Losing a loved one is a devastating experience. Not only will you navigate the grief of their loss, but you will need to navigate the complexities of dividing their assets as outlined in their estate plan. However, some estate settlements will need to proceed through the probate process. Answering the question how much does an estate have to be worth in California to go to probate can not only make the process easier, but also help you navigate what may be a difficult road ahead.
The value of the estate is the determining factor in whether the estate will be settled in probate or not. With the help of an Orange County estate planning lawyer from the Law Office of Christopher P. Walker, P.C., you can feel empowered to face the challenges of probate while still allowing yourself to grieve the loss of your loved one.
Understanding Probate
When a person passes, they often leave an estate plan that is most often in the form of a will. Probate is the process by which the assets outlined in the will are formally distributed to beneficiaries. In the probate process, the will must be determined to be valid and proven to have originated from the decedent. If these are true, then the contents of the will are then executed according to the document and the law.
If the will is determined to be invalid, the probate process will then act on behalf of the deceased and determine by the bounds of the law how the assets they leave behind are to be distributed.
The probate judge will name an executor of the estate who is responsible for clearing the debts to creditors and making decisions on behalf of the estate. Ultimately, they will ensure the beneficiaries, either named in the will or by law, are granted the assets they are owed.
Whether there is a will or not, probate will need to verify the distribution of assets after the debts remaining to the deceased are fulfilled. Before the assets can be distributed, creditors will be provided with the payments they are owed under the bounds of the law.
Not every estate is required to go through the probate process, however. Estates that are valued under $166,250 can qualify for a simplified process of estate transfer. Estates that are valued higher will need to enter into the probate process unless other means are put into place. This process takes time to complete and often ties up the estate for nine months or more.
The Probate Process
If the estate of your deceased loved one must go to probate, knowing the process can help you prepare and avoid complications along the way. Working with a probate attorney, you will prepare to do the following:
- Have possession of the will and certificate of death. Filing for probate must first start by filing evidence that your loved one is indeed deceased and, if a will exists, that their wishes are identified. Often, the will is located in the possession of an attorney who helped to prepare the will.
- File a petition for probate. The petition must be filed in the county in which your loved one passed. In this petition, the executor of the estate may be named and given the authority to oversee the estate.
- Identify assets. Inventorying the will must take place. All assets must be accounted for, with few exceptions. This is the point at which the value of the estate is verified and compared to the $166,250 threshold.
- Resolve debts. Creditors must be paid out of the assets of the estate prior to any distribution to beneficiaries. The executor is responsible for overseeing these payments.
- Asset distribution. After all the debts have been settled from the estate, the remaining assets are then distributed according to the terms of the will or the law as determined through probate.
While probate cannot bring your loved one back, it can help you honor their wishes and help divide their assets as symbols of their memories to you and your family.
FAQs
Q: What Is the Minimum Estate Value for Probate in California?
A: The minimum value of an estate for probate will vary by state. However, in California, estates valued at more than $166,250 must enter into the probate process. While estates valued at less than that could still be subject to probate, they are able to use a more simplified transfer process of the estate. If you have questions about your loved one’s estate, speak with your attorney, who can help you understand if probate is necessary.
Q: Is Probate Required for a Small Estate in California?
A: Small estates in California are not necessarily subject to probate. While the value of the estate is the first determination of whether probate is required or not, another determination comes from whether your loved one left a clear estate plan or not. In some cases, probate may be necessary for those estates that do not have a will. An attorney can evaluate your situation and recommend what route you may need to take.
Q: What Assets Avoid Probate in California?
A: Avoiding probate in California starts by determining the value of the assets of the estate. However, not all assets are required to be a part of that calculation. In California, the law allows some assets to be excluded from total assets. This includes life insurance proceeds, retirement accounts, pensions, annuities, bank accounts, and any property that is in a living trust. These are a few examples of assets that do not have to be included in probate calculations.
Q: How Much Is Exempt From Probate in California?
A: An exemption from probate in California is not limited to individual asset amounts. To avoid probate, the total for the calculable assets must be below $166,250. If the total assets are greater than this number, then the estate must go through the probate process. There are only a few exemptions that are taken out of the calculation and do not count towards the total assets.
Orange County Estate Planning Lawyer
Grieving the loss of a loved one is difficult and can leave you with many questions. Whether you need answers about dividing their assets or are facing the probate process, contact the Law Office of Christopher P. Walker, P.C. Our team has knowledge and experience that can help you remember your loved one while ensuring their wishes are appropriately met.