Real Estate 411

1. Swears into office the executor or personal representative and gives them a certified document called Letters of Administration or Letters Testamentary.  These spell out his or her authority, or official rights, to: inventory, sell and distribute the estate.  Then the probate process officially begins after the executor files documents called Petition for Probate of Will and Appointment of Personal Representative with the probate court. 
 
When there is a will, the court validates it by issuing an order to admit it to probate. 
 
2. It is the executor's responsibility to notifying all living heirs and creditors of upcoming transfers of deed(s).  

• The court-appointed attorney should be able to provide an approved heir notification form.
• Distribute copies of the heir notification form to all heirs and creditors:
  • in person
  • by certified, registered or first class mail - unless otherwise directed by the court
  • publish notification in a local newspaper for heirs or creditors who are not able to be located

 
The court sets a specific date range and the executor must submit proof of notification to the probate court.  If notice is not completed in a timely manner, the entire probate process can be slowed, and the possibility of future ownership disputes increases.  
 
Warning: Personal Representative protect yourself against late-arriving claims. Do your best to come up with a plan, stick to it, communicate all notices properly (including maintaining all receipts from mailing of notices, newspaper clippings and other documentation of transactions) then after a certain time period has passed the executor is not usually vulnerable to additional demands or claims on the estate. 
 
3.  Again, the personal representative or executor is required by law to inventory the estate's assets.  This involves listing its personal items, money and real estate that have value against those on-going bills that still have to be paid (including the mortgage, utilities, insurance, etc.) not to mention settling tax bills that never stop.  Real estate and other expensive items must have a licensed professional determine their worth, and the findings ought to be included in the list that is presented to the probate court.
 
Sometimes, a list is available from the decedent  (the person who passed away) or another relative detailing the assets of the estate and their value. 
 
4.  Lastly, once the bills and taxes have been paid, possibly after selling assets (or liquidating them) such as: real estate, investments, jewelry, art, etc.; then the personal representative distributes the inheritance to the heirs.
 
The final step in the probate process is the distribution of the estate properly. 
 
Another way to say it is, the expectations of the creditors and heirs are met.  The bills are paid and heirs receive what was indicated in the will. 

Following is a typical order in which creditors are paid, those that have a valid claim on the estate. (The order may vary from state to state.)

1. Administration costs of the estate such as: appraisal fees, advertising for legal reasons, and the like.

2. Sums of money allotted or granted for a particular purpose also known as: family allowances.

3. Funeral expenses

4. Debts and taxes

5. Any and all remaining claims

In sum, whatever remains after the creditors are paid, is distributed to the beneficiaries or to the heirs named in the will. If you died without a will, the laws in your state determine how your property is distributed. 
 
 
Disclaimer: This outline of how probate works is by no means an all-inclusive step-by-step description - as laws vary from state to state. Instead, it is an overview intended to provide a general idea of the process involved. Therefore, it is the reader's obligation to fully understand the responsibilities of probate.