Probate estate refers to assets belonging to someone who has recently died.
Probate is required in all 50 states unless inheritance assets are protected through a trust.
The process is used to validate decedents' Wills, pay outstanding debts, and distribute assets to named beneficiaries.
The process for transferring probate estate assets to heirs typically takes six to nine months.
The duration depends on many factors including court caseload, complexity and value of the estate, and how well family members interact.
If the decedent executed an ironclad Will, the estate can pass through probate rather quickly.
If no Will exists, or if heirs contest its validity, probate can drag on for several months or even years.
This can potentially bankrupt estates with real estate holdings because expenses related to the property must be paid through the estate.
An estate administrator is designated within the last will.
Administrators are responsible for obtaining appraisals for real estate and valuable assets such as antiques, jewelry, art or collectibles.
They must pay the decedent's outstanding debts or negotiate to have balances reduced.
Distribution of inheritance assets cannot occur until the probate estate is properly settled.
If the appointed administrator is unable or unwilling to manage the estate, they must submit a written request asking the court to be removed from duty.
  When a person dies intestate (without a will) an estate administrator must be appointed to oversee the estate.
This is generally the surviving spouse or adult children.
If no spouse or children exist, the next choice is direct lineage relatives such as mother, father, sister, brother, aunt or uncle.
  Probate laws vary from state to state.
Several states require a formal petition be filed in court to provide evidence everything has been paid and all assets properly distributed.
Others extend court confirmation and allow Administrators to oversee all aspects of the estate without interference.
The only way to avoid probate is by establishing a revocable or irrevocable trust.
Trusts are generally used by people who own assets valued over $100,000.
Individuals whose estates are valued below this amount can keep inheritance out of probate by designating transfer on death or payable on death beneficiaries.
Transfer on death beneficiaries can be established for investment and retirement accounts, while payable on death beneficiaries can be established for bank accounts.
Individuals who own motor vehicles can add a beneficiary by having the property jointly titled.
Upon death, the beneficiary can present the title and death certificate to the department of motor vehicles for title transfer.
Properties assigned through joint titles are exempt from probate.
Administering a probate estate requires time and effort.
Estate executors should possess basic accounting skills and the ability to multi-task and mediate with family members if disputes occur.
Administrators are compensated for their duties.
Compensation is generally disclosed in the Will.
Otherwise, administration fees are paid according to state probate laws.