January 3, 2016
What
Happens After You’ve Passed Away?
So you’ve prepared and properly executed your
last will and testament. Great! But what happens when you pass away? How are
your wishes sure to be fulfilled?
Whether you have executed a will or not, in the state of Texas, your estate
will go through a process known as probate. At its most basic level, probate is
the process by which a court administers your will. The goal is to meet your debt
obligations to your creditors and ensure that you final wishes are seen
through. It sounds complicated, but don’t worry – it is a common procedure
that, over the years, has been streamlined into a predictable process.
The
Probate Process
The probate process involves several steps: filing
an Application for Probate, going through a probate hearing, cataloging your
estate, notifying your beneficiaries, paying your creditors and finally, distributing
your remaining assets to your beneficiaries.
Step
One – The Application for Probate
The first step in the process is filing an Application
for Probate with the probate court. Once filed, there is a two-week waiting
period, during which the county clerk issues a Posting Notice of Probate
Administration. This notice is intended to notify all interested parties that a
probate application was filed for your estate, and that an administration of
the estate is about to take place. If there are no contests to the
administration, the probate court will start the administration process of your
estate.
Step
Two – The Probate Hearing
Once the court has determined there are no
contests to probating your will, a hearing in the probate court will take
place. During this hearing, the court will formally and legally recognizes your
passing. The court also will determine and verify the existence of a valid
will. The court also will either appoint an administrator or verify the person you
have chosen as the Executor/Administrator of your will.
Step
Three – Cataloging Your Estate
Once an Executor/Administrator is officially recognized
by the probate court, he or she must catalog and report all of the assets in
your estate.
Step
Four – Notifying Your Beneficiaries
Once the estate has been cataloged, the
Executor/Administrator will notify your named. Note: If you do not have a will, or your will is found invalid by the
court, the probate court will determine who will inherit your estate, according
to statutory laws of intestacy. That is why it is highly recommended that you prepare
and properly execute a will – so that you, not the court, determine who will
inherit your estate.
Step
Five – Paying Your Debts to Creditors
Most people leave behind debts when they pass
away; things like medical bills, mortgages for property, credit card or other
consumer debt, car loans, etc. These debts must be resolved and paid from your
estate before any of your beneficiaries are entitled to what is left. Your creditors
must be notified of your passing and given the chance to file claims against
the estate to seek to have your debts paid. (One of the most often used ways of
informing creditors of your passing is by having a notice published in a
newspaper.)
Step
Six – Distributing Your Assets to Your Beneficiaries
Once all of your debts are paid and/or
discharged, and all other disputes are resolved by the probate court, your
assets will be distributed to your beneficiaries.
It’s just that simple!
While the probate process can be a daunting experience
for someone who has never done it before, it doesn’t have to be. If you choose
your Executor/Administrator wisely, and they know exactly what to expect, they
can get through the probate process with relative ease.