After a loss

Probate basics: what it is and when it's needed

The court process for settling an estate, and when families can skip it.

Probate is the court-supervised process of settling someone's estate after they die. It confirms who's in charge, pays debts and taxes, and transfers what's left to the people who should get it.

What usually happens in probate

1. Someone files the will, if there is one, with the local probate court.
2. The court appoints an executor (named in the will) or an administrator (if there's no will).
3. The executor finds and values the person's assets.
4. Creditors are notified and given a set time to make claims.
5. Debts, final bills and taxes are paid.
6. What's left is distributed, and the court closes the estate.

Simple probate cases often take several months to a year. Contested or complicated estates can take longer.

What usually skips probate

• Accounts with a named beneficiary, like life insurance, retirement accounts, and POD or TOD accounts
• Jointly owned property with right of survivorship
• Assets held in a living trust

Small estates

Most states have a simpler process for smaller estates, such as a small-estate affidavit or summary probate. The dollar limits and rules vary widely by state.