Probate

While most people know that probate is something to be concerned about (or even fear), few know why. At the Law Finn of David N. Sutton and Associates we take a step by step approach tothe probate process so that our clients not only understand the system, but also are comfortable that their needs are met.

Each person's estate and family situation is unique. While it is always the first step in our process to listen, it important to understand a few basic facts:

What is Probate
Simply stated, probate is the legal process of determining what happens to a person's property after they die. Probate enables ownership of a person's property to be transferred to those who are entitled to it. What makes probate complicated and costly is that it frequently involves the court system to administer the estate and resolve all disputes.

How does the Process Work
Each state has its own rules regarding probate. In Colorado, the process breaks down into six basic steps:

1. Determine if probate is necessary. If the net value of "probate assets" exceeds $50,000 or if the estate has any title to any real property, then probate is necessary.
2. Detennine if there is a last will. The court must make a determination that a will submitted to probate is in fact a valid and final will.
3. Appoint personal representative or administrator. A "personal representative" or "administrator" is appointed to handle the affairs of the estate.
4. Pay bills. The personal representative will arrange for the payment of the claims of all legitimate creditors.
5. Administer the decedent's assets. Conclude decedent's affairs. The personal representative will arrange for the distribution of the assets to those who are entitled to receive theIn.
6. Close the estate. Once all claims are resolved and all probate assets are distributed the court will close the estate and approve the personal representative's actions.

What are the Potential Issues
While the probate process will likely vary in each case, the process is complex and subject to various legal and tax issues. Such issues can include:

• Assembling, collecting and valuing the decedent's assets.
• Identifying all creditors and the paying of the decedent's legitimate debts.
• Titling and distributing assets properly.
• Evaluating claims and disputes of all beneficiaries.
• Timing the payment of taxes.

Each of the above issues can involve additional litigation that can lengthen the process and delay the final closing of the estate.

How Long Will the Process Take
Under Colorado law the minimum time required to close and estate is six months. As a practical matter, those estates not subject to estate taxes take about a year to close while those subject to estate taxes can require up to three years to close.

Do You Need a Personal Representative / Administrator
Because determining the amount and legitimacy of potentially numerous creditor claims along with the complications arising from the valuation and distribution of certain types of assets, the role of personal representative is often difficult, time consuming and problematic. Additionally, the legal standards imposed on personal representatives are strict and carry harsh penalties if not followed. Deadlines have to be met and motions may need to be filed.

A personal representative must, (1) deal with the interests of beneficiaries with impartiality and undivided loyalty, (2) administer the estate solely with regard to the interests of the beneficiaries and (3) manage the assets and affairs of the estate in a prudent fashion. This means that the assistance of a qualified an knowledgeable attorney who knows the probate process can be critical to the proper administration of an estate.

How We Can Help
At the Law Office of David N. Sutton and Assoc. we combine more than 30 years of legal experience with years of financial and accounting experience. As a result we are well suited to meet all your probate needs. Contact us for a no obligation consultation.