If a Probate Division court has jurisdiction over a deceased person’s estate, administration will typically fall into one of the following categories:
- Simplified probate, which is a less-intensive form of estate administration with limited oversight. In simplified probate, estate assets can be transferred to heirs without going to court. Estates only qualify for simplified probate if they meet certain conditions and have a value no greater than $166,250.
- Full probate, which is a more time-consuming process that consists of many different steps. Some estate assets, like real property, must always go through full probate. How long it takes to complete probate depends on many factors. Some estates that require full probate hold assets that can be transferred through simplified procedures.
In either case, probate is usually unavoidable unless the entire estate qualifies for the simplified process or the decedent made a plan designed to negate the need for probate.
Intestate Succession: Probate and Estate Administration Without a Will
The estates of people who pass away without a valid will or trust are subject to California’s rules of intestate succession. In an intestate succession, the court makes most big decisions about estate administration. Estate assets must go through probate unless they are exempted, but inheritances are determined by a strict legal formula that privileges close surviving relatives, like the decedent’s spouse and children.
Understanding the Different Steps of Estate Administration
Every probate case varies in its details and its complexity. However, estate administration typically consists of the following steps:
1. Identifying the Executor
The executor, sometimes termed the “personal representative” or “estate representative,” is the person responsible for initiating probate, inventorying estate assets, paying creditors, and distributing inheritances. Executors are often named in the deceased person’s last will and testament.
If the decedent died intestate, the court may approve a surviving relative to act as executor or appoint one of its choosing.
2. Determining the Right Course of Action
Estates that do not qualify for simplified probate usually go through full probate. However, there are exceptions to this rule. One of the most significant exceptions relates to people who transferred their assets to a trust, as such assets are categorized as “trust assets” and are not considered part of the decedent’s estate.
Other exceptions could include, but are not limited to, the following:
- Assets controlled by beneficiary designations
- Retirement accounts
- Payable life insurance policies with a living beneficiary
- Properties held in joint ownership with rights of survivorship
- Community property, if the decedent leaves behind a surviving spouse
It is not uncommon for some estate’s assets to be subject to probate and for others to be exempted.
3. Opening Probate and Proving the Will
Executors, or the person holding a copy of the deceased person’s will, must initiate probate within 30 days of death. Initiating probate involves:
- Filing a petition to begin probate
- Submitting a copy of the valid, original will to the probate clerk’s office
- Notifying heirs, creditors, and other interested parties that probate is being initiated
4. Creating an Inventory of Assets
One of the most challenging responsibilities executors face is the inventorying or “marshalling” of estate assets. Marshalling assets entails the following:
- Locating all of the deceased person’s assets
- Checking letters, email accounts, and other records to ascertain whether the deceased person had any assets they did not list in their will
- Creating a comprehensive inventory of all assets subject to probate
- Obtaining appraisals for certain types of assets, such as artwork or high-value collectibles
The estate representative must manage estate assets until they have been used to pay creditors or have been gifted to heirs. Executors who mismanage assets—even by mistake—could be held liable for any losses incurred by the estate or the estate’s beneficiaries.
5. Assessing Creditor Claims
During probate, creditors will have an opportunity to submit claims against the deceased person’s estate. The executor must assess each claim, determine whether it is valid, and issue a response. Inheritances can only be distributed after valid debts have been paid.
6. Paying Estate Taxes
California does not have a state-level estate tax, but high-value estates may be subject to federal taxation. Rates vary, ranging between 18% and 40%. Ensuring that estate taxes are paid is the executor’s responsibility—not the responsibility of any heir.
7. Distributing Inheritances
After the executor has gathered and inventoried estate assets, paid creditor claims, and cleared estate taxes, they may distribute inheritances to the decedent’s heirs in accordance with the terms of the will or other estate plan.
Bear in mind that executors are bound by fiduciary duty. So, if you are an executor, you have a legal obligation to act only in the best interests of the estate. This means honoring the decedent’s intent, mediating disagreements among heirs, and defending the estate against lawsuits and other challenges.
Avoiding Obstacles: How an Attorney Can Help You Administer an Estate
You don’t have to deal with the stress and uncertainty of estate administration by yourself. The Law Firm of Kavesh, Otis & Minor, Inc. has spent decades helping Californians make sense of probate. Our experienced team of estate administration attorneys could help you with the following:
- Identifying your best options for cost-effective administration
- Filing the right petitions with the right courts—on time and without mistakes
- Sending timely notice of probate proceedings to heirs and creditors
- Tracking down estate assets and appraising collections and other unique possessions
- Preparing and paying estate taxes
- Assessing creditor claims and ensuring that bad-faith attempts to collect invalid debts don’t come at the estate’s expense
- Distributing inheritances
- Defending the estate against lawsuits and other contests
