The period following the death of a loved one is often emotionally tumultuous and stressful. Between funeral arrangements and personal issues, it is easy to become overwhelmed. One of the most important matters to address after a loved one passes away is the management of their property and financial affairs. In some situations, a family will need to go through the probate process after a loved one’s death. While the probate process may be time-consuming and arduous, it is possible to mitigate stress with a full understanding of what to expect and how to seek help during this difficult time.
One of the central focuses of our work at Baxter Legal Services is estate planning and probate. We work alongside our clients to simplify and streamline the probate process, ensuring that common pitfalls and legal missteps are avoided. To learn more about how our experienced estate planning attorneys can help you, consider contacting our legal team today at (425) 686-0574 to schedule an appointment
What Is Probate?
Probate refers to the legal process in which all assets of an estate are assessed and distributed to beneficiaries. A beneficiary is the person – or in some cases entity – who is identified as a recipient of the assets or property of an estate. Beneficiaries can be designated in the estate plan of a person, in their Last Will and Testament (Will) or in certain financial documents such as life insurance policies or banking accounts.
When an individual passes away, their assets and properties must be transferred to new owners. If the person died with a Will, probate is the general administration of that will. If they died without a Will, the probate process is used to identify beneficiaries and distribute the asset according to state law. Probate is also used to pay any remaining debts or liabilities in a person’s estate.
What Does the Probate Process Entail?
Depending on the deceased’s estate plan, specific individuals must be notified of their death. If they had a Will, the personal representative named within the Will must be notified so they can begin distributing the estate. Similarly, if the deceased left a Trust, the trustee must be notified to manage the Trust. These individuals will be obligated to oversee key aspects of the probate process.
The responsibilities of the personal representative include:
- Collecting and inventorying the deceased’s assets
- Managing the assets during the administration process
- Receiving and paying creditors
- Distributing other assets to all beneficiaries
To officially begin the process, a petition for probate must be filed along with the original Will (if there is one) and a copy of the decedent's death certificate. The probate court will then issue a document to the personal representative, which acts as proof of their legal authority to collect and administer the property and assets of the estate.
In some cases, the personal representative may be able to request a simplified probate process known as nonintervention administration. Using this simplified probate process, the personal representative can administer the estate without the need for court supervision. Alternatively, if this option is not possible, the personal representative is required to obtain court approval before taking any action.
In many cases, the personal representative will open a specific bank account for the estate during the probate process. This person is also responsible for handling all debts and filing tax returns for the deceased individual. During the probate process, it is essential to keep detailed records of how the estate is handled, transferred, and distributed. Doing so can help ensure that legal issues do not arise down the line.
How to Handle Outstanding Debts?
It is not uncommon for a person to have outstanding debts at the time of their death. During the probate process, debts are reviewed and addressed by the personal representative. In probate, claims are used to formally request payment for a debt. Creditors are required to file a claim to be considered for payment.
To file a claim, it is first necessary to identify the court in which the estate is being probated. Typically, probate is conducted within the county that the person resided, died, or held property in. Then, a creditor’s claim form must be filed. The information requested in the form varies from court to court, but almost always requires basic information regarding the debtor, creditor, and nature and amount of the debt. Documentation may be necessary to prove the existence of the debt, such as a bill of sale or a copy of a valid contract. It should be noted that there are time limits placed on the filing of claims, which can be found in Section 11.40.051 of the Revised Code of Washington.
What Is the Cost of Probate?
One of the most notable disadvantages of probate is the cost. Between filing fees, out-of-pocket expenses, and personal representative compensation, probate can quickly become expensive. The total cost of probate varies depending on a range of factors, such as:
- Size of the estate
- Type of assets and property involved in the estate
- Number of beneficiaries and creditors
- Legal issues/disputes
- Issues among beneficiaries
Other potential costs depend on the individual estate and the preferences of the personal representative. In some cases, it may be necessary to obtain appraisals to estimate the value of certain property and assets, such as real estate, antiques, or a business owned by the deceased. Furthermore, some people opt to retain an accountant or CPA to avoid any potential issues related to financial mismanagement.
The Differences Between Testate and Intestate Probate
The legal process that occurs after a person passes away depends largely on whether or not they died with a Will. If they did have a valid Will at the time of their death, they are said to have died testate. On the other hand, if they passed away without a will, they are said to have died intestate. The differences between testate and intestate probate are substantial, so it is imperative to understand the implications of each form.
In the state of Washington, the distribution of assets in intestate probate depends primarily on the family status of the deceased. Intestate distribution varies depending on whether the person was married, had children, or parents and siblings to inherit their estate. For example, If a person died intestate and was unmarried, their entire estate could be inherited by their children. If they did not have children, their estate could be inherited by their parents. If a person died intestate and they were married, their spouse will receive all community property and half of all separate property owned by the deceased. Any children will inherit the remaining half of the decedent's separate property. More detailed information regarding intestate distribution can be found within Section 11.04.015 of the Revised Code of Washington or by speaking with a knowledgeable probate attorney at Baxter Legal Services.
Testate probate is much more straightforward, considering the deceased will have established a Will to name specific beneficiaries. In these situations, all property and assets will be distributed based on the provisions of the Will. This is generally preferable for most individuals, as it provides the power to specify exactly how property will be passed down. This option is not available when a person dies intestate.
To avoid intestate probate, it is necessary to establish a comprehensive estate plan that includes documents such as a Will and a Trust, depending on your objectives and unique estate.
Why Should You Consider Hiring a Probate Lawyer?
Regardless of whether a person died intestate or testate, probate is a legally complex process. Many people find that hiring a probate lawyer helps immensely to expedite the process and avoid potential complications that may occur. Probate lawyers have the skill and expertise necessary to ensure that the probate process is properly completed.
To determine whether or not hiring a probate attorney may be necessary, it can be helpful to consider the following:
- Is it possible to transfer the deceased person’s assets outside of probate?
- Does the estate qualify for nonintervention administration in Washington?
- Are there any disputes among family members or loved ones, or do you anticipate that any disputes may arise?
- Does the estate contain complicated assets or valuable property?
- Is there sufficient money in the estate to address outstanding debts?
- Does the estate owe state or federal estate taxes?
If any of the aforementioned issues are applicable, seeking professional legal assistance may be beneficial. Hiring a probate lawyer is one of the ways to avoid costly mistakes and mitigate the likelihood of family disputes. Offering an unbiased perspective and wealth of knowledge, probate attorneys can ensure that the probate process is handled with utmost care.
While probate can quickly become a burdensome process, it does not need to be stressful. Having an experienced probate lawyer to ensure that the process is handled according to state law, all requirements are met with diligence, and to uphold your interests throughout can be incredibly valuable. At Baxter Legal Services, a large part of our practice is centered around providing compassionate legal services to families following the death of a loved one. To speak with an experienced attorney, consider scheduling a consultation with us at (425) 686-0574 today.