The Probate Process In 4 Steps

There are few things that are guaranteed in life. Taxes and aging are two of life’s guarantees, which actually combine to create a third guarantee for many people in our country: the probate process.

What is probate? Probate is the legal process that oversees and administers a person’s legal and financial affairs after their death. This includes the distribution of assets and probate property in your estate after your death. 

When someone dies with a will, that will states where their assets, money, and properties go. If someone dies without a valid will (or without a will at all), the probate court ensures that all the deceased’s assets are distributed according to the law of that state.

Probate rules vary from state to state, but the probate process ends with a court decree that provides proof that the title has been transferred and ensures that property goes to your relatives or those you wish to obtain it. 

So whether you’re now dealing with the probate process yourself because you have an inherited home or you’re trying to get into probate property investing or fall somewhere in between, keep reading. 

We’re going over the probate process in four steps to keep things simple and understandable.

Let’s get started!

Step 1: Proving the Will & Executor Appointment

A will is a document that details the wishes of the one who passed on. Many people have a valid will document before they pass, and this document usually names an executor. If no executor is indicated or there is no valid will, the courts will appoint one for the duration of the process.

The executor is the person who is in charge of the probate process for the deceased.

In the case that a valid will exists, most state laws require the executor file the will with their local probate court as soon as possible after the death of the deceased. They may also be required to file a death certificate and other documents to verify the validity of the will and the deceased.

A state-specific form in connection with the appointment of the executor is also required with the submission of the will. It may also be necessary for the executor to file an application to open an estate at the same time that they’re appointed or for the executor to post a probate bond.

Once the executor is appointed and the will (or lack thereof) is verified, the probate process truly begins.

Step 2: Taking Inventory

Before items can be distributed, liquidated, or sold, the courts and the executor need to know all of the person’s assets, properties, estates, etc. 

During this stage, the executor is required to identify all of the decedent’s assets. Alongside this inventory, the executor must also detail the value of every asset.

This requires heavy research into the decedent’s investments, taxes, insurance policies, properties, and more. 

Some helpful resources here are probate property experts including some cash home buyers, probate attorneys, real estate agents, or appraisal companies. 

At this point, none of the assets are for sale or even sold. This step is to understand what assets the decedent has and what the approximate value of those assets are.

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Step 3: Distribution and/or Liquidation of the Assets

Now that the inventory and value of that inventory are complete, it’s time to distribute and/or liquidate those assets. Everything must go!

For example, if the will states that an apartment the deceased owned is to be left to their uncle, then the property can be distributed to the rightful person.

If assets aren’t designated to be distributed or there’s no one to give the asset to, then the asset can be liquidated (aka sold). This includes both non-physical and physical assets like stocks and real estate. 

It’s during this stage that a bank account is opened for the estate to pay liabilities out of. As assets are sold, the money piles up in that account. 

Step 4: Settling the Estate

The settling of the estate is the final step of the process. 

Once all the assets have been distributed or sold, all the money is in the bank account is then distributed to the rightful groups.

First, the money must be used to cover any debts, taxes, mortgage payments, etc, that the decedent owed when they died. Next, probate attorneys and any other counsel get their cut. 

Finally, the rest of the money is distributed to any heirs or organizations designated by the will.

Growing Edge Can Help You Through the Probate Process

Hopefully this helped you understand the probate process a bit better. 

Of course, this is a simplified view of the entire process. There are many more details and people involved that can make the whole thing a stressful mystery. 

We can change that. Growing Edge Properties has years of experience working alongside the probate court process and working with probate properties. We can help you bring your property through the probate process. 

We can offer guidance and act as your go-to informational resource. We also have connections to some of the best probate attorneys in your area, and we’ll even be your probate property’s cash buyer!

Contact us today to make this process much easier.