Understanding Probate Process is imperative to understand the entire estate planning process. Probate is when a person dies and has an estate plan with a will or trust. The will is prepared by a personal representative of the deceased individual or his/her agent and provides for the disposition of their property and debts upon their death. Probate can be of many types and is used in different scenarios such as, estate planning, to settle inheritance taxes, and for other legal matters. As it relates to property distribution during the course of probate, there are a few things that should be considered.
There are two main branches of probate, administrative and judicial, said MiamiProbateAttorneys.net. The court system will appoint an administrator to administer the estate. The administrator is responsible for collecting taxes, liquidating assets, paying outstanding debts, managing decedent’s beneficiaries etc. The administrator cannot sell, rent, or distribute any property without the written approval of the court. In certain circumstances, the court can temporarily stop distribution if they deem it necessary.
A will is an important part of estate planning and must be prepared correctly. If the will is not prepared correctly, there are a number of issues that can occur including that the will may be found to be invalid, estate tax issues, and even estate fraud. A qualified attorney will ensure the proper preparation of the will and complete distribution of inheritance property.
The estate tax is a major concern for many people. Taxes on the death estate are assessed at the time of death. Inheritance taxes are also levied based on the current fair market value of the property at the time of death. This can create some difficult financial decisions for family members if they are unaware of the final valuation at the time of passing. Property taxes are collected on a yearly basis from homeowners in general. These taxes are calculated based on the current market value of the property and can increase with inflation.
Probate consists of a series of steps. An executor is appointed to manage the estate and distribute the assets. A personal representative is appointed to handle all of the affairs on behalf of the deceased individual’s wishes. There are a number of outside administrators that can act in the event of a disability or incapacitation. These administrators are responsible for managing the assets and ensuring that distribution meets the wishes of the deceased individual.
Understanding probate process is important to protect your loved ones and secure the future of your family. It is also important to have a qualified attorney on hand to make sure that everything is proceeding as desired. This ensures that the process goes as smoothly as possible. With probate proceedings, it is important to get all proceedings organized and completed as quickly as possible.