Who gets what? In a nutshell, inheritance succession refers to the details in state laws
that specify the order in which assets are distributed to relations when someone dies intestate–aka without a will. Typically, probate courts appoint and supervise a fiduciary, referred to as an administrator, who must adhere to the state’s order of succession.
Estates and The Uniform Probate Code
Most adults have assets, whether modest or many, and when we die, our assets are referred to as our estate: “An estate is the sum of your assets at the time of your death. This is anything you own independently, not what is jointly shared with a partner or what has already been transferred and assigned.The purpose of an estate is temporary: It aids in the distribution of the deceased’s assets.”
Through proactive estate planning, we can arrange for our assets to be distributed in accordance with our own intentions, using tools like wills and trusts. Absent an estate plan, probate courts use state laws of intestacy to determine how assets are divided among relations, once all debts have been paid. Though each state has its own protocols for inheritance succession, many follow the Uniform Probate Code (UPC):
Inheritance succession refers to the order in which a person’s relatives receive their property upon their death, if the decedent fails to leave a will…. Each state maintains its own laws governing the distribution of property left behind by those who died without leaving a valid will….Several states have adopted the UPC in an attempt to standardize estate administration….According to the UPC, close relatives always come first in the order of inheritance. Generally speaking, the surviving spouse is first in line to inherit, with children and grandchildren next … .If the surviving spouse has any minor children, they may inherit the whole estate. Adult children may receive a share of inheritance.From there, the order of succession is generally as follows:
- Grandchildren;
- The decedent’s parents;
- The decedent’s siblings;
- The decedent’s nieces and nephews;
- The decedent’s grandparents; and
- The decedent’s aunts, uncles, and cousins.
Probate Proceedings?
Although a will spells out how assets are to be distributed, and thus eliminates the need to follow the state inheritance succession protocols, probate, “the legal process of administering a deceased person’s estate,” must still be completed. When a will is made, a fiduciary who is responsible for bringing closure to the affairs of the deceased is named, and typically referred to as an executor or personal representative. Absent a will, a fiduciary is appointed by the court, and generally referred to as an administrator. As fiduciaries, both executors and administrators are legally obligated to safeguard the interests of the estate and its beneficiaries, while settling debts and distributing assets.
Aside from the difference in how assets are ultimately distributed, the responsibilities of administrators and executors are similar, and usually include these duties:
Inventory and secure the estate assets
Create a detailed inventory of all assets, including real estate, bank accounts, investments, personal property, and other valuable items….Look for valuable assets in the home, including antiques and artwork….Collect necessary documents, including the deed to the house and tax records…Prevent unauthorized access to property and other assets, such as freezing bank accounts and changing locks and passwords.
Have high-value assets appraised
Obtain professional appraisals for valuable assets to determine their fair market value as of the date of the decedent’s death. Assets that require appraisal include real estate, jewelry, artwork, and other collectibles….
Review and pay taxes, expenses, and debts
File any necessary tax returns, including federal and state income taxes for the deceased and estate taxes….Settle any outstanding debts and liabilities, including mortgage payments, utilities, insurance, healthcare bills, and other expenses….
Once debts have been resolved, assets can be distributed. In the case of a will, the beneficiaries are those named in it. Absent a will, assets are distributed to relations following inheritance succession laws, which may also be referred to as state laws of intestacy. Before a probate court officially closes the estate, executors and administrators must: “Prepare a final accounting of the estate’s financial transactions for approval by the court and distribution to heirs.”
Administrator and Executor Bonds?
Given their significant responsibilities, in most states, it’s typical for administrators and executors to “have bonds to ensure their trustworthy behavior in their roles. These bonds guarantee that all the estate debts will be satisfied and that the remaining assets will be properly distributed to the appropriate heirs.” Expert information about administrator and executor bonds, as well as help obtaining them, can be found at national, digital and direct bond writer, Colonial Surety Company
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Probate and Estate Law?
With a few clicks on The Partnership Account® for Attorneys, lawyers everywhere around the country can quickly help clients secure court and fiduciary bonds, on state-specific obligee forms.
Just select the bond needed, send it to your client for payment, and then download, e-file or print the bond. Our fiduciary bonds include: administrator, estate, executor, guardian, personal representative, probate, surrogate, trustee, conservator and the list goes on. Court bonds include: appeal, supersedeas, injunction, replevin, receiver and more.
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