When you lose a loved one, you are going to need to handle their estate. Here are some different things that you should know to get through the process.
What Happens to Their Property and Debts?
If someone has made proper legal arrangements before their death, the property and debts will automatically be transferred to their beneficiaries. However, when the person has not taken these steps, the probate system will begin. The court will appoint a personal representative responsible for collecting the assets, paying off debts, and distributing the remainder to the heirs.
What Are a Decedent and Their Estate?
Decedent refers to the person that has died. Estate refers to this person's money and other assets they held at the time of their death. These can be of any size and can include land or not.
What's a Will?
A will is a document that designates who will receive your assets after you pass. Today, they commonly include typed documents signed by your lawyer, although handwritten wills can also be accepted in some cases. A will is only considered valid if it meets the necessary legal requirements. It will only go into effect once a court has probated it.
What Is Probate?
Probate refers to two processes. The first is the process of estate administration. The second is where the court confirms that the will they have is the most recent one and that the document is legally valid.
What's Estate Administration?
This is the process of handling someone's assets after they die. Large estates have to undergo the full administration process. Smaller ones are often handled through less intensive processes. Unless alternatives have been established before death, the court supervises the estate administration. During the full administration process, the court clerk appoints a personal representative responsible for handling the various steps, such as taking inventory of assets, publicly notifying creditors, paying debts, and distributing the inheritance to the beneficiaries.
What Type of Property Is Included in This Process?
This process labels vehicles, stocks, bank accounts, furniture, bonds, and jewelry as property. These are known as probate assets. Not included in the probate process are retirement accounts, life insurance policies, joint bank accounts, land, annuities, and houses.
What Is Intestacy?
Intestacy is the law that determines who receives the property when there is no valid will. Since most people leave their belongings to their family, this law follows this trend. When you die without a will, your belongings are divided between your spouse and children. If you have children but no spouse, your property will be divided between your children, grandchildren, and great-grandchildren. If these relatives are no longer living, your property will go to either your parents, siblings, nieces and nephews, grandparents, or aunts and uncles.
What's a Trust?
This allows one person to hold the title to property or other assets for another person. The terms of these are defined through trust instruments. These can be established for many purposes. According to the experts at Inheritance Advanced, they are most commonly used when the heir is a child or adult with disabilities. Most of them will not be filed with the court. However, testamentary trusts will be because they are written into wills.
Who Are Executors, Personal Representatives, Administrators, and Trustees?
All of these positions are fiduciaries. That means they have the authority to manage your property after you die. Executors are named in wills. Administrators are appointed through the court system if someone dies and doesn't name an executor in their will. Both of these are considered personal representatives. Finally, trustees are the person responsible for managing a trust.
After losing a loved one, you are going to need to start handling their estate. Learning a little more about the process can make it less stressful for you.
