How Probate Works
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- Опубліковано 2 чер 2024
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In this video I describe how a probate works from start to finish. Now the rules of each state can vary somewhat and in this video I describe exactly how a Louisiana probate gets handled. It’s worth noting at this point that while other states call this proceeding probate, Louisiana refers to the Succession as the court and attorney-involved procedure that is required when someone dies with assets in their name, such as real estate, a business or llc, bank accounts, or stock brokerage accounts, and there is no way to transfer those assets to the heirs other than to get the judicial system involved and get judges to sign court orders ordering that assets be transferred to the appropriate heirs.
0:00 How Probate Works
0:47 Sample Facts
1:31 Get Executor Confirmed
2:28 Open Estate Account
3:35 Pay Estate Debts
4:00 Nonprobate Assets
4:45 Reasons for Probate Delays
5:36 Judgment Ordering Distribution to Heirs
7:13 Smooth Probate vs Chaotic Probate
in 2020 I went through this for my step-son in Texas. It took the court 3 months to validate the will and accept me as executor. My step-son had $24,000 in debts. I would have paid them as the estate had funds to do so. My attorney advised me not to. Instead permissive notices were sent to the 4 debt holders. This required them to prove their debts in a specific way with 120 days to comply or the debts were banned. Much to my surprise they made no effort whatsoever. $24,000 of debt was banned. I don't know if other states have similar laws. My step-son had an IRA with me named as beneficiary, before probate even opened I had it transferred to me. In this case the only delay was approving the will. As executor and sole beneficiary, I kept his vehicle, sold his home, etc and kept the proceeds.
Wow that’s crazy
Paul is an executor still necessary if you have a properly funded trust and pour over will?
Honestly, this truly sounds like laws were passed to take money from the family
Medical bills can take 6-8 months to made available - now what? Our attorney said death mitigates bills in some way - she has all he school loans only in her name so that if she dies, her family won’t have to repay the loans. Seems pretty complicated to me…
I think you are talking about relatives not being responsible for debts of the deceased when the estate cannot pay the debt.
@@gbinman …that’s not what she said - she said if she died, her college debts would be canceled and her estate, husband and kids would not be liable in any way. Not an issue for me since we have no significant debts but an interesting take on the lawyer’s part.
What about a small estate? Less than $125,000?
Do the Attourney fees typically come from the estate account if the executor is doing all the work and getting part of the inheritance that is to be dispersed to others? Why not also do a Trust to avoid these costs and headaches if the person has investment accounts, cars, and a house?
In the probate I personally handled, there were attorney fees, $1500 plus some extras that I had them do for me. My attorney saved me $24,000 because debtors after being served permissive notifications failed to comply within 120 days and their debts was banned. Left to my own, I would have paid them but my attorney said no. At least in this case, having an attorney was awesome.
@@gbinman thanks. That is helpful and I was thinking it would be more advantageous to get my family member to do a TRUST other than a Will. Regardless, it’s nice to know that the Attourney may not skin you. It’s such a challenging topic.
What about IRAs with beneficiaries - my understanding is they are not part of probate.
they are not. Anything with a beneficiary is excluded from probate. In my case, I have all bank accounts, brokerage accounts, retirement accounts, vehicles and my home assigned beneficiaries via POD or TOD statements. When I die there will be nothing to probate but my soiled clothing. LOL
Why would you pay a deceased person's outstanding bills? Wouldn't they automatically cancel at death?
Deceased's debts must be paid before heirs inherit.
I just turned 65yrs old, been disabled, so I haven't driven or needed a license/picture I.D. for the last 10yrs. Now, due to my Mother's passing, all of a sudden I need an I.D.to set=up a Bank Account..., and getting one without a Birth Certificate is a severe Pain in the Butt! (You need an I.D. to get a Birth Certificate and you need a Birth Certificate to get a Picture I.D....Unless you're an Illegal..) My brother is requesting a Birth Certificate for me. I don't know how he talked them into it. To complicate things, I was born in Minnesota, but have (thank God) lived in the Southeast for the last 55yrs..I printed all that out just to say this = Thank You for this website & your videos! Some of your advice now, is going to make me, as well as others, have their affairs in better shape when we pass-on, next! God bless you real big!😇@@americasestateplanninglawy1946
@@americasestateplanninglawy1946. …that’s not what our attorney said in Ohio.
debts are not cancelled by death. The estate must pay them. In Texas, debtors are sent permissive notifications which direct them as how to file against the estate. They have 120 days to comply or their debts are banned. In the case of my step-son's estate, none of the debtors complied and the combined debt of $24,000 was banned. The estate could have easily paid it. go figure.
What if the decedent has no estate to transfer to heirs? In other words, the decedent has no house, vehicle, or assets that could be used to pay their outstanding debts? Is the family required to pay the decedent’s debts in that instance?
Or if the decedent has a house and car, is the executor required to sell those assets to pay the debts?@@americasestateplanninglawy1946
whoaa unto the doctrine an the law. You all will meet father god.