“What is probate?” This is a question we frequently encounter, and it’s essential to demystify this legal process.
Probate encompasses three aspects: it’s a legal code, a procedural process, and the name of the court itself. Essentially, it is the system that the state of California, along with many others, has established to address the affairs following a person’s passing. It involves a systematic approach, including notifying creditors, ensuring the rightful distribution of assets to heirs (in the absence of a will) or beneficiaries (if a will exists), and providing mandated notifications to specific public agencies like the Department of Health Services and the Franchise Tax Board. In essence, probate is a necessity when the deceased individual owned any real property of value.
Probate comes in various forms, each with varying durations and associated costs, contingent upon the total property value. The probate process can span from one to two years and potentially amount to five to ten percent of the estate’s value. However, if the real property in question has a lower value, the process can be expedited, taking just six to eight weeks. Generally, if an estate’s value surpasses $150,000, it often leads to probate court involvement. This necessitates the submission of a petition to the court to initiate the formal process, a task we undertake regularly. With extensive experience in handling numerous probate cases, we can efficiently assist families throughout this journey.
Is probate inevitable for estates not placed in a trust? Indeed, in the vast majority of cases we encounter, probate becomes a requisite, especially when real property exceeds a value of $150,000. However, exceptions may arise when the sole asset is a bank account valued below $150,000, potentially allowing for a private resolution with the bank, depending on the account type. Assets like life insurance policies or retirement accounts, bearing beneficiary designations, often bypass probate, as they are directly allocated to the named beneficiaries.
