When a person dies, there are normally a number of specific things that must happen to close out the estate. In some parts of the United States, a probate court process is required only if the decedent's assets were at or above a specific dollar value; in others, no court process is needed if the decedent did not own any physical property. When court processes are needed, however, they generally follow similar steps.
Probate Case
A probate case is opened with the local court that handles probate in your state or county. The probate court process is generally used as a way to legally transfer ownership of physical property from the deceased person to an heir or relative. Check with your state probate court to determine whether probate cases must be opened for all deaths or only in specific circumstances.
Executor Assignment
When a probate case is opened, the judge assigns one person to be the estate executor, or administrator. Often the administrator is selected by the decedent while they're still alive and the judge accepts that selection. If there is an objection to the selected executor, however, or if none was appointed previously, the judge will do so upon the opening of the case. Executors are often close family members or legal representatives.
Creditor Notification
Part of the executor's job is to compile a full list of assets and debts, then notify all interested parties that the decedent has passed on. In some states, the notification must be sent to all creditors by mail as well as published in a local newspaper for a specified period of time.
Debt Payoff
Once the full inventory of assets and debts is compiled, the executor or probate judge begins settling all outstanding debts. Sometimes liquid assets such as the decedent's bank accounts are enough to pay off all debts, and other times physical assets must be sold first so that the debts can be paid.
Asset Distribution
After all debts for the estate are paid in full -- including any funds due for the probate court costs, administration fees and funeral expenses -- the executor distributes remaining estate assets to beneficiaries and heirs according to the terms of the decedent's will. If the decedent did not leave a will, remaining assets get distributed according to state law.
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