Four Important Probate Questions

What happens if my mother passes away in California and the value of her estate is under $100,000?
If the deceased had real estate in California and it was valued at more than $20,000 but less than $100,000 then a Probate would be necessary.  However, this is called a Succession of Real Property which is a shorter Probate and less costly.  If the value of the property (that is not real estate )is under $100,000 in California, it is not considered an estate.  As such, credit cards in the deceased name would more than likely not have to be paid.  A Probate Code Declaration would need to be prepared by an attorney so that assets could be transferred to the heirs or beneficiaries.  A Probate Code Declaration is not used for real estate.  An heir is the person who gets assets when there is no will or trust.  A beneficiary is someone who is named in a will or a trust or has been named to receive assets in a bank account or brokerage account etc.  Many elderly people have ‘reverse mortgages’ which requires a sale of the property upon death.  Equity is determined by the sale price minus what is owed on the property.  If the value of the property in a reverse mortgage is over $100,000 then a Probate would be necessary. 

In a California Probate situation, how does an heir proceed when he lives in another state other than California? 
The heir should locate an attorney in California to file the Probate.  The California attorney can take the property through the Probate system and generally the heir does not need to go to court or come to California.  However, if the heir lives in another country other than the United States (when the decedent lived and had a property in California) then he/she would need to nominate another relative who resides in the United States to be the administrator of the Probate.  If a relative does not exist then the Public Administrator’s office would administer the Probate and once complete, the heir would receive the inheritance.  The typical time frame for a Probate is 6 months to one year.  Probates can take longer if complications occur as in other heirs coming forward.

Once a Probate is complete, can the administrator rent the property and refuse to sell?
The administrator has to distribute all monies equally among the heirs.  If any of the heirs want the property to be sold, then the administrator must sell.  If he/she refuses, then the heirs could remove the administrator or petition the court to force the sale of the property.  A consultation with an attorney would help to determine the best options for the heirs.

Does an inheritance have to be shared with a spouse?
No, an inheritance in California is not considered community property.  However, if the inheritance is deposited in a joint account with the spouse, it then becomes community property!  So, if a person does not wish to share an inheritance with his/her spouse, then the inheritance should be deposited in a separate account.