What Does Probate Mean?

What Does Probate Mean?

What Does Probate MeanWhat Does Probate Mean? When a family member dies, what happens to the estate; the bank and savings accounts, the stock and bond accounts, the real estate, insurance, trusts, annuities, business interests, and other assets? It depends on probate.

What Does Probate Mean?

Nolo Law for All says “Probate is a legal process that takes place after someone dies. It includes:

  • proving in court that a deceased person’s will is valid (usually a routine matter)
  • identifying and inventorying the deceased person’s property
  • having the property appraised paying debts and taxes, and
  • distributing the remaining property as the will (or state law, if there’s no will) directs.

If deceased did not have a Will, then the property will be distributed according to Nebraska law regarding intestacy (dying without a Will).

What Does Probate Mean?

Not all estates must go through probate. If an estate falls below a certain threshold, it is considered a “small estate” and doesn’t require court supervision to be settled. Click here to find out Nebraska’s small estate threshold and procedure.

Not all assets are subject to probate. Some kinds of assets transfer automatically at the death of an owner with no probate required.  The most common kinds of assets that pass without probate are:

  • Joint Tenancyassets-when one joint tenant dies
  • Tenancy by the Entirety or Community Property With Right of Survivorship
  • Beneficiary Designations-retirement accounts and life insurance policies have named beneficiaries.
  • Payable on Death Accounts/Transfer on Death Accounts-bank and brokerage accounts can have designated beneficiaries, too. The account owner can fill out forms to designate who should receive the account assets after their death.

If a decedent has created a Living Trust to hold his or her’s largest assets, then that estate, too, won’t go through probate, unless the assets left outside of the trust add up to more than Nebraska’s small estate limit.

Now, what about estate taxes and inheritance taxes?

In Nebraska, there’s an inheritance tax. Nebraska is among only seven states that assess a separate inheritance tax on certain property owned by a Nebraska resident.

According to the balance, each beneficiary of a Nebraska estate receives an exemption from the inheritance tax based on the beneficiary’s degree of relationship to the decedent.

  • Surviving spouses and charities are entirely exempt from the inheritance tax.
  • Immediate relatives entitled to receive an exemption of $40,000
  • Remote relatives entitled to receive an exemption of $15,000.
  • Other transferees entitled to receive an exemption of $10,000.

Disclosure: Estate taxes, wills, and probate are areas that need the expertise of a lawyer who specializes in these areas. Always seek professional advice.

Even before the property has cleared probate in Omaha, the heirs may decide to quickly dispose of the property. That’s where Styl Properties, Inc. can help. The heirs may not want to bring the house up to today’s standards. Today’s buyers want quartz counter tops, the latest stainless appliances, and wine coolers. Your family may not have the money for deferred maintenance issues or renovation. The heirs may have no inclination to spend time renting, or staging and showing the house.  The heirs may live in another city and don’t have the time or money to travel back and forth to the Pittsburgh area.

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Styl Properties, Inc. is here to help homeowners out of any distressed situation.  

As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what!  There are no fees, upfront costs, commissions, or anything else.  We offer the simple truth about your home and how we can help you sell it fast.

Give us a ring. We would love to help you understand the process and to answer all of your questions.

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