Probate is Initiated
The court must be notified that probate needs to take place. The nominated Executor or Administrator of the estate should file a Petition for Probate, which can be done with the assistance of a probate attorney. The petition must include the decedent’s death certificate, plus their Last Will and Testament if available.
The petitioner must give notice to each party who was named in the deceased person’s Will. They must also give notice to each of the deceased’s legal heirs, regardless of whether they were named in the Will. These official notices notify all parties of the individual’s death, as well as the details of the probate proceedings.
Court Hearing on the Petition
The first probate hearing takes place after preparatory steps are completed. During this hearing, the court will examine the Will and verify its validity. Next, it will appoint the Executor. Typically, this is the Executor who was nominated in the decedent’s Will and who has served as the petitioner thus far. In the instance that there is no Will the court will appoint whomever they see fit, such as a family member or a court administrator.
Upon appointment, the Administrator will be provided Letters of Administration, Orders for Probate, Duties and Liabilities, Issue Bond (if required), & Letters of Testamentary.
Notice to Creditors
The petitioner is responsible for sending notifications to the decedent’s known creditors, as well as publishing a notice to creditors in a newspaper that circulates in their county of residence. This provides an opportunity for credits to file a claim against the decedent’s estate in the case of any outstanding debts.
Notice to Department of Health Services Inventory & Appraisement
Once appointed, the Executor will complete a series of administrative duties. The first step is taking an inventory of the deceased person’s estate. This includes any and all assets, property, and belongings that were not moved into a Trust. It does not include any financial assets that have a beneficiary designation. (These commonly include life insurance policies or retirement investment accounts that pass directly to the beneficiary who is named on the account.)
During this process, they should collect any funds from debtors and pay all outstanding debts. These two actions will impact the final value of the estate. Once all accounts are settled, the Executor will liquidate the estate assets so that they can be distributed to creditors and beneficiaries.
Pay Federal & State Taxes (if due)
The Executor also must file any applicable tax returns on behalf of the decedent and their estate. If there are any income taxes due, then the Executor must pay these out of the estate.
The Internal Revenue Service’s website offers a guide on how to file taxes on behalf of a deceased person. Executors typically must file several government forms to establish the fiduciary relationship so that they can take these actions. Another good IRS information page regarding decedent’s can be found here.
Court Approval of Final Distribution & Accounting
Before the Executor can distribute the remaining assets to the decedent’s beneficiaries, they must obtain approval from the court. They must file accounting records of the estate and a distribution plan for the court’s review. This plan explains how property and assets should be distributed to the beneficiaries of the estate. Once approved, the Executor can move on to the final step.
Distribution of the Estate’s Assets
Once the court approves the estate distribution plan, the Executor can then distribute the estate’s remaining assets. Per the plan, the beneficiaries of the estate will inherit certain assets and property. Once the necessary tasks are completed, the probate court will close the individual’s file.
The stages summarized above can vary, and at times may not seem so straightforward.
If an estate is complicated, it could take an Executor or Administrator longer to inventory assets and pay debts. Further, lawsuits and contests against the Will could create delays. There are also factors that are outside the control of the decedent’s family, such as the volume of petitions awaiting probate at any given time. These bumps in the road could add months or even years to the probate process.
The most prevalent reason is the size, population, and demographics of California. With the increased death rates from COVID-19 and the swelling elderly population, there are simply larger volumes of estates passing through probate at any given time (when compared to other states).
Another reason is that the court may be monopolized with large and complex estates. California is home to the wealthiest population in the U.S. It’s the state with the most billionaires in the country, indicating a large concentration of wealth. With an already impacted probate court system, adding large volumes of large and complex estates adds extra pressure.
Unfortunately, if you hire just any agent, you may sabotage your timeline as well. While the process of every probate case follows routine procedures, every case has it’s own unique circumstances and complications and if your Agent doesn’t have significant probate experience, they’re likely to make mistakes throughout the process – causing the already lengthy probate process to drag on even longer. However, an agent who’s been trained for and specializes in the probate process will be able to navigate you through potential issues and can fill you in on the pros and cons of every decision you make. Hiring a CPRES (an agent who’s received specialized training from the US Probate Services and educated to deal with the complexities of both probate home sales and court confirmation procedures) can save you a lot, not just in dollars, but also time, effort, and energy.
The more your agent knows about the process, the faster your probate home sale will go.
That’s why Eric L. Lamb, our Probate Specialist at Lamb Probate Realty Team, has gone above and beyond the CPRES training and maintains training and certification within the CAR (California Association of Realtors) too. The reality is the probate process can be extensive, depending on the circumstances, but we are committed to your case and work behind the scenes as much as possible to resolve any would-be issues.