How Much Does an Estate Have to Be Worth to Go to Probate in California?

How much does an estate have to be worth to go to probate in California? If you have found yourself asking this question, you have come to the right place. Losing a family member is difficult and involves many complex issues. The process of probate can, unfortunately, be stressful and time-consuming. You can eliminate much of the legal stress by seeking help from an experienced Huntington Beach estate planning attorney.

What Is Probate?

Probate is a general term for the process of settling an individual’s estate through the court system when they die. It can include collecting and valuating assets, paying any remaining balances due, and rightly distributing assets to named heirs and beneficiaries. An executor, who is often named in the will of the deceased individual, will be responsible for completing probate.

The process can be lengthy, with factors such as the size of the estate and number of debts impacting the time it takes to resolve. Due to the complexity, this process is done with the help of an experienced and trusted estate lawyer.

Probate Without a Will

Probate becomes more complex if the decedent does not create a will. One of the issues with not having a will in place when an estate goes into probate is determining who will act as the executor or the one who oversees the process. Oftentimes, the deceased person will name the person whom they have chosen to act as executor. Without a will, the court will appoint a person to settle the estate through probate.

If there is no will in place, the decedent’s assets and property will be distributed according to California’s succession laws instead of the person’s wishes. Ultimately, it is important to create an estate plan to ensure property is passed as desired and to reduce the legal burden on the loved ones dealing with probate.

Estate Value and Probate

One of the most important factors in determining whether an estate must go through probate or not is its value. In California, if the value of an estate is less than $166,250, it may qualify to go through a simplified process. This total does not include certain exempt assets that have already been designated to a specific individual.

Another potential qualifying factor for being able to go through a simplified process is if you were married to the decedent. There are certain laws that allow property and other assets to be directly transferred to the spouse after their partner’s death if that property was owned jointly by them both. An experienced lawyer can help you determine if this can be a viable option for your situation.

Assets Not Subject to Probate

There are certain assets that are not required to go through probate in California. There are cases in which a decedent’s property may be divided between assets that must go through probate and others that can avoid it. Some assets which are not required to go through this process include:

• Assets that are held in joint ownership with another individual.
• Anything held in a living trust.
• Assets that a married couple deems to be community property and are therefore owned by both individuals.
• Assets that have been held in a bank account by the deceased person but are specifically set aside for someone else.
• Assets for a specific beneficiary, such as life insurance.

How an Estate Lawyer Can Help

While the probate process may seem easy to understand, it can be lengthy and overwhelming, especially during a time of grief. Making a choice to acquire legal counsel can save you significant time and energy, as well as give you the space and time to grieve with your loved ones. Choosing the right attorney means having these benefits while also ensuring the process is done correctly. Allow someone who is experienced in such legal processes to support you during this time.

FAQs

Q: Do All Estates Have to Go Through Probate in California?

A: In California, not all estates have to go through probate. If the value of all assets at the time of the individual’s death is not greater than the limit set by the state at their time of death, then it is not required to go through probate. In cases where the amount is less than this, a different and generally more simple process can be used.

Q: What Assets Are Not Subject to Probate?

A: Not all assets must go through probate to be transferred to another individual. For example, if the property was owned in joint tenacity, ownership of the property would automatically be transferred to the surviving owner. Assets held in a living trust are also not required to go through probate. In addition, if a beneficiary is specified in the life insurance policy, probate is not required.

Q: Are Taxes Required to Be Paid During the Probate Process?

A: The state of California does not tax the inheritance of beneficiaries. However, there are cases in which federal estate taxes are still required to be paid after an individual dies. In addition to federal taxes, you may be required to pay any outstanding income taxes that the deceased person owed at the time of their death. At this point, a final tax return may be filed, and a final income tax payment may be made.

Q: Is Probate Required for a Small Estate in California?

A:  Estates which are comprised of assets valued below a certain amount are not required to go through probate in California. Instead, there is a simpler option available. There is a document called a Small Estate Affidavit, which you can fill out to potentially have the property transferred into your possession. The amount that determines whether an estate is considered small or not changes year by year.

Reach Out for Legal Help Today

When you lose a loved one, it can be difficult to juggle grief with the responsibility of ensuring that all of their assets are properly handled. Even if you are supported by your friends and family, the legal process can seem overwhelming. In such cases, seeking legal counsel from an experienced, compassionate estate lawyer who can guide you through the process can be helpful. Contact Kevin Rice, Attorneys at Law, today to learn more about how we can help.