8 Steps to Take When Probating an Indiana Estate
When a loved one passes away, their estate is typically required to go through the legal process known as “probate.” Probate involves the administration of the decedent’s estate, ensuring debts are paid, and distributing assets to heirs. If you are in charge of probating an estate in Indiana, you may feel overwhelmed. To help get you started, the Indianapolis attorneys at Frank & Kraft offer eight steps to take when probating an Indiana estate.
Step 1: Determine If Formal Probate Is Necessary: Before diving into the probate process, it is important to determine whether probate is necessary and to categorize assets because not all assets require probate. For instance, trust assets, jointly owned property, life insurance policies, and retirement accounts with designated beneficiaries typically bypass probate. Indiana also offers a simplified small estate process for estates valued at $100,000 or less.
Step 2: Appoint an Executor or Personal Representative: If probate is required, the next step is to appoint an Executor or Personal Representative (PR). If the decedent left a Last Will and Testament, someone is usually named as the Executor in that Will. If there is no Will, the court will appoint someone, typically a close relative, to serve as the PR. The Executor/PR is responsible for managing the estate through the probate process.
Step 3: File a Petition for Probate: The Executive/PR must file a petition with the probate court in the county where the decedent resided. This petition formally requests the court to open the probate case and grants the Executive/PR the authority to act on behalf of the estate. Along with the petition, the original Will (if there is one) and a certified copy of the death certificate must be submitted.
Step 4: Notify Heirs and Creditors: Once the court opens the probate case, the Executive/PR must notify all potential heirs and beneficiaries of the probate proceedings. Additionally, the Executor/PR is required to notify all known creditors of the estate. Indiana law mandates that a notice to creditors be published in a local newspaper to inform unknown creditors.
Step 5: Inventory and Appraise the Estate: The Executor/PR must compile a detailed inventory of the decedent’s assets. This inventory includes real estate, personal property, bank accounts, stocks, bonds, and any other assets. In some cases, a professional appraiser may be necessary to determine the fair market value of certain items, such as real estate or valuable personal property.
Step 6: Pay Debts and Taxes: The Executor/PR is responsible for paying any valid debts and claims against the estate. This includes funeral expenses, outstanding bills, and any other liabilities. Additionally, the decedent’s final income tax return must be filed and taxes due must be paid. If the estate is valuable enough, it may also be subject to federal estate taxes.
Step 7: Distribute the Remaining Assets: After all debts, claims, and taxes have been paid, the remaining assets must be distributed to the heirs and beneficiaries. If the decedent left a Will, the assets are distributed according to the terms of the Will. If there is no Will, Indiana’s intestate succession laws dictate how the assets are distributed, generally to the closest surviving relatives.
Step 8: Close the Estate: The final step in the probate process is to close the estate. The Executor/PR must prepare a final accounting, detailing all actions taken during the probate process, including all income received and expenses paid. This accounting is submitted to the court for approval. Once the court approves the final accounting, a petition to close the estate is filed.
Do Need Help Probating an Indiana Estate?
For more information, please join us for an upcoming FREE seminar. If you need assistance probating an Indiana estate, contact the experienced Indianapolis probate attorneys at Frank & Kraft by calling (317) 684-1100 to schedule an appointment.
Paul Kraft is Co-Founder and the senior Principal of Frank & Kraft, one of the leading law firms in Indiana in the area of estate planning as well as business and tax planning.Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.Read More! Latest posts by Paul A. Kraft, Estate Planning Attorney (see all)
