The probate timeline
For most estates, administration is complete within the course of a year. For larger estates required to file a Federal estate tax return, a normal administration can span three years. If there is litigation, or other special issues, it is not uncommon for estates to remain open five years, or longer.
The first step is always filing the Will with the court, if there is a Will, and completing the Application to serve as Personal Representative. If there is no Will nominating a PR, there is a statutory priority as to who may serve.
Once appointed, the PR has thirty days to provide all "interested parties" with notice that the a probate proceeding has been initiated in the court. This form is called "Information to Heirs and Devisees," and it must be sent to all beneficiaries named in the Will, and to all parties who would have been intestate heirs, had there been no Will. The PR must then file a Proof of Delivery that the form has been provided to the proper parties. If someone intends to contest a Will, they must do so within the prescribed statutory period.
The PR must also immediately publish a Notice to Creditors in a newspaper of general circulation, putting creditors on notice that they must file their claims against the deceased with the Probate Court. Creditors may file claims for a period of eight months following the first date of advertisement, and the estate cannot be closed before the creditors' period has run. Any resulting claims must be satisfied or disallowed.
Within ninety days, the PR must file an Inventory and Appraisement of all of the assets owned by the decedent at date of death, a financial "snapshot." The schedules of the Inventory relate to the schedules of the Federal estate tax return, and values are determined in the same fashion. South Carolina no longer imposes estate tax, so no SC estate tax return is required, and the Federal exemption amounts now cover the majority of estates, so relatively few Federal estate tax returns are filed. For many estates the Inventory therefore becomes at least a partial record of "stepped up" fair market value cost basis for all assets passing through a decedent's probate estate. However, since non-probate assets are no longer required to be disclosed, it's important not to overlook adjusting the basis of those assets after death as well.
A great deal of work takes place in the first three months following a death. This is usually a very difficult time for family members.
Once all of the assets have been identified, and all claims have been prioritized, the PR then "settles" the estate, taking whatever actions are required to transfer title to the recipients of estate property, and accounting for all estate transactions to the Court. When administration is complete, the PR files a Petition for Settlement, a Proposal for Distribution, and a First and Final Accounting with the Probate Court. The PR must also provide a Notice of Right to Demand Hearing to all of the beneficiaries, who then have thirty days to request a hearing, if they are not satisfied with any aspect of administration. When the thirty days has run, or if all of the beneficiaries waive their right to a hearing, the Probate Court will then issue a Certificate of Discharge to the PR. If all interested persons are willing to sign a Waiver of all of the closing documents, the process can be shortened and streamlined.
This is a very abbreviated summary, focusing primarily on the sequence of the Probate Court forms. The PR also has duties of safeguarding and protecting the estate assets. She must also ensure all income tax filings are undertaken on a timely basis, both for the deceased as an individual, and also the estate as a separate entity. The PR must also negotiate and sometimes refinance debts, collect any debts owed the decedent, consider whether any post-mortem planning is indicated, and in general wind up the financial life of the decedent.
The first step is always filing the Will with the court, if there is a Will, and completing the Application to serve as Personal Representative. If there is no Will nominating a PR, there is a statutory priority as to who may serve.
Once appointed, the PR has thirty days to provide all "interested parties" with notice that the a probate proceeding has been initiated in the court. This form is called "Information to Heirs and Devisees," and it must be sent to all beneficiaries named in the Will, and to all parties who would have been intestate heirs, had there been no Will. The PR must then file a Proof of Delivery that the form has been provided to the proper parties. If someone intends to contest a Will, they must do so within the prescribed statutory period.
The PR must also immediately publish a Notice to Creditors in a newspaper of general circulation, putting creditors on notice that they must file their claims against the deceased with the Probate Court. Creditors may file claims for a period of eight months following the first date of advertisement, and the estate cannot be closed before the creditors' period has run. Any resulting claims must be satisfied or disallowed.
Within ninety days, the PR must file an Inventory and Appraisement of all of the assets owned by the decedent at date of death, a financial "snapshot." The schedules of the Inventory relate to the schedules of the Federal estate tax return, and values are determined in the same fashion. South Carolina no longer imposes estate tax, so no SC estate tax return is required, and the Federal exemption amounts now cover the majority of estates, so relatively few Federal estate tax returns are filed. For many estates the Inventory therefore becomes at least a partial record of "stepped up" fair market value cost basis for all assets passing through a decedent's probate estate. However, since non-probate assets are no longer required to be disclosed, it's important not to overlook adjusting the basis of those assets after death as well.
A great deal of work takes place in the first three months following a death. This is usually a very difficult time for family members.
Once all of the assets have been identified, and all claims have been prioritized, the PR then "settles" the estate, taking whatever actions are required to transfer title to the recipients of estate property, and accounting for all estate transactions to the Court. When administration is complete, the PR files a Petition for Settlement, a Proposal for Distribution, and a First and Final Accounting with the Probate Court. The PR must also provide a Notice of Right to Demand Hearing to all of the beneficiaries, who then have thirty days to request a hearing, if they are not satisfied with any aspect of administration. When the thirty days has run, or if all of the beneficiaries waive their right to a hearing, the Probate Court will then issue a Certificate of Discharge to the PR. If all interested persons are willing to sign a Waiver of all of the closing documents, the process can be shortened and streamlined.
This is a very abbreviated summary, focusing primarily on the sequence of the Probate Court forms. The PR also has duties of safeguarding and protecting the estate assets. She must also ensure all income tax filings are undertaken on a timely basis, both for the deceased as an individual, and also the estate as a separate entity. The PR must also negotiate and sometimes refinance debts, collect any debts owed the decedent, consider whether any post-mortem planning is indicated, and in general wind up the financial life of the decedent.
