Chapter 4 - The Probate Process Flashcards
Define Abatement
The reduction in assets transferring to a legatee because the estate has insufficient assets to satisfy all the legatees.
Define Ademption
Extinction of a legacy because an asset, specifically bequeathed to a legatee, has been disposed of prior to death.
Define Administrator
A person, usually a relative of the deceased, appointed by the probate court to oversee the probate process when an executor has not been named.
Define Ancillary Probate
Concurrent second probate process conducted in a non-domiciliary state in which the decedent owns property, which often requires the services of an attorney from that state, and separate court fees.
Define Domicile
Where a person lives, location of their home.
Define Estate Administration or Succession
The passing of property a death to surviving heir/legatees.
Define Executor
Estate representative designated in the will by the decedent. An executor may service without bond if bond is waived by the decedent.
Define Heir
One who inherits under state law.
Define In Trust For (ITF) Accounts
A bank account utilizing a beneficiary designation.
Define Legatee
One who inherits under the will.
Define Letters of Administration
A legal document that affirms the power of the administrator to act as the agent of the probate court.
Define Letters Testamentary
A legal document that affirms the power of the executor to act as the agent of the probate court.
Define Pay-On-Death Bank Account
A bank account utilizing a beneficiary designation.
Define Probate Process
The legal proceeding that serves to prove the validity of existing wills, supervise the orderly distribution of the decedent’s assets to the heirs, and protect creditors by ensuring that valid debts of the estate are paid.
Define Situs
The place, generally referring to the state, where property is located.
Define Surety Bond
A bond posted by the administrator or the executor of the estate to protect creditors, heirs, and legatees from losses created by the administrator or executor.
Define Totten Trust
Not a trust, but rather a bank account with a beneficiary clause.
Define Transfer-On-Death Account (TOD)
An investment account utilizing a beneficiary designation.
Define Devisee
A person who inherits real property under the will.
What are the possible ways assets may be transferred and retitled? 4
- Probate process
- Contract law
- State titling law
- State trust law.
What are the advantages of transferring assets through the probate process?
- Implements disposition objectives of testator
- Provides for an orderly administration of assets
- Provides clean title to heirs and legatees
- Increases the chance that parties of interest have notice of proceedings and, therefore, a right to be hear.
- Protects creditors by insuring that debts of the decedent are paid.
When will the probate court not honor the wishes set forth by the decedent in the will?
In Instances of proven fraud or undue influence by a legatee or third party regarding the decedent or in cases where the decedent lacked mental capacity to execute a will.
How does the probate process protect a decedent’s named heirs?
- Due to the probate processes orderly administration it prevents one legatee or heir from having priority over another of equal rank.
- Provides them with a clear title (free of creditor’s claims) by clearing liens.
How does the probate process protect a decedent’s creditors?
It ensures that the debts of the estate are paid before distributions are made to heirs or legatees.
