Often times, when someone becomes an heir to an estate, they
are unclear on exactly what to do next.
Because of the complex probate process, heirs rarely understand their
rights and choices, their role in probate, or the probate process itself.
As an heir, there are some things you should understand right
away about your role in the probate process:
- Contrary to popular belief, the estate attorney handling the
probate estate represents only his/her client, the Personal Representative,
“PR” for short (also referred to as the Executor or Administrator)
- Because the estate attorney does not represent any heir
associated with a probate estate other than the personal representative, he or
she is under no obligation to take or return any phone calls, or to provide you
advice as to your legal rights as an estate heir.
- Any information that you receive regarding the estate will
likely come in the form of a letter or probate pleadings sent to you by the
estate attorney.
What is probate?
Probate is a court supervised process where the validity of
the decedent’s (person who passed away) last will is established and through
which the decedent’s estate is administered.
Probate is a very
time consuming and paperwork intensive process. While some estates can be administered in 18
months or less, a large percentage of estates can take up to 3 years to close.
This means that the estate heirs may not receive any inheritance money for up
to 3 years after probate first begins.
How does the probate process work?
The very first step in the probate process is filing the Petition for Probate. This petition, along with the original will
and codicils (legal alterations to the will), if any, are filed with the
probate court. Also filed at this stage
is the Notice of Petition to Administer
Estate. In this case, the
“petitioner” is usually the proposed Personal Representative.
Once these forms have been filed, the court clerk will set a
hearing for 45-60 days after the filing date.
It is at this point that notice has to be given to all of
the people named in the will. This is
most likely the stage at which you first received notice of your heirship.
The Notice of Petition
to Administer Estate is also published in a local newspaper to alert the
decedent’s creditors that they must file their claims with the court within a
specified period of time.
At the hearing, if no one has filed an objection to the
probate, the court will admit the will to probate and appoint the PR. After this appointment, the court will issue
Letters [either “Letters Testamentary” or “Letters of Administration”] which
are used by the PR to prove that they have the authority to act on behalf of
the estate.
The second phase of probate consists of an ongoing process
of filings, notifications and applicable settlements. The following is just a short list of tasks
which must be completed:
- Identify all of the assets owned by the decedent at the
time of death
- File an Inventory & Appraisal which values the estate’s
assets, both real (land) and personal
- Notify the Department of Health Services
- Liquidate all of the estate’s assets
- Pay any debts, claims or taxes that are due and object to
claims which should not be allowed
- Settle all financial and property disputes
- The final phase of probate consists of closing the estate
and distributing the remaining assets to the heirs. If all goes smoothly, the final actions in
the probate will be:
- Obtaining a court order of distribution
- Closing the estate accounts
- Making final distributions to the heirs
- Obtaining receipts from the heirs for the distributions
made to them
As you can tell, the probate process is indeed a long and
difficult process. The good news is that
the Personal Representative chose to retain a probate attorney to guide the
estate through this complicated process!
The bad news is that, even with the help of an attorney, the probate
process can still take 12-18 months or longer!
WHAT IF YOU NEED A PORTION OF YOUR INHERITANCE NOW?
If there is a substantial amount of cash in the estate, it
may be possible to persuade the PR and the estate attorney to petition the
court for a preliminary distribution.
When this is not an option, contact Inheritance Funding
Company, Inc. [IFC]. IFC provides cash
advances to heirs who are stuck in Probate.
IFC’s inheritance advances are not loans, so there are no monthly payments. Instead, IFC actually purchases a portion of
your inheritance and is paid back directly from the estate when Probate is
closed. If you are interested in
learning more, call one of IFC’s Funding Officers at (800) 944-2072 or visit
IFC’s website at www.InheritanceFunding.com.
This time on the Inheritance Funding Blog, we’re going to take a look at a few extreme examples of heirs awaiting an inheritance. Some
people call it luck. Others just say that it’s being born to the right circumstances.
No matter your stance on the subject, the public is becoming increasingly interested in the lives of famous heirs who are waiting to inherit
more money than most people could ever imagine spending. Below are some of today’s heirs and heiresses staking their claims to their relatives’ vast fortunes.
Delphine
Arnault: Delphine’s father, Bernard, heads the LVMH Group whose
portfolio includes Louis Vuitton, Moët, Hennessy, Marc Jacobs, Dior among
others. With this extensive collection of brands, LVMH has its hands in all things
luxury. Delphine heads the Dior shoe and bag divisions and is involved with
many other products and designers. Deemed the Wolf in a Cashmere Coat, she is
one of the richest women in the world.
Sam
Branson: Sam’s father, Sir Richard Branson, is worth an estimated $3.8
billion and is the man behind the Virgin collection of companies such as Virgin
Records, Virgin Books, Virgin Atlantic Airways, Virgin Mobile and Virgin fuels.
Sam is often seen hanging with Hollywood celebutantes, modeling, and relaxing
on his dad’s private 74 acre island, Necker
Island. It remains to be seen just how much Sam will eventually be
involved in his father's businesses.
Charlene
de Carvalho-Heineken: Charlene became the wealthiest woman in the Netherlands
when her father, Alfred Heineken, passed away in 2003. The heiress to the
premium beer from Holland
is worth more than $7 billion and is currently maintaining the business’
operations.
The
Ikea sons: IKEA is the world’s premier supplier of affordable home
furnishings. Headed by Ingvar Kamprad, IKEA is, in fact, the world’s largest
furniture retailer generating around $28 Billion dollars per year in worldwide
sales. Ingvar’s three sons are expected to inherit tens of billions of dollars
while also sitting on the company’s executive board.
Abigail
Johnson: Abigail “Abby” Johnson’s family controls 49% of America’s
largest mutual fund company, Fidelity Investments. After Harvard Business
School, Abigail quickly
worked her way through the ranks at Fidelity and in 2001, took control of
Fidelity’s mutual fund division. As of
2008, Abigail Johnson was worth around $15 Billion dollars US, placing her as
the 43rd richest person in the world.
Aditya
Mittal: Aditya is the heir and CFO of the Arcelor Mittal Steel company.
He was instrumental in the company’s $38
billion takeover of European steel business, Arcelor. He shows no signs of halting expansion and it
seems he has inherited his father’s ambition as well as his vast wealth.
Ivanka
Trump: As the daughter of Donald Trump, Ivanka stands to inherit her
father’s undisclosed amount of personal wealth as well as real estate and
entertainment assets. She is already the vice president of real estate
development and acquisitions of the Trump Organization. Her brothers, Donald,
Jr. and Eric, are also executive vice presidents of the corporation and along
with Ivanka will inherit most of what “the Donald” leaves behind.
Allegra
Versace: On her 18th birthday, Allegra came into the
inheritance left to her valued at over $700 million. After her early education
in Milan, Allegra attended Brown University.
Her struggle with anorexia is well documented and ongoing. She currently lives in Italy with her
mother, Donatella, and is extremely active in the direction that the Versace
brand ultimately undergoes.
Aerin Lauder Zinterhofer: Granddaughter of
cosmetic greatness, Estee Lauder, Aerin is the public face of the company and
also backs the creative marketing department and global advertising. Today, the Estee Lauder Company is comprised
of 19 brands including Clinique, Prescriptives, Aveda, MAC and Origins. In 2004, Aerin’s stock holdings in Estee
Lauder alone topped $550 million US.
