Probate
The court process that validates a will, appoints someone to settle the estate, pays debts and transfers remaining assets to heirs.
What it means
Probate is how a state court oversees the transfer of a deceased person’s property that has no other built-in way to pass, such as assets titled only in their name with no beneficiary. The court confirms the will is valid (or applies state inheritance law if there is none), appoints an executor or administrator, gives creditors time to make claims and approves final distributions.
The process varies widely by state. It can take from a few months to more than a year and involves court fees, legal costs and sometimes executor fees, which reduce what heirs receive. Filings generally become public record. Many states offer a simplified procedure or small-estate affidavit for estates under a certain value, and owning real estate in another state can require a second, ancillary probate there.
Assets that pass by beneficiary designation, joint ownership with survivorship, transfer-on-death registration or a funded trust generally skip probate.
Example
For example, a person dies owning a house in their name alone, a bank account with a payable-on-death beneficiary and a 401(k) with a named beneficiary. Only the house goes through probate; the bank account and 401(k) go straight to the named beneficiaries.
How it’s used
- Settling the estate of someone who died with assets in their name alone
- Weighing whether a trust or beneficiary designations are worth setting up
- Estimating how long heirs may wait to receive property
Good to know
- Probate rules, timelines and small-estate thresholds differ by state, which is one reason many families use an estate attorney.
Related terms
Educational information only, not financial, tax or legal advice. Rules, limits and rates change; check the IRS, your lender or plan, or a qualified professional before acting.