| When someone dies without a trust the title to their assets must be changed to their beneficiaries or heirs. This is a legal process filed in the Chancery Court called probate of will or administration of estate. An estate can be with or without a will. A will is a written instrument signed by the Testator or Deceased that directs how the estate is to me distributed. If you die without a will, your estate must be administered.
Administration of Estate
A myth exist that all is lost if a person dies without a will, that the government will receive everything and the heirs receive nothing. This myth is not true. When someone dies without a will the legal preceding is called Administration and is similar to Probating a will. The assets of the Estate are distributed to the deceased heirs according to the laws of the State of Mississippi. For example if the person is married the Estate descends to the Spouse and Children in equal shares. For example, if the Deceased has two children, the spouse and each child receive one third (1/3) your assets.
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The administration is similar to probating a will, except the cost is
higher due to posting of bond, accounting to the court and appraising
the value of the estate. A simple estate generally requires around six
months to complete and cost approximately one third more than probate.
Probating a Will
To
ensure your Estate is distributed as you choose, the best solution is
to make a will. Some think the cost of probating will exceed the value
of the estate. Again, this is an untrue myth. The cost of Probating
varies according to the size. Most simple Estate without sale of
property and litigation cost in the range of $3,000.00 to $5,000.00 at
the present time.
Probate begins by filing the Will with the
Chancery Court in the county where the Deceased lived, died or owned
property. After the Will is admitted to Probate, the Chancery Judge
appoints an Executor/Executrix named in the Will. The
Executor/Executrix must take an Oath to faithfully perform require
duties.
The Executor/Executrix is charged with the duty of
gathering all of the assets of the Deceased, locating and notifying all
Creditors and paying all legitimate debts. If the Executor knows of the
existence of a Creditor, a notice must be sent advising the Estate is
open and the time limit in which a claim must be filed. A Notice to
Creditors must be run a local newspaper of general circulation in the
County. The time to file a claim is 90 Days from date of first
publication. For example, if the first date of publication is May 1 the
claim must be filed by August 1. Claims filed after the 90 days are
barred and assets distributed lien free.
After locating all the
property of the Estate, paying actual claims of Creditors and the time
for Notice to Creditors has run the Estate is ready to be closed. The
Estate is closed by a Petition to Close Estate and Dismiss
Executor/Executrix and after approval by the Court the assets are
distributed to Beneficiaries of the Will lien free. A simple Estate
without complication requires six months to close from date of filing.
In
some cases, disagreements occur between heirs and or creditors
requiring litigation. In such situations, the estate may remain open
for years.
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