THE BASICS OF PROBATE What Do I Need to Start the Probate and Estate Administration Process?

What Do I Need to Start the Probate and Estate Administration Process? You will need information about the house and the deceased owner to start. Addresses and phone numbers for the agencies that have this information are listed at the end of this guide.

Probate Checklist:

  • Mortgage statements, bank statements, life insurance policies, pension documents, social security retirement benefit papers
  • Bills for water, electric, gas, and property tax to see if money is owed
  • House value
  • Deed for the house
  • Death certificate
  • Original will (if the deceased had one)
  • Names and addresses for potential heirs

You should also think about potential heirs. An heir is a person who will inherit property based on a will (or state law if there is no will). If there is no will, make a list of people related to the deceased by blood, marriage, or adoption. These people will need to be contacted, because they could have a right to the property.

BEFORE GOING FURTHER:

It is best to order a title search at this point to check for liens on the house. Remember that you are responsible for all liens against the property after you take legal ownership of the property.

If your want to get a title search to check for liens, you should contact a title insurance company, which can be found by contacting a licensed real estate agent.

Step One: Become a Personal Representative

To begin the probate process, you must become a personal representative (also known as an “executor” or “administrator”). This is done by filing a document called a Petition for Probate and Grant of Letters. There are two kinds:

  • If the deceased person had a will that names you the personal representative, you will need to file for Letters Testamentary.
  • If the deceased did not have a will, or the will did not name you the personal representative, you will need to file for Letters of Administration.

If there is no will or you are not the person named as personal representative in the will, you will also need a Renunciation from other possible heirs. This paper must be signed by all possible heirs. It can be signed by the heirs at the Register of Wills or in front of a notary.

You must go to the Register of Wills in City Hall in Philadelphia (Room 180 on the first floor) to get this paperwork.

Bring with you:

    • Your photo identification
    • Original death certificate for the person on the deed of the house
    • Proof of the house value (Philadelphia Office of Property Assessment printout or last property tax statement received)
    • Payment for fees
    • Decedent’s will (if there is one)
    • Renunciations from all heirs
    • A stamped envelope with your name and address written on it

    Important:

    A Renunciation only means the heir does not want to be Personal Representative. It does NOT mean the heir is giving up all right to the property.

    The Register of Wills will take 7-10 business days to approve the Petition for Probate and issue Letters. You can pick up the Letters in person or have them mailed to you, if you left a pre-addressed, pre-stamped envelope.

    Step Two: Fill Out an Inventory Form

    Next, you need to fill out an Inventory Form. You can get this form from the Register

    of Wills when you turn in the Petition for Probate in Step One.

    List all assets owned by the deceased person, such as real estate, bank accounts, safe deposit boxes, and other things of value. When you are done with this form, make two copies and bring it back to the Register of Wills.

    Step Three: Tell Beneficiaries

    As Personal Representative, you must tell all other people who could possible inherit from the deceased person about the probate. These people are called beneficiaries. To do this, you must:

    • Send a Notice or Beneficial Interest in Estate to any possible heirs.
    • Fill out a Certification of Notice to Heirs at the Register of Wills.

    Who is a possible heir?

    • Anyone named in the will as a beneficiary, and
    • People who can inherit the property based on state intestacy law, even if there is a will
      • This could be the spouse, children, parents, siblings, grandparents, aunts, uncles, and/or the children of deceased aunts and uncles, depending on whether these people died before or after the deceased.

    Warning

    If you are not sure who is a possible heir, you should contact a lawyer before taking any more steps. If you do not tell other possible heirs, they may claim a right to the property later!

    Step Four: Tell Creditors

    As Personal Representative, you must try to pay the debts of the deceased person out of the estate assets. If the deceased had unpaid bills and you advertise the probate, the creditor must come forward and make a claim for payment within one year of the advertisement.

    • The advertisement must appear three times in:
      • The Legal Intelligencer (a Local legal newspaper), and
      • A general newspaper (the Philadelphia Daily News or Philadelphia Tribune).
    • If creditors do not come forward within a year, they lose the right to be repaid.
    • If creditors come forward and you have not advertised, they could claim the house for repayment of the debt.

    Step Five: Pay Taxes

    As the Personal Representative, you are responsible for paying several kinds of taxes. You should understand that this is an important step and that the following taxes must be paid:

    • Pennsylvania Inheritance Tax: You must file a state inheritance tax return. You can contact the Pennsylvania Inheritance Tax Unit to find out what you need to file the return and how much you will owe. The amount you owe can be lowered if you paid for funeral and burial costs. You must file 2 copies of the inheritance tax return, along with payment for the tax owed, with the Register of Wills.
    • Federal Estate Tax: This only applies when the deceased owned more than $5,430,000 of property, so you likely will not have to worry about this.
    • Income Tax Return for the Deceased: You may also have to file an income tax return for the deceased person, if he or she recently passed away.
    • Real Estate Taxes: As the new owner of the property, you are responsible for paying real estate taxes, both back taxes owed and current taxes going forward.

    Step Six: Get a Deed

    One of the most important steps is getting a Deed. This is the official document that changes legal ownership from the previous owner to you.

    1. Write the Deed: We strongly recommend that you get a lawyer to write the deed. If you cannot afford a lawyer and do not qualify for free legal assistance, a legal services organization might be able to refer you to the Philadelphia Bar Association’s Modest Means Program to write a deed for $400. Note that the Modest Means Program may require you to pay for additional costs, including title search and recording fees.
    2. Get the Other Heirs to Sign the Deed: All other heirs MUST sign the deed. If they do not, they have not given up their right to the house.
    3. Record the Deed: Bring the deed to the Philadelphia Department of Records. There will be a recording fee of $230. You may also have to pay transfer taxes if there are other heirs giving their interest in the property to you. Along with the deed, you will have to submit 2 copies of the Philadelphia transfer tax certification, 2 copies of the Pennsylvania transfer tax certification, and show a photo ID.

    Step Seven: Give Out Other Assets

    If there are assets in the estate other than the property-like a car or a bank account- you should give those assets to the heirs who are entitled to them. If there is a will, the assets should be given out based on what is written in the will.

    Step Eight: Fill Out a Status Report

    Your last step will be to fill out a Status Report and to file it at the Register of Wills. This will show that you have finished the estate administration process and that the file can be closed.

    Reference: Philadelphia VIP; Law Work, July 2012 Philadelphia

    Filed Under: Estate Planning; Probate; Estate Administration

    Kindly visit our Estate Planning and Probate & Estate Administration websites for more information on this topic.