What is Probate?
Probate is a process that varies from state to state that begins after a person passes away. It’s is the legal process that determines what your loved one owned and who’s legally entitled to it now. Make sure to consult a lawyer to understand the process in your state (some states don’t require probate if the estate is small). Here’s what I know about our probate process in Colorado:
When your loved one passes away, they leave behind assets (money, a car, a house, etc.). Hopefully that person had a will. If that person does have a will, probate is the process of making sure whatever is written in will is carried out lawfully. If the person does not have a will, the probate court will decide which assets belong to whom and how to distribute them lawfully.
The Executor does not decide what goes to whom. They don’t have that power. They are strictly responsible for doing whatever the will says, and they aren’t allowed to deviate from whatever is indicated there.
NOTE: Any account with a designated beneficiary does not have to go through probate. You can indicate a beneficiary (someone to inherit your money) on bank accounts, investment accounts, and your home. If the person didn’t do that, those assets have to go through probate.
Step 1. Contact a lawyer and ask them to apply for paperwork that names you the official executor. This is your “personal representative paperwork.” It means you are the person in charge of making decisions on behalf of the estate. They will ask for a copy of the will that names you as the Executor. You’ll need “personal representative paperwork” for many reasons, and you can’t open probate without it.
Step 2. When your “personal representative paperwork” comes through, your lawyer can request to open probate. This can be done without a lawyer, but this isn’t a good place to cut corners. If you do it wrong, it can create major complications, and it’s relatively inexpensive to have a lawyer file it for you.
*Lawyers charge hefty hourly rates, but if they only work on your request for 10 minutes, they’ll only charge you for 10 minutes.
Step 3. Start keeping track of any money you spend that belongs to the estate. Once the executor opens an estate account, that person can write checks or use an estate debit card to pay for things like funeral expenses or lawyer costs.
*See what is an “estate account.”
Until the estate is closed, that money isn’t yours, and you can’t spend it freely. You can only spend it on items related to the estate, and you may need to prove to the probate court that you did that. Make sure you make note of any money that comes out of the account.
Step 4. You will need to create a list of assets. If you’re working with a lawyer they will give you paperwork to complete. Regardless, it’s a good idea to start a spreadsheet as soon as possible, so you can keep track everything. Make a spreadsheet and start entering anything valuable into it. That includes cars, boats, ATVs, trailers, stocks, bonds, bank accounts, etc. It’s going to take a long time to track down all of this information, so start early and get organized.