Understanding Estates, Wills, and Probate

From First Steps

People often don't know where to start when it comes to understanding an estate, a will, and the probate process. This post will familiarize you with these terms. There is an entire subspecialty within the law known as Estate and Probate law dedicated exclusively to the process of creating estate plans and distributing assets upon death. This post is not a substitute for seeking qualified legal counsel for your situation, rather it is simply a road map to help you get the process started. It is also important to note that Estate Law is different in each state. Therefore, it is recommended that you seek information about the statutes in your state.

What is an estate?

An estate includes all the assets of the deceased, such as real estate, personal property, accounts, investments, automobiles, etc.

What is a will?

A will is a legal declaration authored by a living person that states how they want their assets distributed upon death.

What is probate?

The word "probate" is commonly used to refer to the administration of a deceased person's estate. After death, an estate is either viewed "testate" or "intestate."

· Testate: A person has died with a valid will and therefore the assets of the estate are distributed in accordance with the will.
· Intestate: A person has died without a valid will and therefore the assets are distributed in accordance with the provisions of state law, or intestate succession.

You can learn more about the many things that need to be done from a financial perspective when a loved one passes away through the online course First Steps: A Comprehensive Guide to Financial Matters After A Death