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 In last week's issue of Retirement Watch Weekly I presented 10 Steps to Avoid the Probate Process. Since this can be a complicated process, I'll expand on those and explain the most commonly used probate forms.
Probate can be a long and expensive process in which an estate is settled and distributed to the next generation of owners. During probate the estate's administrator, who sometimes is called the executor or personal representative, prepares and files forms with the probate court.
The granting of probate is usually the first step. In that process, a probate court decides the legal validity of the will and formally grants approval to the executor to administer the estate.
Then, the executor identifies and prepares an inventory of the deceased person's property, has the property valued (and appraised if need be), pays debts and taxes, and distributes the remaining property according to the instructions of the last will and testament.
A List of the Most Commonly Used Probate Forms
There are different probate forms required for each stage of the probate process, and it is important for the executor, or administrator, of the estate to be familiar with which probate forms are needed, what they are used for, and how to file the probate forms.
The list below is separated into the three distinct stages of the probate process: preparing to petition for probate, administering the probate estate and distributing the probate estate.
Details vary from state to state. Your state might give a form a different name than listed here. But the basic steps and principles are the same in most states. A suggestion for all completed forms used is to have multiple copies available, as the original will be submitted to the probate court, but the executor should keep copies on hand.
Preparing to Petition for Probate
Petition to Probate
The Petition to Probate is an essential form used to start the probate process. All sections and questions, including any attachments needed, are required to be completed.
Most often, the original last will and testament, if available, must be attached. All interested persons of the estate should also receive copies of the Petition to Probate.
Notice of Petition to Administer Estate
The Notice of Petition to Administer Estate form is used to notify all interested persons that the estate is being probated, and it is also published in a local newspaper. This form is filed together with the Petition to Probate. It is important to also publish this form in the correct newspaper within the minimum required period prior to the first hearing.
Duties and Liabilities of a Personal Representative
This form gives a summary of the responsibilities and obligations of the person handling the estate. The personal representative will need to sign the form as an acknowledgement of these responsibilities to be formally appointed by the court.
Order of Probate
The Order of Probate form is used to appoint the executor or administrator of the estate. It usually is issued after the first hearing when the judge grants the Petition for Probate and officially appoints the executor or administrator.
Letters
This form is similar to an oath for the executor or administrator. The individual appointed must sign and file it prior to the hearing. It will be returned to the executor after the probate judge officially appoints the executor. The Letters form can be used as proof of the individual's authority to act on behalf of the estate.
Administering the Probate Estate
Notice of Hearing
The Notice of Hearing must be filed to request any hearing before the probate court. For every hearing during the probate process, this form is to be signed and filed with the court. Then, the probate court will issue approval for the requested hearing.
Inventory and Appraisal
This form is to be completed by the executor or administrator within four months of appointment (though the deadline varies from state to state). It should be the complete record of the initial inventory of the probate estate.
The form has two categories, property appraised by the executor or property professionally appraised by the probate referee. All probate estate assets will be sorted under these two categories and listed with complete identification, description and appraisal value.
Notice of Proposed Action
Associated with a potential probate sale, this form allows executors to sell or exchange property, sell the deceased's business, determine claims to property and transfer real property under the instructions of the last will and testament.
Although the official executor of the estate does have authority to perform actions without filing the Notice of Proposed Action, this form broadly widens the authority of the executor over actions regarding the estate. The form must be filed at least 15 days before the proposed sale date, and the executor must wait to take action on or after that date.
Notice of Administration to Creditors
One of the most important responsibilities of the executor is to contact creditors and settle the debts of the estate. This form is mailed to any creditors to notify them of the deceased's passing and allow them to file a claim on the estate for any money owed to them.
Creditor's Claim
This form is often sent together with the Notice of Administration to Creditors form. It must be sent to the creditor within 30 days after the executor obtains knowledge of the debt to the creditor.
The creditor will file this Creditor's Claim form with an itemized list of claims and dates for the debt owed by the estate.
Allowance or Rejection of Creditor's Claim
The executor needs to review the Creditor's Claim form and then complete and send this form as a response to the creditor. This form must then be filed to the probate court and the executor must pay any claims allowed before the distribution of the estate. | | | I just got back from Trump Tower... And based on what I saw there, I'm prepared to put my reputation on the line.
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Summary of Account/Final Accounting
The executor is required to file an accounting of all the financial transactions that have occurred in the administration of the estate in the Final Accounting form. All accountings filed with the court must include a financial statement and report of administration according to each state's specific guidelines.
Two schedules – the Schedule of Receipts and the Schedule of Disbursements – are required to be attached along with the Final Accounting form and filed with the probate court. This form is essential as the final step before closing and distributing the estate.
Petition for Final Distribution
This petition includes three parts: the Final Accounting form, a report of administrative actions taken by the executor, and the petition for the probate court to approve all matters of administering the estate.
This final form is a comprehensive layout of all matters during the administration of the estate. The executor can close and distribute the probate estate after the probate judge's approval of final distribution.
In an upcoming issue of Retirement Watch Weekly, I'll discuss the third and final part of my probate series, the uniform probate code. | | To a better retirement,
Bob Carlson
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 Robert C. Carlson is the author of the books The New Rules of Retirement and Retirement Tax Guide, editor and investment director of the popular retirement newsletter, Retirement Watch, and editor of the free weekly e-letter, Retirement Watch Weekly. Bob is a frequent speaker at investment conferences around the country, and you can also hear Bob as a featured guest on nationally-syndicated radio shows, such as The Retirement Hour, Dateline Washington, Family News in Focus, The Michael Reagan Show, Money Matters and The Stock Doctor. | | | | | |
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