Probate

Question 1

Testate:

Answer 1

You have a will. (can be called testator).

Question 2

Decedent:

Answer 2

The person that died.

Question 3

Bequiffed:

Answer 3

(Give) personal property to a legatee.

Question 4

How is real estate devised?

Answer 4

Real estate is devised (gifted) to devisee.

Question 5

Intestate:

Answer 5

No will.

Question 6

How is personal property given to someone without a will?

Answer 6

Distributed to next of kin (intestacy).

Question 7

How is real estate given with no will?

Answer 7

Descends to heirs (also intestacy).

Question 8

Probate:

Answer 8

Court supervised process of determining the validity of the will and otherwise monitoring the distribution of the decedent’s stuff.

Question 9

What can get distributed through probate?

Answer 9

Probate Assets?

Question 10

What can not pass through probate?

Answer 10

1) Most Trusts.
2) Joint Tenancy (Tenancy by the entirety).
3) Payable on Death bank accounts.
4) Life Insurance.

Question 11

Issues with PROBATE:

Answer 11

-Time consuming. (many months)
-Expensive. (court fees, attorney fees, executor fees, appraisers)
-Not private. (Wills are public documents).
-Not mandatory. (Most states have some form of small claim probate).

Question 12

4 reasons why someone would go through probate:

Answer 12

1) Probate cuts down on the statute of limitations for creditors from like 5 years to 6 months (at least in Arkansas).
2) Banks will prefer an order from a Probate court, a letter of testamentary from the administrator of the estate.
3) Dispute Resolution
4) Great way to ensure decedent’s wishes are carried out.

Question 13

What is the default method for distributing assets in the United States?

Answer 13

Probate

Question 14

How probate works (5 steps):

Answer 14

1) Is there a will? (Check with families and attorneys).

2) File a petition for probate. (Download from the internet, attach death certificate, and will if there is one).

3) Letters of Testamentary sent out. (It shows the Personal Representative has full authority to act on behalf of the estate).

4) Administer the estate.

5) File a settlement with the district court.

Question 15

How probate works (Step 2 More information):

Answer 15

2) File a petition for probate. (Download from the internet), attach death certificate, and will if there is one.
- The court will set a date to appoint a Personal Representative.
* Personal Representative has the authority to settle the estate.
*No will = administrator.
*With will and appointed = executor (court can choose not to respect that).

Question 16

How probate works (Step 4 More Info):

Answer 16

4) Administer the estate.
 Take inventory of dead person’s stuff.
 Close the bank account.
 Pay taxes.
 Pay debts.
 Make decisions about the assets.
 Give potential heirs notice, also people who are named on the will.
 At the end of probate there needs to be a dollar-for-dollar report of the estate.

Question 17

How probate works (Step 5 more Info):

Answer 17

5) File a settlement with the district court.
 They review if you put notice this person died, if anyone is upset, and at the end they will discharge the PR and the stuff gets distributed.

Question 18

Small estate probate:

Answer 18

-There is little to no court supervision.
-(Less than $100k, 45 day waiting period, can’t already be a Personal Rep).
-File an affidavit about the property and being debt free, and it acts sort of like a letter of testamentary.

Question 19

What does an executor/administrator do?

Answer 19

1) Collection, inventory, and appraisal of assets (can be waived if everyone signs off).
2) Giving notice of death (in a newspaper) and paying bills (real debts, reject crap debts) taxes, estate expenses, and creditors of decedent.
3) Formal transfer of estate property according to the will OR by the state laws of intestate succession (if no will is present).

Question 20

Are personal representative of probate paid?

Answer 20

• May be waived.
• 10% of first $1000
• 5% of the next $4000
• 3% of the balance of personal property.

Question 21

Probate comes from the Latin word __________.

Answer 21

Probare (to prove)

Question 22

Why would someone go through probate: Dispute Resolution: 4 Reasons

Answer 22

1) Probate helps clear title on real estate.
2) Probate can also dismiss stupid debts, resolving issues with the estate.
3) Probate court can prove paternity as well.
4) Probate can monitor sketchy relatives.