Law Days and Lattes: Episode 7 - Navigating Probate
Host: Sidney Wheelan
Topic: Probate Process in Missouri
Introduction:
- Explains the importance of avoiding probate if possible.
- Discusses what to do if there is no estate planning and probate is necessary.
What is Probate?
- Court-supervised process of transferring legal ownership of a deceased person's property (decedent) to their heirs or beneficiaries.
- Ensures creditors are paid and property is distributed correctly.
Key Terms:
- Claim: Debt owed by the decedent at death (medical bills, credit cards, etc.)
- Claimant: Creditor who files a claim against the estate.
- Devisee: Person named in a will to receive specific property.
- Distributee: Person entitled to receive a share of the estate through probate.
- Heir: Person entitled to inherit property if the decedent died without a will (intestate).
- Letters of Administration: Court order appointing a personal representative for an intestate estate.
- Letters Testamentary: Court order appointing a personal representative for a testator's (person who wrote a will) estate.
- Personal Representative: Person appointed by the court to manage the decedent's estate (executor or administrator).
- Probate Estate: Real and personal property owned by the decedent that goes through probate.
- Publication: Notice published in a newspaper about the probate process.
- Testate: Having a will.
Is Probate Necessary?
- Yes, unless the decedent has no probate assets.
Avoiding Probate:
- Giving property away while alive
- Living trusts
- Joint accounts with right of survivorship
- Pay-on-death (POD) or transfer-on-death (TOD) designations
- Life insurance or retirement account beneficiaries
How Does Probate Work?
- Personal representative manages the estate during administration.
- Debts, claims, and expenses are paid.
- Remaining assets are distributed to heirs or beneficiaries according to the will or Missouri law (intestacy).
- Minimum time to close an estate is approximately six months and ten days.
Rights of Creditors and Collection of Debts:
- Probate court oversees claims submitted by creditors.
- Personal representative collects debts owed to the decedent.
- Claims are paid before distributions to heirs or beneficiaries.
Taxes Payable After Death:
- Federal and state taxes may need to be paid before closing the estate.
Expenses of Probate:
- Bond premiums
- Publication costs
- Court costs
- Personal representative and attorney fees
Establishing Title to Real Estate:
- Probate clarifies ownership of real estate owned by the decedent.
- Heirs or devisees may need court approval to sell the property.
Rights of a Surviving Spouse in Missouri (Intestate):
- Receives one-half of the estate.
- If children exist, spouse receives the first $20,000 and then half of the remaining assets.
- Entitled to certain exempt property and allowances.
Rights of a Surviving Spouse with a Will:
- May elect to receive a statutory share instead of what's stated in the will.
- Cannot be completely...
