What is Probate?
Probate is the legal process by which assets that are owned in a person’s individual name at their death are transferred to their heirs or beneficiaries, typically in the manner prescribed by the decedent’s will.
A probate is necessary any time a person passes away owning property in their individual name that does not have a mechanism already in place for transfer (such as Rights of Survivorship, Pay on Death (POD) or Transfer on Death (TOD) designations).
A will does not automatically transfer legal title of assets to beneficiaries; it merely directs a court as to who should receive the decedent’s property. A court order makes the transfer of a decedent’s property to a beneficiary legally binding. If a person dies with no property held in their name (e.g., has a living trust which owns all their property), no probate proceeding is necessary.
Probate involves several steps:
• Appointing an executor/administrator to handle the probate
• Gathering property owned by the person who died
• Notifying creditors and beneficiaries or heirs
• Handling debts and taxes
• Wrapping up business affairs
• Transferring legal title of the property owned by the decedent to heirs or beneficiaries
• Filing state, federal, or any other necessary court documents
