The Probate Timeline – A Simple Walkthrough for a Complex Process

4. Inventory and Appraise Assets: 1-3 Months

One major task that needs to be done during probate is the inventory of assets. For this you’ll need the official probate forms from your state as this document will become a part of the official records of the estate that must be filed with the final petition at the close of probate.

It’s important to note that some estate assets are not subject to probate, so check with your probate attorney as you compile your inventory.

This inventory helps the probate court determine the cash value of the estate, based in part on the date of death value or the alternative valuation date which is within six months after the date of death.

Generally, a professional appraisal is needed in order to determine these valuations, especially for real estate.

This step can take anywhere from a few weeks to several months, depending upon the size of the estate and how long it takes to arrange the asset appraisals.

5. Probate Property Sale: 2-6 Months (or More)

When the estate contains real estate you intend to sell during probate, the procedures of the probate sale depend upon whether you were awarded independent or dependent administration rights.

If you’ve been granted independent administration rights, there is little to no court oversight during the sale of probate property. The sale proceeds much like a traditional real estate sale; however, there are differences in procedure, contracts and disclosures. This is why having a probate experienced real estate agent can be extremely helpful.

A personal representative with independent administration rights is permitted to list, accept an offer, and close on the property sale without approval from the probate court. All of the probate sale paperwork simply needs to be included in the final accounting paperwork.

These probate sales follow the timeline of a traditional real estate sale, which currently takes an average of three weeks to receive and accept an offer and an average 30-day escrow period.

If you’ve only been granted dependent administration rights, the probate sale process is significantly different and longer. While you will be able to list the home and even accept an offer, you cannot complete the sale on your own.

The probate court will need to approve and oversee the sale with a court confirmation hearing. At the hearing, your probate attorney will present the offer you’ve accepted to the court — however, the court will not immediately accept this offer.

Instead, the probate judge will open the overbid process, which proceeds similar to an auction. Any interested buyers may then put in a bid for the property, starting at a percentage above the presented offer — as set by the court per state laws. The best offer is accepted and confirmed by the court during this hearing.

A probate sale with court confirmation adds another several weeks or months to the timeline. Just as in a traditional sale, receiving and accepting an offer takes several weeks. Once you’ve accepted one, you can schedule for the court confirmation hearing — often several weeks or months out.

In some states, you may even be required to remarket the property at the accepted offer price for 30 to 45 days before you can have your court confirmation hearing. All told, these extra steps add anywhere from a month or more to the timeline.

Whether yours is a simple probate sale or a more complex one requiring court confirmation, Palley advises hiring an experienced probate real estate agent:

“It’s nicer if the agent has significant probate experience so that they know the differences between a traditional sale and a probate sale. Finding an agent with accreditation or who can show that they’ve done a number of probate sales would definitely be advisable.”

6. Final Accounting: 1-2 Months

While you are selling the property and settling account debts, you need to keep track of all the paperwork generated while conducting business transactions on behalf of the decedent’s estate.

All of this documentation must be compiled and presented to the probate court for review. This process is generally known as the final accounting.

Although the final accounting forms and requirements vary from state to state, these forms basically present the financial information of the estate. This includes the initial cash value of the estate, the debts, fees and taxes paid, and deposits received — such as the proceeds from the property sale.

Along with the final accounting forms, you’ll also submit other documentation including your asset inventory, appraisals, and the probate sale contracts. You should also include any signed receipts for any tangible property you’ve distributed to beneficiaries, such as family heirlooms bequeathed in the will.

Once assured that all the paperwork is in order, your attorney will file another petition for a final hearing to distribute remaining funds and close the estate.

7. Final Distribution and Closing the Estate: 1-3 Months

During the probate process, you may distribute some assets, like tangible personal property. However, in most states you are required to wait to distribute financial assets — such as proceeds from the property sale — until the final probate hearing.

This is to allow the probate court to review your final accounting to ensure that every effort was made to identify creditors and pay the decedent’s debts before the estate is dissolved.

If a credible debt claim is made against the estate, the court can hold the executor personally liable for failing to properly notify the creditor or distributing funds to beneficiaries before all debts were paid.

Like the initial petition to probate, the number of weeks or months between filing your petition and that final hearing largely depends upon the probate court’s availability.

Provided all of your documentation checks out, the probate judge will rule for probate to be closed and the estate dissolved. At that time, you will use the estate funds from the estate to pay final expenses, including court costs and attorney’s fees. The remaining balance is then distributed to the beneficiaries and your duties and responsibilities as the personal representative are concluded.

The timeline of the probate process is definitely intimidating when you look at how long each step can take. However, many of these steps — such as sending the notice to creditors and the probate property sale — can happen simultaneously. With the help of a top-notch attorney and an experienced probate real estate agent, you can considerably shorten the probate timeline.

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