- 7 min read
- Family members are not responsible for a decedent's debts.
- A decedent's debts are not canceled automatically.
- Learn more about your state's probate rules.
How to Understand the Probate Process, Who is Involved, Your Rights, and How to Get Started.
Almost everyone owns things or owes debt. Most of us have both. When a person dies, a process called probate determines who gets their possessions, which creditors are paid and how much.
An important note: Bills.com readers ask questions about probate issues frequently. Most questions are based on incomplete or inaccurate statements made by collection agents regarding a family’s liability for a deceased person’s debts. Under probate law, spouses and family members are not responsible for a deceased person’s debts. However, a deceased person’s debts are not canceled upon death, either. This article will help you understand the probate process, who is involved, your rights, and how to get started.
Like other areas of law, probate uses unusual words and common words in a peculiar way. For example, the deceased person is called a decedent. The decedent’s property and debts are called an estate. A beneficiary is a person who has a legal right to inherit. We will use these terms here.
Probate deals with:
- Transferring the property of a decedent to the heirs or beneficiaries
- Deciding if a will is valid
- Taking care of the decedent’s financial responsibilities
In a probate case, an executor (if there is a will) or an administrator (if there is no will) is appointed by the court as personal representative to
- Collect the assets
- Pay the debts and expenses
- Distribute the remainder of the estate to beneficiaries
All of this happens under the supervision of a state probate court. A case can take between 9 to 18 months to complete the probate process. Some cases take more time because of beneficiaries’ or creditors’ claims.
Is Probate Required?
You may not need to go through the probate court to get title to a decedent’s property. Figuring out if you have to go to probate court depends on many issues, like the amount of money involved, the type of property involved, and who claims the property.
Deciding if involving a probate court also depends on the how the property is owned (the type of title ownership) or if there is some type of contract with beneficiaries. For example:
Type of Title: Sometimes all or some of a decedent’s property passes directly to the beneficiaries because of how the decedent owned the property. For example, in the following cases, the property goes to the survivor automatically at the instant of the owner’s death:
- Property owned in joint tenancy
- Property owned owned as community property with the right of survivorship
- A joint bank account owned by several people
- A bank account transferred to someone when the owner dies
Even in these cases, the survivor may have to take legal steps to clarify his or her ownership of the transferred property.
Type of Contract: Sometimes all or some of a decedent’s property does not need to go through probate to pass to the beneficiaries. This is because this property is a type of contract with named beneficiaries. Examples include:
- Life insurance benefits paid to someone other than the decedent’s estate
- Retirement benefits
- Death benefits
Starting the Probate Process
Each state has a threshold amount below which the probate process is not required. If you have the legal right to inherit personal property, like money in a bank account or stocks, and the estate is worth less than the decedent’s statutory amount, you may not have to go to court. Consult with a lawyer in your state, or your state’s statutes, to learn what the threshold amount is.
If the decedent’s property is worth more than the statutory amount, someone (presumably a family member) must go to court and start a probate case. If there is a will, the custodian of the will (the person who has the will at the time of the person’s death) must, within a certain number of days of the person’s death, take the original will to the probate court clerk’s office. He or she must also send a copy of the will to the executor (if the executor cannot be found, then the will can be sent to a person named in the will as a beneficiary).
A petitioner must start a case in court by filing a petition for probate. Details vary by state. After a probate case is filed the probate clerk sets a hearing date, and begins a series of events according to state law.
The Uniform Probate Code is intended to make probate procedures simple and inexpensive, especially for spouses. When a married person residing in a UPC state dies without a will... ...and left no parents, children, or grandchildren, the surviving spouse inherits the estate. ...and a parent survives, the surviving spouse inherits the first $50,000 and splits the rest with the parent(s). ...and a child or grandchild survives, the surviving spouse inherits the first $50,000 and splits the rest with the (grand)child. Consult with a probate lawyer whether the decedent resided in a UPC or non-UPC state.
More About the Probate Process
Some state bar associations and state court Web sites offer more information about the probate process and costs. Consult with a lawyer who has probate process in the decedent’s state to learn more about local details.
|Probate Required When the Estate Is Larger Than This Amount||Uniform Probate Code State||Probate Laws|
|Alabama||>$3,000||Title 43 Chapters 2 & 8|
|Arizona||>$50K personal property or >$75K real estate||Yes||Title 14|
|Arkansas||>$50K all property||Title 28|
|California||>$150K all property or >$50K real estate||Calif. Probate Code|
|District of Columbia||>$40K||Division III, Titles 18-20|
|Georgia||No full probate required if: (i) no will, (ii) no debts owed, AND (iii) property is not contested by heirs who agreed upon how it will be distributed.||Title 44|
|Iowa||>$25K||Title XV, Subtitle 4|
|Kentucky||>$15K||Titles XXXIII and XXXIV|
|Louisiana||>$75K||Civil Code Articles 880 to 899|
|Maine||>$20K||Yes||Title 18 & 18-A|
|Maryland||>$30K or >$50K if beneficiary is surviving spouse||Estates and Trusts Titles 1-16|
|Massachusetts||>$25K||General Laws Part II Title II|
|Michigan||>$15K||Probate Code Chapters I to XIII|
|Minnesota||>$20K||Yes||Chapter 524 Uniform Probate Code|
|Missouri||>$40K||MRS Title XXXI|
|Nebraska||>$50K personal property or >$30K real estate||Yes||NRS Chapter 30|
|Nevada||>$20K||NRS Title 12|
|New Hampshire||No probate if decedent left will naming spouse or child as sole beneficiary.||Title LVI|
|New Jersey||>$20K if beneficiary is surviving spouse, or >$10K if not||Title 3A and 3B|
|New Mexico||>$50K for whole estate or >$500K tax value of residence||Yes||Chapter 45: Uniform Probate Code|
|New York||>$20K||Estates, Powers and Trusts|
|North Carolina||>$20K personal property or >$30K if beneficiary is surviving spouse||NCGS Chapter 47|
|North Dakota||>$50K||Yes||Title 30.1|
|Ohio||>$35K or >$100K if surviving spouse is beneficiary||Title 21|
|Oklahoma||>$20K or >$200K if death occurred 5+ years ago||Titles 58, 60 and 84|
|Oregon||>$275K||Title 12, Chapters 111-118|
|Rhode Island||>$15K||Title 33|
|South Carolina||>$10K||Yes||Title 62|
|South Dakota||>$50K||Yes||Title 29A|
|Tennessee||>$25K||Title 32, Chapter 2|
|Texas||>$50K or if all inheritors agree||Texas Probate Code|
|Virginia||>$50K personal property||Title 64.2|
|West Virginia||>$100K||Chapter 44|
|Wisconsin||>$50K||Chapters 851 to 881|
|State probate laws are not as simple as this table might suggest. Consult with a probate lawyer in the state where the decedent resided to learn the probate rules that apply.|
State-By-State Probate Laws. Source: Bills.com
Struggling with debt?
If you are struggling with debt, you are not alone. According to the NY Federal Reserve total household debt as of Quarter Q4 2022 was $16.91 trillion. Student loan debt was $1.60 trillion and credit card debt was $0.99 trillion.
A significant percentage of people in the US are struggling with monthly payments and about 26% of households in the United States have debt in collections. According to data gathered by Urban.org from a sample of credit reports, the median debt in collections is $1,739. Credit card debt is prevalent and 3% have delinquent or derogatory card debt. The median debt in collections is $422.
Collection and delinquency rates vary by state. For example, in Utah, 13% have student loan debt. Of those holding student loan debt, 7% are in default. Auto/retail loan delinquency rate is 2%.
While many households can comfortably pay off their debt, it is clear that many people are struggling with debt. Make sure that you analyze your situation and find the best debt payoff solutions to match your situation.