Are you or a loved one named as a Personal Representative (PR) in a Will? Would you like to know more about what is expected of you once you are appointed as a PR of your loved one's estate? If your answer is "yes," then please read on.
Normally, if a person passes away with a Will, then a probate is required to settle the estate. The probate process begins when the named PR in the Will is appointed by the Court as the PR. It is important to remember that simply being named in a Will as Personal Representative does not mean you are actually the PR, at least not until the Court says you are.
Here is a general summary about the probate process and what can be expected of an individual who is appointed as PR.
Step 1: The individual named in the Will to be appointed as PR would meet with an attorney. During this meeting, the named PR will engage the attorney's assistance in starting a probate.
Step 2: The attorney's office would prepare the initial paperwork required to start a probate (i.e. the Petition and Order to the Court, the Oath, the Affidavit, etc.). This step can take up to three weeks from hiring an attorney. It can take more time if additional information is required, such as contacting witnesses or getting consent forms from other beneficiaries.
Step 3: The named PR would come back to the attorney's office to sign the initial probate paperwork.
Step 4: The attorney will then file the paperwork with the Court. The Court will take as much time as it wants. The attorney has no control over the Court's calendar or schedule. Typically it takes at least two weeks from the time the paperwork is submitted to the Court for the attorney to receive the signed order to appoint a PR and the Letters Testamentary. However, if the Court has further questions for the attorney or requires a personal appearance, or if a bond is required, then it will take longer to receive the Letters.
Step 5: Letters will be available for the Personal Representative to pick up at the attorney's office, or if more convenient, the Letters can be mailed to the Personal Representative.
Step 6: Once the attorney receives the Letters back from the Court, the attorney's office will prepare additional paperwork, such as obtaining the estate's tax id number ("EIN"), sending the Notice to Creditors, and notifying the beneficiaries and heirs of the appointment.
Step 7: Once the Personal Representative has received the Letters Testamentary, he or she can now discover, preserve, and protect assets. This would entail opening an estate account and ensuring that certain payments are continued to be made (i.e. mortgage, basic utilities, insurance, etc.). He or she will be able to discover the decedent's creditors, and the information obtained during this period will be used to prepare a document called Inventory and Appraisement. This document may later be filed with the Court.
Step 8: The Notice to Creditors Period will commence. This four-month period is for creditors to make a claim against the estate begins upon publication of the notice for unknown creditors and 30 days' notice for known creditors. While creditors are required to send a copy of the Creditor Claim to either the attorney or the Personal Representative, there is the occasional creditor who does not comply with this rule. The attorney will check the Court file approximately two weeks after the end of the creditor claims period. This two-week window is to give the Court clerks time to file any paperwork submitted to the Court.
Step 9: If needed, the PR will work with a Certified Public Accountant to file the estate tax return (i.e. Washington and Federal), the estate income tax return, as well as the decedent's final personal income tax return.
Step 10: The PR should prepare to distribute assets (i.e. selling or transferring, as needed) to the beneficiaries, as well as paying the allowed creditors (i.e. the creditors that made a valid and timely claim).
Step 11: When the PR is ready to close the probate, the attorney's office will prepare the documents needed to close the probate (i.e. Declaration of Completion, Receipts for Beneficiaries, etc.). At this step of the process, the PR should be ready to give an accounting to all beneficiaries, distribute the assets, complete the tax returns, pay all administrative costs, pay all creditors, and handle all other assets and debts.
Steps 1 to 6 can take up to 3 months from the initial meeting with the attorney. Steps 7 to 9 can take up to 9 months from the initial meeting with the attorney. Steps 10 to 11 can take 9 months or more from the initial meeting with the attorney. Typically, the probate process ranges between 16 to 24 months from start to finish. If an estate tax return is being filed, then the probate should be kept open until the PR receives a clearance letter from the Department of Revenue (for Washington) and the IRS. The time it takes to receive a clearance letter ranges from 12 to 18 months from the time the return is submitted. There is a lot of time and work involved in settling an estate, but your trusted advisors will be able to walk you through the process.
If you have additional questions about the probate process or questions about how to avoid the probate process, please call Rehberg Law Group at (206) 246-8772.
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