you do not make a Will before you die, your assets are placed in probate. However, there are some assets that are not placed in probate regardless of whether or not you have a will. These assets are called non-probate assets.

What are Non-Probate Assets?

Some types of assets are part of your non-probate estate since they are contractual in nature. Non-probate assets can include assets:

• You own jointly with other peoples, such as your spouse, as joint tenants with right of survivorship. When you die, your portion of the property is automatically transferred equally to other owners of the property.
• Owned by your Revocable Living Trust.
• Owned as a life estate. After your demise, the life estate is passed to the remainder beneficiary.
• Owned by you and transferred to your designated beneficiary after your death. These assets include Payable on Death (POD) accounts, Transfer on Death (TOD) accounts, Totten Trusts and In Trust For (ITF) accounts. Life insurance policies, retirement accounts, health savings accounts (HSAs) and medical savings accounts (MSAs) are also included in these assets.

Although your non-probate assets can avoid probate, their value will be included in the value of your gross estate when your estate tax liability, if any, is determined.

Pyke & Associates, P.C. is a member of the American Academy of Estate Planning Attorneys.