Before you receive your inheritance, your family member’s estate must go through probate first. Utah probate is a process that either confirms the decedent’s will or determines heirs if there’s no will, settles any debts and taxes, and distributes assets to beneficiaries before closing the estate.
How does the probate process work in Utah? Can families avoid probate, and what can you do if probate takes longer than expected?
Do All Estates Go Through Probate in Utah?
If the decedent’s estate includes real property, like a house, land, or mineral rights, or is worth above $100,000 (excluding land and vehicles), it will undergo full probate.
Some small estates can qualify for informal probate under Utah Code 75-3-1201. When this applies, beneficiaries can collect assets (like funds in a bank account) through a small estate affidavit. There’s no need to file this affidavit with a court. The successor should simply present the filled-out and notarized form to third parties, like a bank holding the assets.
It’s possible to use a small estate affidavit in Utah if the estate is worth less than $100,000 and doesn’t include real property, if the passing took place at least 30 days earlier, and if no one has applied to serve as a personal representative (a.k.a. will executor).
How Long Should Probate Take?
On average, Utah probate takes around four or five months, but some probate cases last much longer. For instance, probate may drag out if:
- The estate is very large and includes complex, difficult-to-value assets
- The decedent held assets in multiple states or abroad
- The beneficiaries dispute the will
- The will executor doesn’t handle their duties correctly, and/or the beneficiaries ask to appoint a different executor
- The estate needs to file a federal estate tax return
What If Someone Dies Without a Will?
If a Utah resident dies without leaving a will, the estate will pass to heirs based on the state’s laws of intestate succession. For example, according to Utah Code 75-2-102, if the decedent was married but had no children, or all their children were also their spouse’s children, their entire estate goes to the surviving spouse.
However, if the decedent had at least one descendant not in common with their spouse, the surviving spouse collects $75,000 and half of the remainder, while the rest passes to the descendants.
Is It Possible To Keep Assets Out of Probate?
Yes, with timely estate planning. One common strategy for avoiding probate is placing property in a revocable living trust. The trust owner can continue managing and using assets as usual throughout their lifetime, but upon their death, the trust becomes irrevocable, and a trustee takes over management. Beneficiaries can then receive assets according to trust terms.
Other ways to keep assets out of probate are joint ownership in real property, transfer-on-death deeds, payable-on-death bank accounts, and life insurance policies with designated beneficiaries.
Are Will Executors in Utah Entitled to Compensation?
Yes. Utah Code 75-3-718 states that personal representatives are entitled to reasonable compensation for their work. The law doesn’t give specific amounts, but in general, the executor’s compensation will depend on how much time and effort they put into settling an estate, as well as the estate’s size.
Executors may bill by the hour or request a percentage of the total estate worth. If the decedent’s will makes provisions for compensating the personal representative, the latter may either accept this arrangement or reject it and ask for reasonable compensation instead.
What Utah Probate Includes
Utah district courts handle probate cases of estates belonging to people who lived in Utah at the time of their passing or held assets in the state.
The personal representative or family will file for probate with a court in the decedent’s county of residence or in the county where they owned property. For example, if the executor files in Utah County, they should deliver their documents to the Provo Courthouse.
After the court confirms that the will is valid, the process involves the following steps:
- Inventorying assets. The personal representative will make a full list of all the decedent’s assets and their values, as well as any outstanding debts and taxes.
- Notices to creditors. The representative should give notice of the decedent’s passing to potential creditors and repay any valid debts. In Utah, creditors can stake claims up to one year after the decedent’s passing, but it’s possible to shorten this time window to three months by publishing weekly notices of the probate case in a newspaper for three consecutive weeks.
- Settling financial obligations like taxes, mortgage and insurance payments, and lawyer fees. The representative may also use estate funds for necessary repairs to real property while the probate case is ongoing.
- Distributing assets and closing the probate case. Once the personal representative clears the decedent’s debts and other payments, the beneficiaries or heirs can receive their portions of the estate. This wraps up the probate case.
Understanding the Role of a Personal Representative in Utah Probate
The personal representative, also known as the executor, plays a vital role in the probate process in Utah. This individual is responsible for managing the estate, which includes settling debts, managing assets, and distributing the remaining estate to beneficiaries. The court typically appoints a personal representative as dictated by the decedent’s will or, in cases of intestacy, under Utah’s intestate succession laws.
One of the primary duties of the personal representative is to create an inventory of all assets and liabilities associated with the estate. This may involve gathering financial records, appraising properties, and ensuring all claims against the estate are settled. The personal representative must also ensure compliance with state probate laws and may need to engage with legal professionals for guidance throughout the process.
The Importance of Legal Representation in Probate
Legal representation in the probate process can be crucial for addressing complexities that may arise. Navigating probate laws, managing estate disputes, or dealing with claims from creditors can be overwhelming for a personal representative. An attorney with expertise in probate law can provide invaluable support, ensuring that all legal requirements are met and that the estate is administered efficiently.
Common Misconceptions About Utah Probate
There are several misconceptions surrounding the probate process in Utah that can lead to confusion. One common belief is that all estates must go through probate, but this is not true. Smaller estates, particularly those valued at less than $100,000 and without real property, may qualify for a small estate affidavit, allowing heirs to avoid the lengthy probate process.
Can You Access Your Inheritance Funds Faster?
A formal probate process can pose a challenge if you need your inheritance funds for urgent expenses. Moreover, various delays can make Utah probate even longer than expected.
If your bills are mounting or you need your inheritance to cover major expenses like renovations or college tuition, you can apply for an inheritance advance. It’s a type of quick, secure funding you’ll only need to pay back when you collect your legacy.
Unlike a traditional loan, inheritance funding doesn’t require a credit check or collateral. You won’t need to repay the advance if you lose your probate case because of unforeseen circumstances like an inheritance dispute.
Apply for Fast, Risk-Free Funding With Rockpoint Probate Funding
Do you need funds quickly while Utah probate moves slowly? At Rockpoint Probate Funding, we offer fast, risk-free, confidential inheritance funding. Apply for funding and collect cash against your pending inheritance as soon as on the same day.
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