Heirs, Estates and Probate - Overview of Giving and Receiving Inheritance Gifts
The word 'heirs' refers to individuals entitled to inheritance property from a direct lineage relative who has died.
Inheritance gifts can include real estate, financial portfolios, cash, and personal belongings such as jewelry, collectibles, art work, and household furnishings.
Heirs are usually designated within decedents' last will and testament.
When individuals engage in estate planning and execute a last will, it is referred to as testate probate.
When decedents do not execute a will, it is referred to as intestate probate.
Probate is a court supervised process required within the United States.
Although regulated by the Uniform Probate Code, not all states utilize the same standards.
Some states require all testate and intestate estates to undergo the probate process.
Other states consider estates valued below $100,000 to be exempt from probate.
When decedents die intestate a judge appoints a probate personal representative to oversee estate management.
Estate administrators are required to determine rightful heirs.
The majority of Administrators are family members such as the surviving spouse, adult children, sisters, brothers, mother or father.
If legal heirs have disconnected from the family, but entitled to inheritance assets, the estate administrator may have to enlist the services of a forensic genealogist or private investigator.
These costs are paid through the decedent's estate.
As long as all rightful heirs are accounted for, probate generally takes three to nine months to complete.
Much depends on the estate value, type of assets involved, family dynamics and court caseload.
If all heirs agree to the terms of the decedent's last will, probate proceedings can commence.
If one or more heirs contest the will, probate can be suspended for several months or years.
Proper estate planning can reduce the potential for contesting a will.
This is particularly important for individuals who choose to disinherit heirs.
When executing a last will, it is crucial to include a disinheritance clause which states a reason why the heir was written out of the will.
Otherwise, the disinherited person can lay claim to inheritance assets either by contesting the will or through intestate probate laws.
Two types of property can be gifted through a last will and testament and include specific gifts and general gifts.
Specific gifts include personal property such as jewelry, heirlooms and collectibles.
General gifts are all items which remain after specific gifts are distributed.
General gifts generally make up the bulk of the estate.
Heirs receiving general gifts are referred to as "principal heirs.
" Every will must designate at least one principal heir.
Property which cannot be gifted through a will include individual retirement accounts, life insurance proceeds, payable-on-death bank accounts, transfer-on-death property, and real estate held in joint tenancy.
At present, inheritance gifts can be taxed at both state and federal levels.
Inheritance tax is currently undergoing a phase-out process and will be eliminated in 2010.
However, inherited assets can be subjected to gift and capital gains tax.
Heirs should consult with an estate planner or probate lawyer who specializes in inheritance tax to ensure they follow protocol established through the Internal Revenue Service.
Inheritance gifts can include real estate, financial portfolios, cash, and personal belongings such as jewelry, collectibles, art work, and household furnishings.
Heirs are usually designated within decedents' last will and testament.
When individuals engage in estate planning and execute a last will, it is referred to as testate probate.
When decedents do not execute a will, it is referred to as intestate probate.
Probate is a court supervised process required within the United States.
Although regulated by the Uniform Probate Code, not all states utilize the same standards.
Some states require all testate and intestate estates to undergo the probate process.
Other states consider estates valued below $100,000 to be exempt from probate.
When decedents die intestate a judge appoints a probate personal representative to oversee estate management.
Estate administrators are required to determine rightful heirs.
The majority of Administrators are family members such as the surviving spouse, adult children, sisters, brothers, mother or father.
If legal heirs have disconnected from the family, but entitled to inheritance assets, the estate administrator may have to enlist the services of a forensic genealogist or private investigator.
These costs are paid through the decedent's estate.
As long as all rightful heirs are accounted for, probate generally takes three to nine months to complete.
Much depends on the estate value, type of assets involved, family dynamics and court caseload.
If all heirs agree to the terms of the decedent's last will, probate proceedings can commence.
If one or more heirs contest the will, probate can be suspended for several months or years.
Proper estate planning can reduce the potential for contesting a will.
This is particularly important for individuals who choose to disinherit heirs.
When executing a last will, it is crucial to include a disinheritance clause which states a reason why the heir was written out of the will.
Otherwise, the disinherited person can lay claim to inheritance assets either by contesting the will or through intestate probate laws.
Two types of property can be gifted through a last will and testament and include specific gifts and general gifts.
Specific gifts include personal property such as jewelry, heirlooms and collectibles.
General gifts are all items which remain after specific gifts are distributed.
General gifts generally make up the bulk of the estate.
Heirs receiving general gifts are referred to as "principal heirs.
" Every will must designate at least one principal heir.
Property which cannot be gifted through a will include individual retirement accounts, life insurance proceeds, payable-on-death bank accounts, transfer-on-death property, and real estate held in joint tenancy.
At present, inheritance gifts can be taxed at both state and federal levels.
Inheritance tax is currently undergoing a phase-out process and will be eliminated in 2010.
However, inherited assets can be subjected to gift and capital gains tax.
Heirs should consult with an estate planner or probate lawyer who specializes in inheritance tax to ensure they follow protocol established through the Internal Revenue Service.