When a loved one passes away, their estate may have to pass through probate, a legal process in which the court oversees the distribution of their assets. In Tennessee, the monetary value of the estate plays a role in whether or not probate is necessary, but it’s not the only factor. Other determinants include types of assets involved, ownership structure, and whether the estate had an effective estate plan.
Understanding when probate is needed can help you know what to expect when a loved one passes away. Here’s everything you need to know about how the probate process applies to estates of various sizes in Tennessee.
What is Probate?
Probate is the legal process of settling a deceased person’s estate, including verifying the will (if there is one), paying off debts, and distributing remaining assets. The purpose of the probate process is to ensure that the deceased person’s assets are distributed according to Tennessee law or the terms of the will.
Probate is often a lengthy, expensive, and emotionally taxing process, and bypassing it when possible can ease the burden on the deceased person’s loved ones during what is already a difficult time.
Small Estates in Tennessee
For smaller estates, Tennessee offers a streamlined probate option called the “Small Estate Affidavit,” which can save time and reduce costs for the deceased person’s loved ones. However, this process is only available when:
- The total value of the decedent’s assets that would otherwise go through probate is $50,000 or less.
- There is no real estate involved, or all real estate passes directly to a beneficiary outside of probate (such as through joint ownership or a beneficiary designation).
The Small Estate Affidavit enables beneficiaries to bypass a full probate proceeding; however, they must still submit certain paperwork to the court. This filing cannot take place until at least 45 days have passed since the decedent’s death. After filing and receiving approval from the court, distribution of assets can begin.
When is Full Probate Required?
Although bypassing probate is ideal, sometimes it’s not an option. Here are the circumstances when the full probate process is required:
- The estate exceeds $50,000: If the estate’s assets (subject to probate) total more than $50,000, the full probate process is usually required.
- Real estate is involved: Real estate generally must go through probate if it was solely owned by the decedent and does not pass directly to a joint owner or a designated beneficiary.
- There is no will, or the will is disputed: If the decedent did not have a will or if there is a legal dispute about the will’s validity, the estate will go through probate to determine the correct distribution.
- The estate includes complex assets or debts: Complex estates or those with significant debt often need probate for a legal resolution.
Avoiding Probate Through Estate Planning
In Tennessee, proper estate planning with the help of a trusted attorney can help individuals avoid probate, even for larger estates. Some common strategies include:
- Revocable Living Trusts: Assets placed in a trust are managed according to the trust’s terms and avoid probate upon the owner’s death.
- Joint Ownership: Property held jointly with rights of survivorship passes directly to the surviving owner without probate.
- Beneficiary Designations: Designating beneficiaries on accounts, such as retirement plans and life insurance policies, allows these assets to bypass probate.
- Payable on Death (POD) and Transfer on Death (TOD) Accounts: Naming beneficiaries for bank accounts, brokerage accounts, and other assets allows them to transfer directly without going through probate.
Reach Out to the Ebbert Law Firm Today
Navigating the complexities of probate can feel overwhelming, but with proactive estate planning—such as creating a living trust or designating beneficiaries—you can often avoid probate entirely, regardless of the estate’s size.
If you’re currently going through the probate process or looking to establish an estate plan to protect your loved ones from future complications, reach out to the Ebbert Law Firm today. Our experienced attorneys can guide you through each step, ensuring your assets are managed according to your wishes and with minimal legal hurdles. Contact us today to learn how we can help you secure your family’s future.