Probate is the court-supervised administration of an estate. If you have a Will, upon your death your Executor will present it to the Court. It is a common misconception that merely possessing the Will vests someone with the authority to act. In order for a Will to be effective, it must be admitted to probate. If you die without a Will, the Court still has control over the assets of your estate.
Probate is necessary where there are assets which cannot be transferred. For example, real estate titled in the decedent’s name cannot be sold without passing through probate. Investments with no beneficiary designation generally require probate to transfer them to heirs.
Banks and financial institutions may require “Letters of Appointment” or “Letters Testamentary.”
This is an official document, issued by the Clerk of Court empowering the Executor to act on behalf of the estate.
Court supervision of probate ensures that your Executor or the court-appointed Administrator handles your estate legally, and according to your wishes. To ensure that the Will or the rules of inheritance are followed, the personal representative must report the assets, debts, and disbursements of the estate to the Court. The personal representative also files tax returns on behalf of the decedent and the estate.
Iowa law requires that notice of probate be published. The notice must be published for two consecutive weeks. Then, the Estate must remain open for four months before it can be closed. During this time, the personal representative will sell real estate, liquidate assets, pay creditors, and make disbursements to beneficiaries. Other factors may require a longer probate period, but generally, the probate of an estate lasts around six months.
Attorney’s fees and court costs cannot be paid until the estate closes. In Iowa, attorney’s fees are statutorily-controlled and are capped. The personal representative is also entitled to fees. By comparison, other methods of asset disposal (like a revocable trust) have no fee caps.
Probating an estate is fairly straightforward. Court-supervised administration of an estate is neither lengthy nor overly expensive and has the benefit of ensuring that all the assets of the estate have been disposed of properly and legally. If you have questions, make sure that you contact an attorney who specializes in probate and estate administration.