Disclaimer: This article is for educational purposes only and does not constitute legal advice.
Detailed Answer
Under California law, the probate process ensures that estate expenses and creditor claims are addressed before any assets reach heirs. Key steps include:
- Opening Probate and Appointing a Personal Representative. A petition filed in the decedent’s county probate court initiates probate. The court appoints a personal representative (executor) who has authority to manage estate affairs, including paying debts and expenses (Cal. Prob. Code § 6400).
- Inventory and Appraisal. Within 60 days of appointment, the representative must file an inventory and appraisal of estate assets. This step identifies property available to pay claims and expenses (Cal. Prob. Code § 8800).
- Notice to Creditors. The representative must publish a Notice to Creditors once a week for three consecutive weeks in a local newspaper. Known creditors must also receive mailed notice. This step starts the statutory claims period (Cal. Prob. Code § 9100).
- Claims Filing Deadline. Creditors have four months from the first publication date to present claims, or 60 days from personal notice, whichever is later (Cal. Prob. Code § 9200).
- Review and Allowance of Claims. The personal representative reviews each claim and either allows or rejects it. Allowed claims become liabilities of the estate; rejected claims may lead creditors to petition the court (Cal. Prob. Code § 9350).
- Payment of Administration Expenses and Claims. Before any distribution, the representative must pay estate administration costs (e.g., funeral expenses, court fees, attorney fees) and allowed creditor claims. California law sets a payment priority order: administrative expenses first, secured claims next, then unsecured claims (Cal. Prob. Code § 11420).
- Final Accounting and Court Approval. The representative files a final account showing all receipts, disbursements, and payments of claims. The court then approves the accounting and authorizes distribution (Cal. Prob. Code § 11620).
- Distribution to Heirs. After court approval and payment of all debts, expenses, and allowances, the representative distributes remaining assets to heirs under the will or California intestacy law.
Helpful Hints
- Keep detailed records of all notices sent, payments made, and claims received.
- Publish notices early to start the claims deadline running and avoid delays.
- Consult Probate Code §§ 9100–9300 for rules on presenting and handling creditor claims.
- Review fee schedules in Probate Code §§ 10800–10807 to estimate executor and attorney fees.
- Obtain bond for the personal representative when required to protect the estate.
- Consider seeking professional guidance from a probate attorney or certified paralegal for complex estates.