When it comes to collecting your inheritance after the passing of a loved one, many people are surprised to learn that there is a probate process that the estate has to pass through before funds and property can be distributed.
Probate is an important part of the legal process that helps ensure a will is valid and that assets are distributed according to how the deceased person intended. However, Nebraska probate can take months (or even years). Applying for an inheritance advance can be beneficial in securing funds while you wait for probate.
To learn more, call Rockpoint Probate Funding at (888) 263-8588.
What Is Probate?
The term “probate” has Latin origins, and it literally means “to test” or “to prove.” The probate process involves validating the will that the deceased person drafted and then distributing the assets of the estate according to the instructions in the will.
If someone dies without a will, they are said to have died “intestate,” and their assets will be distributed according to Nebraska’s intestate succession laws. Intestate succession follows a cookie-cutter approach, which may be contrary to the decedent’s intent, which is why estate planning is such a crucial activity to be done during one’s lifetime.
Probate in Nebraska can take anywhere from six to twelve months, though larger and more complicated estates can easily take years.
How Does Probate Work in Nebraska?
Thee probate process works fairly similarly across all 50 states, including Nebraska. Here’s a brief overview of how the probate process works:
- Step 1: File a petition. Probate “opens” when you file a petition with the court. A relative, beneficiary, or executor is eligible to do this.
- Step 2: Notify interested parties. An interested party is someone who is entitled to something from the estate. This can include heirs, beneficiaries, and creditors. These parties have a right to contest the will or file claims against the estate.
- Step 3: Validate the will. The court will confirm that the will complies with the legal formalities and the document is authentic.
- Step 4: Appoint an executor. If the will named an executor, this person will serve to manage the distribution of assets according to the will’s instructions. Executor compensation may be available.
- Step 5: Inventory and appraise the estate. The executor will compile a detailed list of the estate’s assets and set to work on assigning each a fair value, including hiring professional appraisers.
- Step 6: Pay any outstanding debts. Most estates will have certain bills and taxes that must be paid before any beneficiaries can receive anything. This includes evaluating and resolving creditor claims.
- Step 7: Distribute assets and close out the estate. Finally, after everything has been settled, the named beneficiaries or intestate heirs can receive assets according to the will or intestate succession laws.
Can Probate Be Avoided?
Whenever someone dies with property that needs to be transferred, probate is typically required.
There are, of course, exceptions. For example, there is a category of assets referred to as “non-probate assets” that do not pass through probate. Instead, they will be directly transferred to the appropriate beneficiary upon death.
Non-Probate Assets
Non-probate assets include:
- Living trusts: A living trust is a trust created while someone is alive, which provides instructions on how assets would be distributed upon their passing.
- Pay-on-death accounts and deeds: These are assets that have named beneficiaries, so the asset can pass directly to the person upon death. Examples include life insurance policies, IRAs and other retirement accounts, and bank accounts.
- Jointly owned property: If someone owns property as “joint ownership with the right of survivorship,” the person who survives automatically retains full ownership.
- Gifts transferred during one’s lifetime: To avoid probate, someone can begin gifting and transferring assets before they die.
Avoiding Nebraska Probate
There are two notable exceptions to the rule that an estate has to pass through the full probate process in Nebraska, and both have to do with the size of the estate.
- Small estate affidavit: If the size of a Nebraska estate is below a certain threshold, probate can be skipped altogether. This can occur for personal property valued at or below $100,000 and real property (land) valued at or below $50,000.
Instead of going through probate, the rightful inheritor simply fills out an affidavit form, gets it notarized and presents it and a copy of the death certificate to the appropriate institution, such as a bank. - Summary administration: While summary administration doesn’t allow you to skip probate altogether, it is a way to simplify and accelerate the probate process.
Again, whether an estate is eligible for summary administration depends on the size of the estate. Here, there is not a specific threshold. Instead, eligibility is based on a balance of the size of the estate and various allowances and costs.
4 Benefits of Getting an Inheritance Advance
Given that the probate process can be lengthy and complex, many inheritors are eager to get ahold of their inheritance before the estate is fully settled.
One option to get funds in advance is through an inheritance advance, also referred to as inheritance funding. There are several reasons why you might consider an inheritance advance, including the following 4 benefits:
- Get a financial lifeline. If you have immediate financial obligations like medical bills, housing expenses, or emergency situations, having cash in advance can help you meet these needs.
- Avoid going into debt. Mounting bills can result in being subject to high interest rates and steep penalties that can be avoided with an inheritance advance.
- Take advantage of investment opportunities. If you have a financial opportunity you’d like to explore that requires cash, you can get the necessary funds to capitalize on it.
- Resolve estate challenges. If the estate being probated has any disputes or other legal issue, you may need to get ahold of funds early to help settle them.
Find Out How Much You Can Get With an Inheritance Advance
Did you know that applying for an inheritance advance doesn’t require getting a credit check, and you can potentially get cash within one day? To learn more, contact Rockpoint Probate Funding at (888) 263-8588.
