Probate Administration: How Are Estates Settled after Death?

Probate begins with petition to admit the will (or determine intestacy) filed in the decedent's county of domicile within statutory windows. Will admission requires proof of due execution, testamentary capacity, and absence of fraud or undue influence at signing. Letters Testamentary (for named executors) or Letters of Administration (for intestate cases) grant fiduciary authority. Notice to heirs, beneficiaries, and known creditors must follow state-prescribed methods within deadlines. Strong estate administration and probate counsel handles petition drafting, witness affidavits, and court appearance.

Personal representative duties include inventory of assets, asset preservation, debt payment, tax compliance, and distribution per will or intestacy rules. Standard of care under UPC § 3-703 requires personal representative to settle and distribute estate with due care and diligence. Bond requirements may apply depending on will provisions, beneficiary consent, and statutory thresholds in each state. Reasonable compensation under UPC § 3-719 entitles personal representative to fee for services performed. Strong fiduciary services counsel guides representatives through each duty while limiting personal liability.

Estate inventory under UPC § 3-706 requires personal representative to identify and value all probate assets within 90 days of appointment. Real estate appraisals, business valuations, and securities pricing establish fair market value as of date of death. Non-probate assets (jointly held property, POD/TOD accounts, retirement accounts, life insurance) pass outside probate by operation of law. Digital assets, intellectual property, and crypto holdings require specialized identification procedures. Strong bequeathment and wills counsel coordinates inventory completion with appraisal experts.

Specific bequests pass first under the will, followed by general bequests, demonstrative bequests, and residuary clause distribution. Abatement rules under UPC § 3-902 reduce bequests proportionally when estate assets prove insufficient to satisfy all gifts. Ademption occurs when specific gifts no longer exist in the estate at death, generally extinguishing the gift. Per stirpes vs per capita distribution affects how predeceased beneficiaries' shares pass to their descendants. Coordinated estate distribution counsel applies abatement, ademption, and distribution rules to each beneficiary's share.

Notice to creditors (publication and direct mail to known creditors) opens claim period typically running 3 to 6 months by state. Claim review requires personal representative to allow or reject each timely creditor claim with reasoned basis. Payment priority under UPC § 3-805 follows administrative expenses, funeral costs, secured claims, taxes, and unsecured claims in order. Insolvent estates require pro rata reduction of lower-priority claims after higher-priority full payment. Strong probate after death counsel manages creditor notice, claim review, and priority payments under court supervision.

Federal estate tax (Form 706) applies to estates exceeding $13.61 million (2024 exemption) at rates up to 40% on excess value. State estate tax thresholds vary widely (Massachusetts $2M, New York $6.94M, Oregon $1M, others none) with separate filings required. Decedent's final Form 1040 covers income through date of death, while Form 1041 fiduciary income tax return covers estate income. Generation-Skipping Transfer (GST) tax applies to transfers to grandchildren or skip persons at unified rate. Coordinated estate and inheritance tax planning counsel synchronizes federal, state, and fiduciary returns within deadlines.

Will contests under state probate codes challenge testamentary capacity, due execution, fraud, undue influence, or revocation of the offered will. Standing to contest typically requires status as heir, prior beneficiary, or person whose share would increase if challenge succeeds. Statute of limitations (4 months to 1 year by state) requires prompt filing of will contest petition after admission. No-contest clauses (in terrorem) may forfeit a contestant's bequest if challenge proceeds without probable cause. Strong will contests counsel evaluates standing, deadlines, and substantive grounds before filing.

Inheritance disputes among heirs and beneficiaries often involve interpretation of will language, asset valuation conflicts, and personal property allocation. Family settlement agreements may resolve disputes without litigation, subject to court approval where required. Probate court mediation programs facilitate negotiated resolution at substantially lower cost than full litigation. Equitable remedies include constructive trust, accounting, and removal of personal representative for cause. Coordinated family estate disputes counsel pursues settlement first while preparing for trial.