Estate administration is the legal process of managing and distributing the assets of a deceased person. Probate is related to this because it is the specific court-supervised part of estate administration. The probate court oversees this process, and the estate administration involves gathering the assets, paying the debts and taxes, and distributing the remaining assets to the selected beneficiaries. The estate is managed by someone else; they will be listed in the will, or the court will appoint one. If you are going through the process of estate administration in Missouri, keep reading to learn how to go about it and what it all entails.
Determining the Type of Estate
There are two types of estates in Missouri: a small estate and a full probate estate.
Small Estate Affidavit:
- The deceased person’s property is less than $40,000 in net assets.
- It is managed by a voluntary administrator to collect and distribute the assets to the beneficiaries.
Full Probate Estate
- The estate is valued at $40,000 or more.
- A personal representative can also include executors who collect and distribute the assets to the beneficiaries.
There are also such things as non-probate assets, which pass directly to the beneficiaries and don’t go through the probate process. That means the asset’s title was already transferred within the deceased’s lifetime. Before starting the process, it’s good to note which assets won’t have to go through the probate process.
Examples:
- Life insurance
- Retirement accounts
- 401K
- Vehicles
- Joint Bank Accounts
These examples may be non-probate assets because they have a “Transfer-on-Death” or “Payable-on-Death” designation, a named beneficiary, or a joint owner with survivorship rights.
Read More: Understanding Special Needs Trusts in Missouri Estate Planning
Was a Will Created?
The first step of probate would be figuring out if the deceased created a will. If a will was created, it needs to be tested for validity. If the deceased did not create a will or doesn’t have any other relevant documents within an estate plan, it becomes “intestate.” Intestate means that the deceased has not created a will, and Missouri’s intestate succession laws dictate who inherits based on family relationships. If you have any concerns about whether the will is valid, contact one of our lawyers. They will be able to help.
Filing for Probate Court
The next step would be determining who files for probate court. In most cases, the personal representative files for probate court if it’s needed. The court will then schedule a time and date for the hearing. The court’s approval grants official legal authority in the form of “Letters Testamentary” if there is a will or “Letters of Administration” if there is no will.
Taking Inventory of The Assets
After the personal representative is granted permission to continue, the next step would be identifying the belongings, assets, and property within the estate. This is a large role where the personal representative may have to gather necessary paperwork and look into the income tax returns. While this is happening, the personal representative must be protecting the assets and distributing them to the correct beneficiaries when that time comes.
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Paying the Remaining Debts and Expenses
After the date-of-death values are established, the personal representative must start appraising items to pay off any remaining expenses. Items the personal representative may appraise are jewelry, artwork, or any other collectibles they may come across. The personal representative must decide what needs to be done in order to pay off the deceased’s remaining expenses or outstanding taxes. Missouri has a six-month creditor claim period that begins after a notice is published in a newspaper
When do Beneficiaries Receive Assets?
The last stage of the probate process is when the beneficiaries receive their inheritance. Once the probate judge closes the estate, the personal representative can transfer the inheritance to the beneficiaries. If there’s a will, the personal representative follows those wishes. This process can take anywhere from 6 months to a year in Missouri.
If you had a loved one pass recently in Missouri, contact Mark Harford Law. They will be able to help you take the right steps when it comes to estate administration.