What is a “trust”?Ī trust is a legal relationship by which one person or entity holds title to property for the benefit of another person or entity. In most trust relationships, the terms of the trust are set out in a written document called a trust instrument. Trusts are set up for many purposes. Except for testamentary trusts, most trust instruments are not filed with a court. If the decedent has none of these relatives, assets generally are distributed to family members in the following order of priority: 1) parents 2) siblings and the children, grandchildren, etc., of deceased siblings 3) grandparents 4) aunts and uncles and, if deceased, their descendants. If the person has children, grandchildren, great-grandchildren, etc., but no spouse, the property is divided among the children or descendants of deceased children. When a person dies without a will, the property may be divided between the surviving spouse and children (or spouse and parents if there are no children) depending on the value and type of property. Most people who write a will leave their property to their immediate family, so intestacy law generally distributes property in the same way. The law of intestacy provides the rules for distributing property belonging to people who die without a valid will. Land and houses generally are not administered through the probate estate unless the will provides otherwise or the sale of these assets is needed to pay estate debts.Such property may include life insurance policies, retirement accounts, joint bank accounts, and annuities. ![]() ![]() Property that is held with a “right of survivorship,” meaning that it becomes the property of the last owner living, or property that has a named beneficiary who is living.Assets that are handled through the estate administration process are called “probate assets.” “Non-probate assets” that may pass outside the process, may include: What types of property pass through the estate administration process?Īssets including vehicles, bank accounts, stocks and bonds, furniture, and jewelry are typically, but not always, handled through the estate administration process. In full administration, the clerk of superior court gives authority to a personal representative of the decedent who inventories the decedent’s assets, gives public notice to the decedent’s creditors, pays the valid debts of the decedent, and distributes the decedent’s remaining property to the person(s) who were named as beneficiaries in the decedent’s will, if there is one, or to the person(s) entitled by law if there is no will. Unless the decedent set up complete alternatives to court-supervised estate administration prior to death, estate administration is handled through the courts, primarily in the office of the appropriate clerk of superior court. Some estates are administered by “full administration.” Many small estates may be administered through simpler processes. What is “estate administration”?Įstate administration is a process for handling a person’s assets and debts after that person’s death. ![]() Probate is another word for estate administration, which is sometimes called “the probate process.” Probate or probating the will also refers to the process by which a court determines that a “purported” will is actually the final will and testament of the decedent and is legally valid to pass title to property. The term “probate” has two primary meanings. A will has no legal effect until it is probated by a court (usually the clerk of superior court). Some wills are not valid because they lack the legal requirements of a valid will. Wills are most commonly typed documents created by lawyers, but in some circumstances wills may be valid when handwritten (and in rare cases may be made through verbal directions). ![]() What is a “will” or a “last will and testament”?Ī “will” (also known as a “last will and testament”) is an instrument created during a person’s life that determines who inherits that person’s property after he or she dies. Estates may be small or large and may or may not include land. An “estate” is all of the money and other property owned by a person at death. What is a “decedent” and an “estate”?Ī “decedent” is a person who has died. However, in many situations, a representative for the deceased person must be appointed by court to collect the deceased person’s assets, pay the deceased person’s valid debts, and distribute the deceased person’s property to the proper persons. When someone dies, some or all of the deceased person’s property may transfer directly to others because of legal arrangements made by the deceased person before death. What happens to my loved one’s property and debts?
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