C4 The Probate Process
What is the average time it takes to complete the probate process?
6 months to 2 years.
Eric owns the following property: Home sole ownership Stock in ABC Corp/ brother, Jim joint owner/ Tenancy in Common Beach House / Wife, Rebecca joint owner/ Tenancy by the Entirety Checking Account / none / Pay- on Death to Son Which of the following is included in Eric's probate estate? a. Home and stock in ABC Corp. b. Home, beach house, and checking account. c. Stock in ABC Corp and checking account. d. Home only.
A. The Pay on death account is appointed through contract to son, the beach house has a survivorship feature.
Parker lives in Florida and dies at age 71. He has the following assets:1. Home, tenancy by the entirety with his wife Penny, $345,000.2. Porsche, fee simple, $65,000.3. Furnishings, tenancy by the entirety with wife Penny, $45,000.4. IRA, Penny is beneficiary, $390,000.5. Checking account, fee simple POD to Penny, $350,000.6. Undeveloped commercial lot in Alabama, fee simple, $490,000.Which of Parker's assets have to be retitled through Florida probate? a. The Porsche. b. The home and the Porsche. c. The home, the Porsche, and the checking account. d. The home, the Porsche, and the Alabama property.
A. The Porsche. The rest skip through ownership or through contract. The Alabama property is not part of florida probate.
What is ademption?
Ademption occurs when an asset was bequeathed to an individual in a will, but no longer is an asset at the time of the decedents death.
What is abatement?
An abatement occurs when a decedent appoints an amount more than he currently has to legatees. The court would then have to re-calculate the leftover amounts to be given to legatees/heirs.
If Paula died with each of the following property interests, which will be excluded from her probate estate? a. Property owned as community property. b. Property held tenancy in common. c. Death proceeds of life insurance payable to a living stranger. d. Property owned solely. 2
C
Which of the following property interests of a decedent will avoid probate? a. Proceeds of life insurance payable to the decedent's estate. b. Community property. c. Property owned tenants in common with decedent's father. d. Proceeds of life insurance payable to the decedent's living son. 3
D
What are letters of admininstration?
Document issued by the court documenting the administrators capacity to act on behalf of the estate
What are Letters testamentary?
Document issued by the court documenting the executor's capacity to act on behalf of the estate
True / False All executors are chosen by the probate court.
False. Chosen by the will
The probate court provides an appointed administrator with certain powers represented by letters testamentary.
False. For an administrator this is represented by letters of administration.
True / False Property held "tenancy by the entirety" will pass through probate for retitling.
False. It won't pass through probate because it TE has a survivorship feature. The spouse will automatically be transferred the title.
What are examples of contracts that avoid the probate process?
IRA's SEP's Pay on death bank accounts Transfer on death investment accounts
What does a self-proving clause accomplish in a will?
It prevents the probate process from taking time to determine if the will is valid or not. With this clause it will automatically be considered valid.
What are examples of state titling laws that avoid the probate process?
JTWROS TE Deeds with named beneficiaries at death
Does life insurance always avoid probate?
No, it usually does, but if the decedent or his or her estate is the named beneficiary on the policy, the benefits from the policy will be subject to probate.
What is a surety bond?
Protects the heirs, legatees, and creditors in the even that the administrator/executor wrongfully uses the estate. The surety bond will reimburse the estate for the loss.
Is the probate process private or public?
Public
What types of ownership need to be retitled upon death through the probate process?
Sole Ownership Tenancy in common Community Property
What is the probate process?
The legal process through which the decedent's assets that are not automatically transferred to their heirs by contract or law are retitled in the name of the heirs.
What are some ways to avoid the probate process ?
Transfer by contract Transfer by ownership type (TE, JTWROS) Transfer by trusts
True / False If a partner of a nontraditional, unmarried couple wishes to pass assets to the surviving partner, he should plan to avoid probate.
True
True / False Life Insurance proceeds payable to the decedent pass through the probate process.
True
True / False The probate process is a legal proceeding that serves to prove the validity of any existing will, supervise the orderly distribution of the decedent's assets to the heirs, and protect creditors by ensuring that valid debts of the estate are piad.
True
True / False The probate process protects the decedents creditors by ensuring that the debts of the estate are paid prior to distributions to heirs.
True
True/False The probate process often requires the executor or administrator to advertise the upcoming probate for a statutory period of time in legal newspapers to give interested parties notice to enter into the process.
True
In the event a decedent dies without a valid will, the probate court appoints an administrator
True.
True / False Court-appointed administrators must generally post a bond.
True.
True / False Letters testamentary provide the holder with the legal authority to perform the functions of executor.
True.
True / False Probate is the legal process that performs the function of changing title to those properties that do not change title some other way.
True.
True / False A revocable living trust is a device that may be used to avoid the probate process.
True. It may accomplish this.
True / False A decedent's interest in property owned "joint tenancy with rights of survivorship" with his surviving brother will not pass through probate.
True. It will not pass through probate and will be included in gross estate depending on circumstances.
True / False A bank savings account with a listed pay-on-death beneficiary avoids the probate process
True. This is like a trust but really just a bank account with funds in it for a specific beneficiary.