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The California Probate Code provides for Attorneys fees and the fees of
the Executor/Administrator of the Estate, the amount of which is based
upon the value of the Estate assets. However these fees are not paid until
the Probate proceedings are closed, are paid out of the Estate assets, and
these fees must be approved by the Court prior to being received.
The length of Probate proceedings range from a minimum of approximately
8 months to a maximum of several years. Most Probate proceedings can be
closed out within the 8-10 month time frame if there are no legal disputes
among the persons inheriting from the Estate or with Creditors of the
Decedent concerning the amount of money the Creditor is entitled to be
paid.
The purpose of Probate proceedings is for the Court to make sure that
all Creditors of the Decedent are paid what is owed them prior to the
Heirs of the Estate receiving their inheritance, and ensuring that the
proper Heirs do in fact receive their inheritance.
At the time of filing the initial papers in the Probate proceeding, the
Attorney arranges to have notice of the death of Decedent published in a
local newspaper where the Decedent died, as required by law. The purpose
of this is to attempt to notify any Creditors of the Decedents death so
the Creditors can file a Claim with the Probate Estate in order to get
paid. All known Creditors of the Decedent must be personally notified by
the Executor of the Estate. Creditors generally have four monthsafter
authorization has been given to the Executor to perform his/her duties
(Letters Testamentary) in which to file a Claim against the Estate. If a
Creditor does not file a Claim within the four month period, he loses his
rights forever to receive payment (there are some exceptions).
If there is Real Estate in the Estate the property may or may not have
to be sold depending upon the provisions of the Decedents Will or the
desires of the Heirs to this property. There must however be enough cash
or liquid assets in the Estate to pay for the various expenses of the
Estate, including the Attorneys and Executors compensation which must be
paid at the very end of the Probate proceedings. If the Executor of the
Estate is a relative and wishes to waive any right to receive
compensation,this is permissible.
If Title to Real Estate and other assets such as Securities or Bank
accounts (in excess of $100,000) are in the name of the Decedent only at
the time of death, the only possible way for the Heirs to receive Title to
these assets is through the Probate process.
The duties of the Executor/Administrator are many. He must take
possession of all the Estate property so far as practicable, collect all
dividends, interest and other income, keep a detailed account of all
receipts and disbursements for the Estate, pay all expenses of the Estate,
file all tax returns (which may include individual tax returns, Probate
income tax returns, and Federal Estate Tax return) and pay all taxes, and
keep the Estate property adequately insured. Other duties may include
selling or borrowing against Estate property, settling disputed Claims of
Creditors, and managing and preserving the Estate property. All Estate
funds will be placed in a special Probate Estate Bank account in which the
Executor will have access. Careful record keeping by the Executor is
essential,because before the Probate proceedings may be closed, the
Executor will have to report to the Court and account for all monies and
assets that he has received, all expenses that were paid, and what net
property on hand remains at the closing of the Probate Estate.
OTHER PROBATE MATTERS. CONCLUSION . |