The word "probate" sounds intimidating, but it's simply the legal process of administering a person's estate after they die. Here is what you need to know to get started.
What is Probate?
Probate is a court-supervised procedure that authenticates the Last Will and Testament (if there is one), appoints an executor or administrator, pays the deceased person's final debts and taxes, and finally distributes the remaining property to the rightful beneficiaries.
Does Everything Go Through Probate?
No. In fact, much of what a person owns may bypass probate entirely. "Non-probate assets" include:
- Assets held in a Living Trust
- Life insurance policies with a designated beneficiary
- Retirement accounts (IRA, 401k) with a designated beneficiary
- Bank accounts with "Payable on Death" (POD) designations
- Property owned as "Joint Tenants with Right of Survivorship"
How Long Does It Take?
Depending on your state and the complexity of the estate, probate can take anywhere from six months to over a year. Simple estates with no disputes move much faster than complex ones or those where family members contest the Will.