PROBATE

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Upon a death, certain procedures are required to ensure that all legal requirements are met and that distributions are made to beneficiaries or heirs

In Finance Probate and Procedure Probate we give you a glimpse of how this works.

FINANCE PROBATE

If assets total less than $100,000, no probate is necessary, and the procedure is simple.

If assets are not great in value and the deceased person was married, a procedure called "CPSA" (Community Property Setaside) is an inexpensive alternative to the usual probate procedure and to a living trust trust administration.

If a deceased's assets which do not pass in some automatic fashion are of a value greater than $100,000, a probate procedure is probably necessary. At the end of the procedure, the following percentages of the assets inventoried, appraised, and earned during the probate (California) are paid to the executor and to the attorney assisting the executor (the same amount each):

4% for the first $100,000
3% for that next $100,000
Then 2% to $1,000,000
Then 1%

To commence a probate, approximately $1,000 in advance costs needs to be paid. These costs are reimbursed once the executor is confirmed by the court and acquires access to the deceased's cash accounts.

PROBATE PROCEDURE

At each and every death the following tasks must be accomplished:

Inventory
List all assets that must be dealt in the probate.

Appraise
The executor is allowed to appraise certain assets, but most of the valuable assets are appraised by a court-appointed California Probate Referee.

Taxes
Income and estate taxes must be completed and paid. The estate-tax return includes all interest the deceased had in any asset, not just in probate assets.

Creditors
Through a court procedure, creditor claims are either paid or eliminated.

Distribution
The assets are given to the beneficiaries named in the last will or, if there is no last will, to the heirs as defined by California statutes.

Accounting
At distribution, an accounting of all assets managed is normally given to the beneficiaries.

Also, in a probate procedure, extensive court documents and reports are required.