We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byEdgardo Simmons
Modified over 2 years ago
© 2007 ME™ (Your Money Education Resource™) Estate Planning for Financial Planners Chapter 4: The Probate Process
2 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Definition The legal proceeding that serves to: prove the validity of existing wills supervise the orderly distribution of decedent’s assets to heirs protect creditors by insuring that valid debts of the estate are paid.
3 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Testate vs. Intestate Testate – Dying with a valid will. Intestate – Dying without a valid will. Legatee – Person who inherits under the will. Heir – Person who inherits under intestacy laws.
4 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Advantages of Probate Protect the decedent Fulfill the decedent’s wishes. Protect the legatees and the heirs Orderly administration to prevent one heir from taking priority over the other. Clean title to heirs. Requires notice so descendents can claim their share. Protect the creditors Makes sure debts are paid.
5 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Disadvantages of Probate Complex and takes time Generally takes 6-24 months. Monetary expenses Court costs – 5 to 10% (some up to 20%) Ancillary probate Loss of privacy Court proceeding open to public scrutiny.
6 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Nontraditional Relationships (3 of 3) Avoid probate!!! Family more likely to contest will Jeweler Anna Nicole Other means of transferring to the non- traditional partner: Lifetime gifts. Named beneficiary. Titling. Trusts.
7 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Probate Process (1 of 4) Varies by state General Process Someone produces the will. Takes the will to probate court (usually the domicile of the decedent). Petitions to open the estate.
8 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Probate Process (2 of 4) Appointment of executor (testate) or administrator (intestate). Letters testamentary (for executors) or letters administration (for administrators) are issued. Surety bonds may have to be posted. Decedent can waive it in the will for executor. Waiver is generally valid unless out-of-state executor. Administrators generally required by state law to post bond. Premium:.5% - 1% of bond
9 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Executor Estate’s personal representative appointed Personal representative (executor or administrator) will manage and distribute the estate Hearings after notice to interested parties Notice of Petition to Administer Estate Published in local paper: in Illinois: three consecutive weeks
10 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Executor Executor files probate petition within 30 days after nomination Identify all beneficiaries and heirs at law Notify within 14 days of will probate and right to contest will within 6 months In Illinois, notify all who would be intestate heir Bond: unless waived in will, equal to value of personal assets and one year’s income
11 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Probate Process (3 of 4) Accountings to the court Executor files inventory of estate assets with court (in Illinois, within 60 days of appointment) Public document Also file annual accounting of income and expenses Pay debts and costs. From what assets?
12 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Probate Process (4 of 4) Manage and distribute estate. Distribute specific bequests. What if the asset no longer exists? Ademption – extinction of right Distribute remaining assets. What if there are not enough assets to satisfy all bequests? Abatement - reduction
13 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 Probate administration Creditors can file claims against estate All known creditors must receive notice Claims barred after 6 months of publications of notice or 3 months of mailing, whichever later Distribution of assets Can make preliminary distribution Must be < 50% of estate Final distribution: after 6 month claim period Final estate accounting Fees average 5 – 10% of estate value Probate attorney Executor
14 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 What Passes through Probate? Fee Simple Property Tenancy in Common Property Community Property Invalid beneficiary designations
15 © 2007 ME™ (Your Money Education Resource™) Updated on 12/12/06 What Passes Outside Probate? State contract law Life insurance Annuities IRAs, SEPs, SIMPLEs, & qualified plans Spouse presumed beneficiary of qualified plan unless consented to someone else Pay-on-Death (bank accounts) & Transfer-on-Death accounts (investment accounts) State titling State trust law
The Probate Process. Probate – the legal process through which a decedent’s assets, that are not automatically transferred at death to their “rightful”
Chapter 11 Estate Administration. Wills, Trusts, and Estates Administration, 3e Herskowitz 2 © 2011, 2007, 2001 Pearson Higher Education, Upper Saddle.
Chapter 9 Administration of the Estate. Initial Responsibilities Arrangements for the Funeral Notifying Relatives and Close Friends Protect and Preserve.
© 2004 West Legal Studies in Business A Division of Thomson Learning 1 Chapter 51 Wills, Trusts, and Elder Law Chapter 51 Wills, Trusts, and Elder Law.
© 2003 The McGraw-Hill Companies, Inc., All Rights Reserved Chapter 15 Estates And Trusts.
Josh Copeland Carlson & Copeland, PLLC September 20, 2011.
Prof. Gerry W. Beyer Fall 1. Title Transfer Alternatives to Probate ▪ Determination of heirship, if intestate. ▪ Probate will as muniment of.
RETIREMENT AND ESTATE PLANNING Chapter 15. Defining Your Retirement Needs How much income do you need? Keep the house or move? What type of investment.
Estate Planning February 2016 Douglas A. Mielock Foster, Swift, Collins & Smith, P.C. Lansing, Michigan.
WILLS AND INHERITANCE.
Managing for Today and Tomorrow Business, Succession, Retirement and Estate Planning for Farm and Ranch Women Methods of Asset Transfer Sale Gift Estate.
Objective 9 Be aware of the basic documents used in Estate Planning 9
Estate Planning Intestate Succession Intestate Succession Wills Wills Trusts Trusts Class 9.
The Importance of Having a Will. Objectives Why is a will important Understanding the terms: –Beneficiary –Probate –Executor –Guardianship Pros and Cons.
11-1©2005 Pearson Education Canada Inc. Chapter 11 Wills: Planning for the Distribution of Assets Wills provide for an orderly procedure for changing the.
COPYRIGHT © 2008 by Nelson, a division of Thomson Canada Ltd Chapter 13 – Preserving Your Estate.
© 2013 Pearson Education, Inc. All rights reserved.17-1 Chapter 17 Estate Planning: Saving Your Heirs Money and Headaches.
Chapter Nineteen Accounting for Estates and Trusts Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without.
Estate Planning WILLS, TRUSTS, HEALTH CARE PROXIES AND ADVANCE DIRECTIVES BALANCING LIFE’S ISSUES, INC.
People’s Law School A simple overview of estate planning Roberta P. Clark Attorney at Law Fallbrook, California (760) Web page:
Probate and Estate Administration Chapter 9. Probate or Estate Administration Probate –The act or process of proving the validity of a will Estate Administration.
Wills Chapter 8 Tools & Techniques of Estate Planning Copyright 2011, The National Underwriter Company1 What Is a Will? Legal document Provide for disposition.
Chapter 10 The Personal Representative. Wills, Trusts, and Estates Administration, 3e Herskowitz 2 © 2011, 2007, 2001 Pearson Higher Education, Upper.
© The McGraw-Hill Companies, Inc., All Rights Reserved. Irwin/McGraw-Hill 19-1 C HAPTER 19 Personal Finance Estate Planning Kapoor Dlabay Hughes.
26-1 Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
Wills and Trusts. Estate Planning Estate Planning and Probate involves planning for the distribution of property after death and the mechanics of how.
PART 5: LIFE CYCLE ISSUES Chapter 17 Estate Planning: Saving Your Heirs Money and Headaches.
Wills, Trusts and Estates Chapter 14. Terminology Decedent – the one who dies Heirs – the persons who take property from the decedent when the decedent.
Chapter © 2010 South-Western, Cengage Learning Retirement and Estate Planning Planning for Retirement Saving for Retirement 15.
BB30 Business Law 5.02 Summer 2013 Business Law
The Federal Gift and Estate Tax And Financial Planning Terminology Outline of the Federal Estate and Gift Tax Sample Problem Life Insurance and.
William T. Catterton, P.C. Attorney at Law Law Offices of William T. Catterton Wells Fargo Bank Building 6707 Brentwood Stair Road Suite 210 Fort Worth,
Life, Estate & Inheritance Planning – God’s Way. What Is “Estate Planning”? A Process that Allows You to: Control Your Property While You’re Alive and.
Chapter 20 Estates and Trusts: Their Nature and the Accountant’s Role.
© 2007 ME™ (Your Money Education Resource™) Estate Planning for Financial Planners Chapter 1: Introduction to Estate Planning.
2004 McGraw-Hill Ryerson Ltd. Kapoor Dlabay Hughes Ahmad Prepared by Cyndi Hornby, Fanshawe College Chapter 15 Estate Planning 15-1.
Estate Administration Fillmore Riley LLP Anita L. Southall.
Estate Planning. Estate planning n Goals and objectives n Reviewing current plan n Passing property at death n Probate n Estate taxes (federal, state)
Life, Estate & Inheritance Planning – If you don’t have a plan for your estate, The State Does! Presented by Arthur J. Pauly, Jr. J.D. Esq
Don’t Get Buried in the Paperwork Joan Koonce, Ph.D., AFC ® Professor and Extension Financial Planning Specialist.
Estate Planning Wills Wills Trusts Trusts Insurance Insurance Class 8.
Estate Planning The Legal and Tax Aspects of “Finishing Strong” As Presented By: David K. Whitlock, Esq. Law Office of David K. Whitlock E. 80 Route 4.
Life for those after death.. A legal written instructions for the distribution of property and possessions after death. ◦ For any one with assets it.
© 2007 Prentice Hall, Business Law, sixth edition, Henry R. Cheeseman Chapter 52: Wills, Trusts, and Living Wills Chapter 52: Wills, Trusts, and.
Planning for Retirement Personal Finance Chapter 15.1.
Chapter 21.2: Estate Planning
Eileen St. Pierre, Ph.D., CFA, CFP® Personal Finance Specialist Oklahoma State University ESTATE PLANNING.
Wills & Probates Jairam Chandnani NOVEMBER 06, 2008 LEXIM ASSOCIATES.
© 2017 SlidePlayer.com Inc. All rights reserved.