Probate
The court-supervised legal process of validating a deceased person's will and overseeing the distribution of their estate to heirs and creditors.
Probate is the legal process that transfers assets from a deceased person's estate to their heirs under court supervision. When someone dies with a will (testate), probate validates the will and authorizes the named executor to collect assets, pay debts and taxes, and distribute the remainder according to the will. When someone dies without a will (intestate), probate determines heirs under the state's intestacy laws (typically spouse first, then children, then other relatives).
Not all assets go through probate. Assets with named beneficiaries (life insurance, IRAs, 401(k)s) and jointly held property with right of survivorship transfer automatically outside probate. Assets held in a living trust also bypass probate. Only assets titled solely in the deceased's name without a beneficiary designation go through probate.
Probate is public, slow, and costly. Proceedings typically take 6 months to 2 years; court costs, executor fees, and attorney fees commonly total 2–5% of the gross estate value. Many states have simplified procedures for small estates (under $150,000–$200,000). Strategies to avoid probate — living trusts, beneficiary designations, joint tenancy — are a primary reason people engage in estate planning.
Real-World Example
The deceased left a $650,000 estate with no trust; 18 months of probate proceedings cost $28,000 in court fees and attorney costs before the house was sold and assets distributed to the three adult children.