What to Do When a Loved One Passes Away

What is probate?

Probate is the formal legal process that distributes assets (such as property and money) after a person's death. Probate is not automatic upon a person's death and must be initiated by filing forms with the probate court. Most people hire a lawyer to assist.

What are the costs?

Generally, there are five expenses associated with probate:

1. Filing fees set by the court for initial filing of documents
2. Court fees with inventory fee equal to 1% of the value of the probate estate
3. Publication of Notice to Creditors
4. Attorney fees
5. Executor compensation for the person managing the estate

What is a probate estate?

A Probate Estate is a term used to describe all assets of a deceased individual that are subject to the probate process. This can include houses/real estate, personal property, cars, jewelry, and bank accounts.

What is not in a probate estate?

A Probate Estate does not include property that is owned jointly with rights of survivorship, or financial accounts and insurance policies that have a named beneficiary, or any assets that are funded into a trust.

How long does probate take?

The length of probate can vary depending on the complexity of the case. Even an uncontested estate normally takes about six months. If contested, it can take years.

Probate vs. Non-Probate Assets

Non-Probate Assets

These assets pass directly to a named recipient without going through the court process:

Assets with Named Beneficiaries

• Retirement accounts (401(k), IRA)
• Annuities
• Transfer on Death (TOD) designations
• Life Insurance

Assets Held in Trust

• Pass directly to the trust beneficiary

Jointly Held Assets

• Joint Tenancy with Right of Survivorship (JTWROS) — passes to the joint owner
• Tenancy by the Entirety — passes to the joint owner

Probate Assets

These assets must go through the court probate process:

Individually Owned Assets with No Beneficiary

• Car
• House
• Bank account (with no named beneficiary)
• Personal belongings

Assets Titled as Tenants in Common

• Each owner's share passes to their will beneficiary, or through intestate succession if no will exists

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