How to Inventory and Distribute Estate Assets Among Multiple Heirs in California
Disclaimer: This article provides general information about California estate procedures. It is not legal advice.
Detailed Answer
When someone passes away in California, the probate court oversees collecting, valuing, and distributing the decedent’s assets. Below is a step-by-step overview:
1. Open Probate and Appoint a Personal Representative
An interested party (typically the named executor or an heir) files a petition with the county probate court to open probate. The court issues Letters Testamentary (if there’s a will) or Letters of Administration (if there’s no will), officially appointing the personal representative.
2. Notify Heirs and Creditors
The personal representative must mail written notice to all heirs and beneficiaries and publish a notice to creditors. See Cal. Probate Code § 9050.
3. Inventory and Appraisal
Within four months of appointment, the representative must file an inventory and appraisal of all probate assets, including real estate, bank accounts, investments, and personal property. See Cal. Probate Code § 8800. If more time is needed, the representative can request a court extension under § 8801.
4. Pay Debts, Taxes, and Expenses
The representative uses estate funds to pay valid creditor claims, funeral costs, taxes, and court fees. California sets claim deadlines and establishes payment priorities.
5. Plan and Petition for Distribution
After settling liabilities, the representative drafts a proposed distribution plan, allocating assets per the will or state intestacy laws. Intestate succession is governed by Cal. Probate Code § 6401.
6. Obtain Court Approval and Distribute Assets
The representative files a final petition. Once the court approves, it issues an order authorizing distribution. The representative then transfers deeds, transfers funds, and delivers personal property to heirs.
Helpful Hints
- Start the inventory process early to avoid deadline extensions.
- Hire a certified appraiser for real estate and valuable personal property.
- Keep organized records of all estate transactions and distributions.
- Maintain open communication with heirs to prevent misunderstandings.
- Consider consulting a probate attorney if the estate is complex or disputes arise.