How Much Does An Estate Have To Be Worth To Go To Probate?
A lot of things happen once you lose a loved one. Besides the grieving process and making burial arrangements, most people also need to go through the probate process.
While this is probably the last thing you want to do soon after your loss, you must get it done and settle the estate of the departed one.
Don't worry if this is entirely new to you. Here is all you need to know, including the worth of estates that must go through probate.
Schedule your free consultation today, and let us offer the help you need on probate matters.
Sonoma County Probate & Estate Attorney Andrew Kern
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First, let’s Define Probate.
Probate is a legal process in which the estate of a departed one is distributed to their heirs and beneficiaries. This process also includes the settlement of allowed debts and proving the validity of the deceased person's will if one exists.
Probate Law governs the probate process, and this can be a lengthy, draining, and complex process regardless of the size of the estate.
Sonoma County is an absolute necessity when you have to go through the probate process.
If you are an heir or a beneficiary, you must provide a will to transfer the assets left to you. In the absence of a will, probate is mandatory to ensure equity. Both options require the expertise of an estate planning attorney in Sonoma County.
The probate process takes anywhere from 9 months to two years, and any probate attorney in Petaluma, CA, will likely agree that each case they have handled is different and unique to its own set of circumstances. Typically, the probate process is shorter when a valid will is present.
Similarly, the process will take longer if unexpected issues arise during the process. The same is true when a loved one leaves substantial assets, real estate, or some unusual assets.
Why Is Probate Required?
Probate serves the following purposes:
To ensure the deceased will is enforced as per their wishes
To make sure the deceased debts are settled
In the absence of a will, probate law ensures an estate is distributed according to California intestate succession law
Validating wills
Bringing some order and structure to succession
Protecting beneficiaries by ensuring they get their rightful share of the deceased estate
Probate offers a formal channel for beneficiaries and heirs to resolve succession disputes and conflicts.
How Much Does An Estate Have To Be Worth To Go To Probate?
In California, any estate valued at a minimum of $184,500 and above must go through probate.
The state has special rules for smaller estates. Estates valued below $184,500 can skip the probate process.
For example, if the deceased has assets worth below $166,250, they get the much faster and simpler Affidavit process. This is known as the Small Estate Affidavit and has a 40-day waiting period. This Affidavit can also be used to collect salary and other compensation owed to the deceased. For amounts below $166,250, there is also a summary probate process.
These amounts are the sum of the total assets owned by the deceased. These can include:
Personal property
Real estate
Stocks and bonds
Cash held in bank accounts
Intellectual property
Life insurance proceeds when there is no named beneficiary on the policy
Cars
Jewelry and art
Assets not subject to probate include:
Properties owned under the right to survivorship (joint assets whose ownership automatically reverts to the surviving member once the other party dies)
Assets held in trust
Retirement accounts (IRAs and 4OK (K)) with a designated beneficiary
Payable on Death accounts
Life insurance policies with designated beneficiaries
What to Expect from Probate
While the outcomes of probate can differ due to the circumstances, there is a typical pattern for probate with a will and probate without a will.
Probate with Will
When there is a will, there is also a named executor. In this case, the executor begins the probate process.
Legally, the executor has the authority to value the assets, settle the deceased bills and owing taxes and distribute the deceased’s assets to their heirs and beneficiaries.
In this case, probate freezes the estate in a sense. This is until a will is validated, properties and assets are valued, and taxes and creditors are paid, and all interested parties are notified.
Once these tasks are settled, the court issues an order allowing distribution of the properties, after which the estate is closed down. An estate planning attorney in the Bay area can ensure your interests are protected.
Probate without a Will
When someone dies without a will, then California laws of intestate succession come into play to determine people who will inherit the deceased properties.
California intestacy laws stipulate the following:
For a married person without children, both the marital and non-marital property go to the surviving spouse
For someone who is married with children, then the spouse gets all their communal property. The spouse also gets 1/3 of the separate property if you had more than one child and 2/3 of the separate property if they only had one child. So, an only child would receive 1/3 of the deceased parent’s property. With more than one child, they would share 2/3 of the separate property.
If you die unmarried but with children, the children split the assets equally.
For someone survived by a spouse and parents, the spouse gets all the shared property. Separate property is split half and half between the spouse and parents.
If one is survived by parents only, the parents get all the deceased assets.
For someone survived by siblings and a spouse. The siblings and spouse share the separate property equally, while the wife gets all the community property
If one has no spouse, no living parents, and no children, their siblings, if any, share all the deceased property equally
If one dies without a spouse, living parents, children, grandchildren, or siblings, it first goes to their nieces and nephews. If none, it goes to grandparents, aunts, uncles, great-aunts, uncles, or cousins.
If a person dies with no living relatives, then their entire estate goes to the state of California.
Also, keep in mind that when the deceased owes more debt than the value of their estate, then there is a chance that their loved ones will not receive anything.
Hire an Experienced Bay Area Probate Attorney
Succession doesn’t always go as planned, even with a will in place. And facing probate on your own is likely to be a daunting, draining task that might cost you in the end.
One of the best things you can do when facing a probate is to hire a reputable probate attorney in the Bay area. And with matters of your finances and future at hand, you don't want just any attorney, you want the best. And the best can be found at the Law offices of Andrew Kern. Call us today for a free consultation.