A Step-by-Step Guide to Understanding the Probate Process in Tennessee
When a loved one passes away, their estate–meaning their property, assets, and debts—typically must go through a legal process known as probate. Navigating this process can feel overwhelming, especially during what is already an emotional time. This guide walks through the key steps of probate in Tennessee to help you and your loved ones understand what to expect.
What is Probate?
Probate is the court-supervised process of administering a deceased person’s estate. During probate, the court ensures that the deceased person’s debts are paid and that their remaining property is distributed according to their will, or, if there is no will, according to Tennessee’s intestacy laws.
When is Probate Necessary?
Not all estates in Tennessee are subject to probate. If the deceased individual owned assets solely in their name, such as real estate or bank accounts, those assets will need to go through probate. However, certain assets, such as life insurance policies, retirement accounts, and jointly owned property, can bypass probate if they have a named beneficiary or right of survivorship.
Small estates valued under $50,000 can go through a simpler process using a Small Estate Affidavit.
Types of Probate in Tennessee
There are two main types of probate processes in Tennessee:
- Small Estate Affidavit: If the estate consists of $50,000 or less in personal property (not including real estate), you may be able to file a Small Estate Affidavit to avoid full probate. This simplified process is faster and less expensive.
- Full Probate: For larger or more complex estates, a full probate process is required. This involves multiple court filings, notices to creditors, and potentially months of administration.
Steps in the Probate Process
If your loved one’s estate requires a full probate, here are the steps you can expect the process to include:
1. Filing the Will
If the deceased left a will, it generally must be filed with the probate court in the county where they lived. This should be done within 30 days of death. Filing the will is a critical step to ensure that the deceased’s wishes are carried out and in order to legally begin the probate process.
2. Appointing a Personal Representative
After the will is filed, the court will appoint a personal representative. If the deceased nominated a personal representative (or “executor”) in their will, that person will likely be appointed. If there is no will, the court will typically appoint the nearest next-of-kin (such as a spouse, child, or sibling) who is willing to serve (the personal representative for an estate without a will is sometimes called the “administrator”). The personal representative is given authority over all of the deceased person’s assets that will pass through probate, and typically opens a checking account to deposit all of the deceased person’s funds and from which to pay expenses. The personal representative is fully responsible for handling the estate, including gathering assets, paying debts, and distributing the property to the rightful heirs or beneficiaries.
3. Notifying Creditors
One of the personal representative’s first tasks is to notify creditors of the estate. In Tennessee, this involves publishing a notice in a local newspaper in the county where probate is being administered and mailing direct notices to any known creditors. After the public notice is published, known creditors have the later of either four months to file a formal claim against the estate for any outstanding debts or 60 days from the date they receive direct notice. Unknown creditors have 12 months from the time of the individual’s death to file a formal claim.
Most, if not all, of the creditors can be found by going through the deceased person’s financial records, such as checkbooks and tax returns.
Creditors will often continue to send bills or invoices even after learning of the individual’s death. You should consult with a probate attorney before paying those bills, because creditors must follow a specific process before the are entitled to collect from the estate.
4. Inventory and Appraisal
In most cases, the personal representative must file an inventory of the estate’s assets within 60 days of being appointed by the court. This helps establish what the estate consists of, including real estate, bank accounts, investments, and personal property, and includes notifying any beneficiaries of the will. Sometimes, an appraisal may be required to determine the value of specific assets.
5. Paying Debts and Taxes
Before distributing any assets, the personal representative must use the estate’s funds to pay off valid debts and any taxes owed. Typically, these taxes are due the following April after the deceased person’s death. Tennessee no longer imposes an inheritance tax (as of 2016), but federal estate taxes may apply to larger estates.
6. Distributing the Assets
Once debts and taxes are settled, the personal representative can distribute the remaining assets according to the will or Tennessee’s intestacy laws (if there is no will). This step can be delayed if there are disputes among heirs or legal challenges, such as a will contest.
7. Timeframe for Probate
Probate in Tennessee typically takes between six months and a year, depending on the complexity of the estate and whether there are any disputes. Small estates can move through probate more quickly, while larger estates or contested matters can take much longer.
8. Avoiding Probate
Some families prefer to avoid probate due to the time and costs involved. While not always possible, there are strategies to minimize the need for probate, such as creating a living trust, naming beneficiaries on financial accounts, or holding property in joint tenancy with right of survivorship.
Common Challenges in Probate
Although probate can be straightforward, there are common challenges that can complicate the process. Some of these include:
- Will contests: If someone believes the will is invalid or was created under duress, they may contest it, leading to court hearings.
- Heir disputes: Family members sometimes disagree over the distribution of assets or the terms of the will.
- Unknown assets or debts: Discovering hidden assets or debts can also delay the process.
The Role of an Attorney in the Probate Process
While probate can sometimes be handled without an attorney, larger or more complex estates often benefit from legal guidance. An experienced probate attorney at the Ebbert Law Firm can help navigate Tennessee’s legal requirements, avoid costly mistakes, and resolve disputes efficiently.
Navigating the probate process in Tennessee doesn’t have to be daunting. By understanding each step and seeking help when necessary, you can ensure your loved one’s estate is handled properly and their wishes are honored. If you find yourself in charge of administering an estate in Tennessee, The Ebbert Law Firm can make the process as smooth as possible.