What Is Probate?

The probate process is the court-supervised administration of a decedent's estate. This process can take months or even a year to complete. Only property included in the "probate estate" will be handled through the probate process. The probate estate is comprised of any property owned by the decedent alone and not distributed before death or through automatic transfer at death. Good planning can simplify the distribution of your assets at death by minimizing or even eliminating the probate estate.

Certain property will transfer automatically at death, including property held in joint tenancy with right of survivorship, or property held by a married couple as tenants by the entirety. Additionally, bank accounts and other assets registered as payable-on-death or transfer-on-death will pass to beneficiaries automatically at death outside of probate. Life insurance proceeds and retirement accounts will also pass without court intervention as long as a beneficiary has been named. Finally, property held by the trustee of a living trust will not become part of the probate estate.

The probate process begins with the appointment of an executor to manage the distribution of a decedent’s assets. A will can be utilized to appoint an executor. Without a will, a probate court will select an executor to administer a decedent’s estate. An executor typically submits the will to the probate court. The probate court then supervises the executor’s distribution of the decedent’s assets to beneficiaries named in the will (or according to state law if no will was established). The executor must also pay off the decedent’s outstanding debts and taxes from estate assets. Investopedia provides an extensive overview of the probate process.

While the probate process is an effective way to administer a decedent’s estate, planning in advance can minimize or even eliminate the need for probate court involvement.