Dealing with the loss of a loved one is difficult enough without having the added stress of a legal procedure looming on the horizon. If you are facing probate, you may feel confused and intimidated, dealing with so much at once. However, having a clear Texas probate list will help give you peace of mind as you prepare for the process. Being familiar with these steps will help you feel more confident.
Locate the Original Will And File For Probate
Once you find the original will, the executor named in the will files an application for probate, usually in the county where the decedent lived. The court will review the will, confirm the executor's appointment, and officially open the probate. The executor will be provided with Letters Testamentary, which will give them the authority to act on behalf of the court in such things as collecting all of the estate's assets, including any funds in financial accounts. Because the process can get complicated, many people hire a probate attorney for consultation throughout the process.
NOTE: If the decedent died without a will, the court declares the estate intestate and appoints an administrator to distribute assets based on Texas intestacy laws. This process takes longer, because the court must determine who the heirs are and how the assets are distributed.
Open A Separate Bank Account
Opening a bank account in the name of the estate helps keep clear financial records of all transactions you will make on behalf of the estate. It will be used to make bill payments, tax filings, and distribution of assets to beneficiaries.
Notify Beneficiaries and Creditors
Notify beneficiaries and creditors about the probate proceedings. Texas law requires this notification in order to give anyone with a legal interest a chance to voice objections. When the application to probate a will is filed, the executor must publish a notice in a local newspaper in order to inform known creditors. The court may also post a notice online. This also provides any interested parties with a chance to contest the validity of the will.
Obtain the Death Certificate
It is important to obtain several certified copies of the death certificate early on from the county or health department. Financial institutions, insurance companies, and court filings will all require certified copies of the death certificate.
Take Inventory and Appraise Assets
An inventory of all assets helps determine estate taxes and ensure fair distribution. Assets typically include:
- Real estate properties
- Bank accounts
- Investment accounts
- Retirement accounts
- Vehicles
- Valuable personal property, such as jewelry and art
- Digital assets, such as online financial accounts and cryptrocurrancy
- Manage the Estate: Debts and Taxes
- You may pay outstanding debts and remaining taxes before you distribute any assets. Debts include:
- Credit card balance
- Mortgages and loans
- Unpaid bills and utilities
- Medical bills
You must also pay any federal and state taxes owed:
Prepare and file the decedent's final income tax returns.
Although Texas does not impose an estate tax, federal estate taxes may apply to estates exceeding the exemption threshold. Check with your probate attorney to be sure you are compliant with all tax issues.
Remember to pay everything out of the estate bank account in order to keep clear records.
Distribute Assets to Beneficiaries
Once all debts and taxes have been paid, distribute the remaining assets to beneficiaries according to the will, or, if no will exists, according to Texas intestacy laws. In case of intestacy, the probate court will make sure all assets are distributed fairly. Make sure all beneficiaries receive documentation for their records.
Close the Estate
Once all of the above steps have been completed, prepare a report that details the administration of the estate, including expenses, distribution, and resolution of debts, and submit it to the beneficiaries of the will. In Texas, we typically don’t close the estate in case an asset is found years later.
Going through probate after the death of a loved one can be painful but knowing what to expect can make things much easier. A probate attorney can provide help with such legal responsibilities as court filings and timelines and can provide representation in court, if necessary. With years of experience in probate court, Nancy Eaton can answer any questions you may have. She would be happy to meet with you for a consultation.