PROBATE MYTH NO. 2 IT TAKES YEARS TO PROBATE AN ESTATE
Most estates don’t take years and years to resolve. Usually, the only delay is the period, mandated by state law, that gives creditors time to file claims. The length of the creditors’ claim window varies from state to state; it usually starts when notice of the probate proceeding is published in the local paper and runs from three or four months on the short end to a year on the long end.
After that waiting period is over, the estate can be closed as soon as the personal representative has gathered all the assets, paid debts and taxes. (In states with estate or inheritance tax, the estate may need to get a tax clearance letter from the state department of revenue.) As a practical matter, it usually takes a few months to get everything in order. But most estates are finished within a year.
What makes some probate cases drag on for years, then? There are three main causes:
Family fights. If a family member challenges the will, or if siblings can’t agree about how to divide a parent’s assets, then a court may have to intervene to settle matters. That means acrimony, delay and expense.
A very large estate. If the estate is so big that it owes federal or state estate tax, things are more complicated. There’s no way the estate will be settled before the estate tax return is due, nine months after the death, and many estates receive a six-month extension for filling because the return is so complex. But, more than 99.5% of estates do NOT owe federal estate tax, and fewer than 20 states impose their own estate tax.
Ongoing income. Finally, there are the estates that we hear of in the news-those of celebrities such as Michael Jackson or Marilyn Monroe. These estates continue to receive income (millions of dollars’ worth, in some cases) for decades after the death.
Tip: Probate doesn’t usually drag for years, but it does drag on. Check into easy ways to avoid probate, and you’ll save your family some headaches.
Ref: Mary Randolph, J.D., Nolo
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