late Middle English: from Latin probatum something proved, neuter past participle of probare to test, prove.

Transcription

1 1 DEFINITION: Probate Pronunciation: [ˈprōˌbāt] ORIGIN late Middle English: from Latin probatum something proved, neuter past participle of probare to test, prove. * Oxford Dictionaries * What is probate? Probate is the legal process that decides how the estate of a deceased individual will be distributed to their heirs/beneficiaries. History of Probates The historical background of United States probate laws can link its origins to English common law. During the time of the English colonies, probates fell under English common law. Probate matters during the colonial period in the 13 original colonies were handled under English law. English common law specified married women were only allowed to create a will of real property with her husband's consent or with an ante-nuptial agreement, contract before marriage. Purpose of a Probate Probate is necessary in many instances and the process goes through the court system. The purpose of probate is to place the deceased person s finances in order after they have passed including paying debts and transferring assets out of their name and into the name of the heirs/ beneficiaries. Process

2 2 Circuit court judges supervise probate cases and decide if there was a will, testate at the time of death and if it was legitimate. The judge rules whether the executor/personal representative meets the qualifications and if so, issues Letters of Administration. Letter so Administration give authority to the personal representative to manage and act on behalf of the deceased person s probate estate. If there wasn t a will, intestate; the judge will deliberate and decide based on evidence presented the heirs/beneficiaries of the estate. During the probate process if issues or disagreements should occur, hearings will be held to determine the disputes. The judge will rule and the decision will be written as a legal order. Major Players of Probate! The Executor/Personal Representative(PR)! The Petitioning Attorney! The Beneficiaries! Title Company! Realtor Probates for Each State Depending on the state, each one has different laws pertaining to probates. Some are minor and others more distinct. There are multiple names different states use that handle the probate process. (Circuit Court, Judicial Court, Orphans Court, Surrogate Court, Chancery Court, District Court, and Superior Court). This is the reason it is imperative that you familiarize yourself with your state laws and the ones you plan to do business in. You can find much of this information online for your particular state or county. Uniform Probate Code ( UPC ):

3 3 A body of law, substantive and procedural, which sought to clarify and modernize the rules in the wills area and bring greater uniformity among the states. The original UPC was promulgated in 1969; the revised UPC was promulgated in 1990 and amended in The primary purposes of the act were to streamline the probate process and to standardize and modernize the various state laws The Length of Probate The length of a probate is determined by multiple variables such as the size of Estate, your state/county laws, disputes, and court filing procedures. A simple probate can be completed in as little as ninety days and a complex one can go on for years. The good news is you really don t care how long the actual probate process takes to complete! The Court House Cash System focuses on how to buy probates prior to the completion of the entire probate. That s right, you no longer have to wait until the end of a probate to go ahead and buy the property. Definitions of Probate Administrator: an individual appointed by the courts to manage a deceased person s estate that did not have a will. Agent/Attorney in fact: An individual who has power of attorney and performs on behalf of the principal. The power of attorney is terminated upon the death of the principal. B e n e f i c i a r y ( s ) : Individual( s ) that are not directly related to the deceased person, but are entitled to some benefit of the estate. (Will) Bequeath: Giving personal property by means of a will from a deceased person s estate to the decedent s heirs/beneficiaries. Decedent: Deceased person Estate: All the property the decedent owned. (Gross estate) the total value

4 4 of the assets as defined for estate tax purposes. Estate administration: Organizing and determining what occurs to the deceased person's assets. Estate tax: Imposed tax on deceased person s transferable assets to the heirs and beneficiaries. Executor/ Personal Representative (PR): An individual appointed by a will that has been validated by the courts is responsible for managing the deceased persons probate estate. Heirs: Direct lineage of the deceased person and refers to blood relatives such as parents, siblings, and children, spouse, cousins, aunts and uncles. Holographic will: A will handwritten and signed by the deceased person. Intestate: A person who dies without a legal will. Letters of Administration Legal documents which authorize the administration of a deceased person s estate by the administrator. Life estate deed: An irrevocable deed transferring the remainder of real estate upon owner's death. A probate avoider. Living Trust: A legal document that transfers assets upon death to avoid probate. Probate the legal process and distribution of a deceased person s estate. Probate Court: a court that has jurisdiction and deals with validating wills and the administration of estates of deceased individuals. R e d a c t i o n : t he process of editing court document store move sensitive information such as SS#, date of birth, and account numbers. Testamentary: testament or intent of an individual who makes a will. Testator/Testatrix: an individual who constructs and signs a will. Testator is male and testatrix is female.

5 5 Will: A legal document that explains the distribution of an individual s estate after death.