Following a death, someone (normally the nominated executor if there is a Will) must determine if probate is needed. Probate is a court supervised process of making sure all of the debts of the decedent are paid and the remaining assets of the decedent are collected and distributed properly.
Many people desire avoiding probate for it could add additional expenses and delays in the administration of a decedent’s estate, but probate provides a process for the estate to be administered completely and properly.
Generally, probate is required if there is an asset of the deceased that cannot be transferred or titled in the name of the appropriate beneficiary without assistance from the court. For example, a third-party will request Letters Testamentary to be issued by a court in order to allow for the transfer of an asset owned by the decedent.
Generally, assets owned by an entity, a trust or jointly owned with the right of survivorship, assets with a payable or transfer on death designation, assets with a beneficiary designation (such as life insurance and retirement account), and real estate subject to a beneficiary deed are not subject to probate.
Only those assets titled in the name of the deceased that do not have any of such designations are subject to probate.
Arkansas law allows for small estates (qualifying estates that are less than $100,000) to be distributed with a minimal court supervision but without a full probate administration.
K. Coleman Westbrook, Jr. is a Partner in the Friday, Eldredge & Clark, LLP law firm in Little Rock. To submit a question, please contact Janet Borders at [email protected].