After experiencing the loss of a loved one, there’s a long list of tasks that must be accomplished. Understandably, this can be incredibly difficult while dealing with the grieving process.
One of the key responsibilities you may encounter as an heir or beneficiary is helping to settle a relative’s estate. This may involve initiating probate, and you may even play an active role in inventorying the estate’s assets and managing distributions.
New Mexico probate is often criticized for taking an inordinate amount of time and being overly complex. In the meantime, you may be encountering bills that need to be paid and would prefer not to wait too long to receive your inheritance. If this sounds familiar, you may be eligible to apply for an inheritance advance.
For more information, call Rockpoint Probate Funding at (888) 263-8588.
What Is Probate?
In simple terms, probate is a legal procedure that distributes a deceased person’s estate. It includes several steps that must be completed in order, including confirming the validity of a will (if the decedent created one), settling debts, and distributing assets.
Probate may be required when there is a will drafted as part of an estate plan, and it may also be required when someone dies without a will. Dying without a will is referred to as dying intestate, and the laws of intestate succession will dictate how assets are distributed following a hierarchy that includes surviving spouses, children, and other relatives, such as parents and siblings.
How To Speed Up the Probate Process in New Mexico
Speeding up the probate is often a priority for beneficiaries who want to receive their inheritance sooner rather than later. Accelerating the probate process can also serve to reduce fees, leaving more money left over for the beneficiaries as intended.
There are two key methods of speeding up the probate process that can be considered during the estate planning process:
- Prepare a self-proving will. A self-proving will is a will that includes a notarized affidavit that verifies the authenticity of the will. Since the will is automatically verified, it doesn’t have to be verified by the court, which can significantly shrink the probate timeline.
- Leverage non-probate assets. As the term suggests, non-probate assets are assets that are not subject to the probate process. These include living trusts, pay-on-death and pay-on-deed accounts like life insurance policies and bank accounts with named beneficiaries, and owning joint property with a right of survivorship.
Steps in the New Mexico Probate Process
New Mexico is one of 18 states that follows the Uniform Probate Code (UPC). This code is meant to create simplified, uniform, and predictable processes for estates that must go through probate.
Though the process works similarly in each state, there can be subtle nuances to be aware of.
In New Mexico, the following steps are required to complete the probate process:
- File a petition to initiate probate. The first step is to open the probate process by filing a petition in the district court in the county in which the deceased had resided. This can be done 120 hours or 5 days after death.
- Appoint a personal representative. If the will specified, an executor will be assigned to manage the distribution of assets, and executor compensation will be paid from the estate. Otherwise, the court may appoint a personal representative.
These persons will be issued Letters Testamentary or Letters of Administration respectively, which grant administrative authority to them. - Send notice to interested parties. Soon after, interested parties such as heirs, beneficiaries, and creditors will be notified of upcoming probate proceedings.
- Pay outstanding debts and taxes. Before any heirs or beneficiaries can receive payment, any debts and tax obligations must first be settled.
- Distribute assets. Finally, the assets can be distributed according to the terms of the will or New Mexico’s intestacy laws.
Can New Mexico Probate Ever Be Avoided?
If it seems like there are a lot of steps in the New Mexico probate process, it’s definitely not your imagination. That’s why probate tends to take a long time and people try to avoid it (or at least dragging it out) whenever possible.
The good news is that there are some situations in which probate can be avoided altogether in New Mexico, including these two options:
- File a small estate affidavit. Smaller estates have the ability to skip probate. In New Mexico, a small estate is defined as one whose value does not exceed $50,000 after accounting for liens, encumbrances, exemptions, and other costs.
If an estate qualifies, the beneficiary can fill out and submit an affidavit along with a copy of the death certificate to prove they are entitled to receive the asset(s). - Own a residence as community property. Mexico is a community property state, meaning that each spouse owns a one-half interest of all property acquired during marriage (less gifts, bequests, and inheritances). Accordingly, when one spouse dies, the other spouse may be entitled to receive the other half of some forms of community property without going through the probate process.
In New Mexico, this can apply when there is a principal residence valued at or below $500,000. There are some caveats, including the spouse must be the one to inherit the property, and there is also a mandatory waiting period of six months.
What Is an Inheritance Advance?
If you are eager to receive your inheritance and prefer not to wait months (or years) until New Mexico probate is finished, consider applying for an inheritance advance. An inheritance advance provides a beneficiary with a portion of their inheritance upfront, and the funds are paid back after the closing of the estate, which completes the probate process.
Inheritance advances can be beneficial because the provide you with immediate access to funds without a credit check or having to stake any collateral. This can give you the cash to pay off debts, settle estate issues, or get needed liquidity for investment opportunities. This flexible use of funds gives inheritance advances a distinct advantage over traditional loans.
To learn more about inheritance advances, call Rockpoint Probate Funding at (888) 263-8588 or begin the application process online.
