Probate Secrets
 What is the purpose of probate?
 Non-probate Transfer
 The Probate Process Road Map from A to Z.
 When Can I take a Probate Listing?
 Which CAR forms are available for probate real estate transactions?
What is the purpose of Probate?
A probate serves many purposes; such as gathering and safeguarding the decedent’s assets,
paying debt to all legitimate creditors and distributing the assets to the appropriate heirs. Probate
is a court sanctioned process for transferring property of the deceased to the living heirs. To
explain it in a real estate fashion, you know that the owner needs to sign the deed on the house to
transfer it to the buyer. However, if the owner is deceased, then the court needs to appoint a
personal representative (who is either an executor, who was named in the will or an
administrator, if there is no will) to sign the deed to transfer the house to the buyer, all of which
must be overseen by the court.
Non-probate Transfer
What do you do when you have a long-time real estate client who walks in your office and tells
you that her parent passed away and she needs you to list and sell her parent’s house? Does she
need to open a probate before you can sell the house? The answer will depend on how title was
held.
 Is the property held in joint tenancy or community property with right of survivorship? If
yes, probate is unnecessary for that asset. Joint tenancy and community property with
right of survivorship, including bank accounts, securities, real property, automobile, boats
and mobile homes can be transferred to the surviving tenant upon presentation of a
certified death certificate.
 Does the property have a beneficiary designation? If yes, probate is unnecessary for that
asset. Property passing by contractual beneficiary designation, such as life insurance,
retirement plans, IRAs, and annuities, can be collected by the named beneficiary upon
presentation of a certified death certificate.
 Bank deposit Totten trusts, pay-on-death (POD) account, and transfer on death (TOD)
investment accounts can be collected by the named beneficiary upon presentation of a
certified death certificate and typically each institution will have forms they want the
beneficiary to fill out and sign.
 Is the property in a trust? If yes, probate is unnecessary for that asset.
 Does the aggregate value of the decedent’s property exceed $150,000? If yes, probate is
necessary. Assets mentioned above do not count toward the $150,000. But if no, then
small estate summary procedures may be utilized: an abbreviated probate for real estate.
Probate big picture summary:
 Filing to get Personal Representation appointed
 Collection of assets
 Inventory and appraisal
o After the inventory and appraisal when realtors can complete the transaction
 Payment of creditors, debts, and taxes
 Distribution of the estate
 What is the purpose of probate?
 Non-probate Transfer
 The Probate Process Road Map from A to Z.
 When Can I take a Probate Listing?
 Which CAR forms are available for probate real estate transactions?
What is the purpose of Probate?
A probate serves many purposes; such as gathering and safeguarding the decedent’s assets,
paying debt to all legitimate creditors and distributing the assets to the appropriate heirs. Probate
is a court sanctioned process for transferring property of the deceased to the living heirs. To
explain it in a real estate fashion, you know that the owner needs to sign the deed on the house to
transfer it to the buyer. However, if the owner is deceased, then the court needs to appoint a
personal representative (who is either an executor, who was named in the will or an
administrator, if there is no will) to sign the deed to transfer the house to the buyer, all of which
must be overseen by the court.
Non-probate Transfer
What do you do when you have a long-time real estate client who walks in your office and tells
you that her parent passed away and she needs you to list and sell her parent’s house? Does she
need to open a probate before you can sell the house? The answer will depend on how title was
held.
 Is the property held in joint tenancy or community property with right of survivorship? If
yes, probate is unnecessary for that asset. Joint tenancy and community property with
right of survivorship, including bank accounts, securities, real property, automobile, boats
and mobile homes can be transferred to the surviving tenant upon presentation of a
certified death certificate.
 Does the property have a beneficiary designation? If yes, probate is unnecessary for that
asset. Property passing by contractual beneficiary designation, such as life insurance,
retirement plans, IRAs, and annuities, can be collected by the named beneficiary upon
presentation of a certified death certificate.
 Bank deposit Totten trusts, pay-on-death (POD) account, and transfer on death (TOD)
investment accounts can be collected by the named beneficiary upon presentation of a
certified death certificate and typically each institution will have forms they want the
beneficiary to fill out and sign.
 Is the property in a trust? If yes, probate is unnecessary for that asset.
 Does the aggregate value of the decedent’s property exceed $150,000? If yes, probate is
necessary. Assets mentioned above do not count toward the $150,000. But if no, then
small estate summary procedures may be utilized: an abbreviated probate for real estate.
Probate big picture summary:
 Filing to get Personal Representation appointed
 Collection of assets
 Inventory and appraisal
o After the inventory and appraisal when realtors can complete the transaction
 Payment of creditors, debts, and taxes
 Distribution of the estate



What is the purpose of Probate?


A probate serves many purposes; such as gathering and safeguarding the decedent’s assets, paying debt to all legitimate creditors and distributing the assets to the appropriate heirs. Probate is a court sanctioned process for transferring property of the deceased to the living heirs. To explain it in a real estate fashion, you know that the owner needs to sign the deed on the house to transfer it to the buyer. However, if the owner is deceased, then the court needs to appoint a personal representative (who is either an executor, who was named in the will or an administrator, if there is no will) to sign the deed to transfer the house to the buyer, all of which must be overseen by the court.



Non-probate Transfer


What do you do when you have a long-time real estate client who walks in your office and tells you that her parent passed away and she needs you to list and sell her parent’s house? Does she need to open a probate before you can sell the house? The answer will depend on how title was held.



Is the property held in joint tenancy or community property with right of survivorship? 


If yes, probate is unnecessary for that asset. Joint tenancy and community property with right of survivorship, including bank accounts, securities, real property, automobile, boats and mobile homes can be transferred to the surviving tenant upon presentation of a certified death certificate.



Does the property have a beneficiary designation? 


If yes, probate is unnecessary for that asset. Property passing by contractual beneficiary designation, such as life insurance,

retirement plans, IRAs, and annuities, can be collected by the named beneficiary upon presentation of a certified death certificate.



Totten Trusts, PODs, & TOD


Bank deposit Totten trusts, pay-on-death (POD) account, and transfer on death (TOD) investment accounts can be collected by the named beneficiary upon presentation of a certified death certificate and typically each institution will have forms they want the beneficiary to fill out and sign.



Is the property in a trust? 


If yes, probate is unnecessary for that asset.



Does the aggregate value of the decedent’s property exceed $150,000? 


If yes, probate is necessary. Assets mentioned above do not count toward the $150,000. But if no, then small estate summary procedures may be utilized: an abbreviated probate for real estate.



Probate big picture summary:


- Filing to get Personal Representation appointed

- Collection of assets

- Inventory and appraisal

  • o After the inventory and appraisal when realtors can complete the transaction

- Payment of creditors, debts, and taxes

- Distribution of the estate