Estate Planning - Probate and Executrix

Probate is the process by which your will is proved to be valid. The named executrix must present the will in court before being allowed to carry out the deceased's wishes as stated in the will. Probate validates the will, approves inventories, determines the value of property, pays creditors, and distributes assets.

State laws govern the probate process, and each state has a different set of laws. The proceedings take place in the probate court of the country where the deceased person resided. The process can take a few weeks to many months, depending on the complexity of the estate. Charges incurred in probate are generally regulated by state law and can be based on the value of the estate. The fees may include court costs, appraisers' fees, the executrix's fees, CPA fees, and attorney's fees.

The probate court will appoint someone to administer your estate. In most cases, the court will name the person you have chosen as executrix in your will. The executrix supervises the cataloging, the appraisal, and the distribution of your assets. She is charged with managing the estate until it is settled, arranging for your family's immediate needs, and preserving any business interests you may have. Some of the obligations of the executrix are to ....

• Handle funeral and burial arrangements.

• Probate your will.

• Collect and take an inventory of your assets.

• Collect all your financial records.

• Collect and pay your debts.

• Distribute your assets.

• File final federal and state income tax returns for the year in which you died.

• File estate tax returns, even if there is no tax due.

So who should be your executrix? It can be a thankless job, especially if the beneficiaries create problems. A candidate could be a child (name only one), your spouse, friends, siblings, or professionals such as attorneys and bank and trust companies.

Those closets to you may have the advantage of knowing and understanding your final wishes, but they may be at a disadvantage in dealing with beneficiaries. This may be especially true if you choose one child over the others. A professional may be helpful if you have a complicated estate or a business you would like to continue. Or you can choose a family member as the executrix and have her look to your attorney for guidance and to file all the proper paperwork. Many attorneys will charge and hourly fee for this service. Executrixes are allowed to charge a fee for their services as well.

You should keep in mind that it is difficult to settle an estate long distance. If you name a child who lives for away, he of she will have to travel or hire someone locally to help. Also, it will be the child who lived near you who will do all the running around for the estate. Make sure you give whoever will have the responsibility the authority.