If you die owning property that does not automatically pass to your survivors, a probate must be started to handle your estate. This is true whether you die with a will or without one.
Usually, the person named in the will as the Personal Representative (or Executor) starts the probate. If you die without a will, anyone with an interest in your estate may petition to start probate proceedings.
What Is Probate For?
Probate is designed to serve several purposes, including:
appointing someone to be in charge of handling the estate
identifying people and organizations who may be entitled to inherit
determining whether a will is valid
giving creditors an opportunity to come forward with claims
conducting an inventory of the property in the estate
ensuring that all taxes are paid
distributing the property to those entitled to inherit
How Bad Is Probate?
Many people believe that probate takes years and costs thousands of dollars. The truth is that most estates can be probated in just a few months. Below are the steps of a basic probate.
Starting Probate
The first step is to file a petition with the district court located in the county where the deceased person lived at the time of his or her death. If there is a will, the original is filed along with the petition. The petition asks the court to accept the will (if any) and appoint a person to handle to probate.
Notice of the petition must be sent to anyone who may be entitled to inherit. It must also be published in a local newspaper. A hearing will be held at which time the judge will decide whether to accept the will, appoint someone to handle the estate, and determine who is entitled to inherit.
Conducting an Inventory
The person handling the estate (called the Executor, Personal Representative, or Administrator) must make an inventory of all of the property in the estate. This includes the value of all real property (e.g., house, land) and personal property (e.g., bank accounts, possessions).
Giving Creditors Notice
The person handling the estate must also give creditors the opportunity to come forward with claims against the estate. Known creditors must be sent notice by mail. Notice is also published in a local newspaper to let others know that they must come forward with any claims of money owed. Creditors only have a certain amount of time to come forward (one month or two months, depending on the size of the estate). After that time, no one can claim the deceased person owed them any money.
If creditors do submit claims, the person handling the estate must determine whether or not the claims are valid. Any valid claims are then paid out of the estate. The person handling the estate is NOT personally responsible for paying any debts.
Filing Tax Returns
Generally, most estates are not large enough to owe estate taxes. Nevertheless, an estate tax return must be filed with the Oklahoma Tax Commission. For larger estates, a return may need to be filed with the IRS as well.
The Oklahoma Tax Commission will make sure that the person did not owe any taxes at the time of his or her death. If no money is owed, the Commission will send a letter stating that no taxes are owed.
Closing the Estate
Once all the requirements are met and debts are paid, the rest of the property in the estate can be distributed to those who are inheriting.
How Do I Avoid Probate?
Even though probate is usually not too bad, some people would prefer to avoid having their estates probated. Common strategies used to avoid probate include:
