Probate & Estate Administration

When a loved one passes away, someone usually takes care of finishing the financial affairs of the deceased, which is commonly called 'administering' their estate or trust.  This involves tracking down what a loved one owned at the time of death, what he or she owed, paying the legitimate debts, selling the assets, accounting or reporting to the satisfaction of those who will receive the assets remaining. 

Some estates do these tasks using a court-managed process called probate or estate administration.  If your loved-one owned his or her assets through a well drafted and properly funded living trust, it is likely that the probate court will not be needed.  The successor trustee still must administer the distribution of the deceased's assets, but no probate court action is likely to be required.

The length of time needed to complete the probate of an estate depends on the size and complexity of the estate and the local rules and schedule of the probate court.  Similarly, the time needed to complete administration of a living trust depends on the size and complexity of the trust assets, debts, and the distribution plan. 

Every probate estate is unique, but most involve the following steps:

• Filing of a petition with the proper probate court.
• Notice to heirs under the Will or to statutory heirs (if no Will exists).
• Petition to appoint Executor (in the case of a Will) or Administrator for the estate.
• Inventory and appraisal of estate assets by Executor/Administrator.
• Payment of estate debt to rightful creditors.
• Sale of estate assets. 
• Payment of estate taxes, if applicable.
• Filing of final tax return for deceased.
• Filing of income tax return for the estate.
• Final distribution of assets to heirs.