What do you know about Probate?

When a person dies, with or without a will, their goods and property are distributed to their heirs and creditors. This process of distribution of goods and property is called probate, and there is a variation of legal steps from jurisdiction to jurisdiction.

probate

Executor of a Will

If the person who has died has a will, then it will name an executor, a person who is designated to see that the terms of the will are carried out throughout the probate process. The executor  could be a child of the deceased or he or she might be other relative, or may be a completely unrelated person. The lawyer by whom the will has been drawn up, if any, can be a valuable resource in guiding the executor through all the legal necessities of probate. The estate will directly pay his or her fee.

Phases of Probate

There are several phases of probate. First an accounting of all the property and assets of the deceased should must be made by the executor. Then the creditors are informed about the death of the deceased and they are notified that they have a specific time frame which is the term of probate in that time frame they must present their accounting to the estate.

Out of assets the estate settles these debts and then the rest of the assets are distributed according to the will of the deceased. If the deceased person has no will then the state law will determine how the assets are distributed according to degree of relationship with the deceased.

probate2

Duration of Probate

Usually probate is held open for a specific period of time, such as six months. During this time, creditors must have to bill the estate, and not the heirs, to recover any monies owed. Some less than scrupulous creditors will try to collect their money directly from the heirs. At once they should be referred to the lawyer for the estate or the estate executor. If the debts outweigh the assets of the estate, then it will be determined by the courts that how to distribute the funds to the creditors. On the part of the heirs there is no legal obligation to pay debts that the estate cannot otherwise cover.

Some creditors, such as the major credit card companies, are so involved in bureaucracy that they are unable to get their accounting before the probate close. If this will happen, then they are out of luck; and they cannot require the heirs to pay the debt. You cannot be held accountable for your parent’s debts upon their death, unless you co-signed a loan for a parent. We have seen such cases where the lenders went after the children of creditors to try to recover their losses, even after the close of the estate’s probate. Any such kinds of attempts are strictly illegal and they should be reported to your state attorney.

You might also like

Reverse Mortgage A reverse mortgage also known as a lifetime mortgage that is specially applicable to senior citizens...
Advantages of Reverse Mortgage There comes a point in life where you need to save enough for your post retirement period. This...
Different Types of Ownership Titles There are many types of ownership of real property. Each type has its some merits and demerits. And obviously...
How Home Equity Can Help Fund Retirement Home equity is the market value of the homeowner's inherited interest in their real property. It is a...
A Safe Haven for Real Estate Investors-Canada Canada is a new frontier that real estate investors are exploring. The laws are quite liberal, in the...
Debt Consolidation Companies

People who liked this Post also read


is an experienced IT Consultant turned Blogger, Interested in Technology, Personal Finance, Humans and Life...You and discover more about him by following RMak on twitter.

Leave a Reply

© 2011 Loan Mortgage Credit!. All rights reserved.