Disclaimer: This article is for general informational purposes and does not constitute legal advice.
Detailed Answer
When a loved one dies in Georgia, you must determine which assets remain after paying debts and fees. The probate process oversees this task. Follow these steps to calculate the net estate value under Georgia law.
1. Identify and Inventory Estate Assets
Collect all documents showing ownership at the decedent’s date of death. Typical probate assets include:
- Real property (homes, land)
- Bank and brokerage accounts
- Personal property (vehicles, jewelry, art)
- Business interests
- Other assets requiring court supervision
Under O.C.G.A. § 53-12-250 (link), the executor must file an inventory listing all probate assets and their fair market values.
2. List Debts and Administration Expenses
Next, document all liabilities payable from the estate, including:
- Funeral and burial costs
- Attorney and executor fees
- Court filing and probate fees
- Outstanding creditor claims (per O.C.G.A. § 53-7-6: link)
- State and federal taxes (income estate and inheritance taxes)
3. Follow Georgia’s Payment Priority
Georgia law sets the order for paying estate obligations. O.C.G.A. § 53-2-1 (link) directs distribution in this sequence:
- Administration costs (appraisal, bond premiums)
- Funeral expenses up to statutory limits
- Family allowance to spouse and minor children
- Taxes and tax administration expenses
- All other debts and creditor claims
- Residuary beneficiaries
4. Calculate the Net Estate Value
Subtract the total of debts, fees, and taxes from the gross value of probate assets. This result equals the net probate estate available for distribution. Non-probate assets—such as payable-on-death accounts, jointly held property with right of survivorship, and certain trusts—pass outside probate and do not factor into this calculation.
5. Determine Remaining Assets for Beneficiaries
After paying all approved claims and expenses, the remaining probate assets form the residuary estate. If there is a valid will, these assets pass to named beneficiaries. If there is no will, Georgia’s intestate succession rules under O.C.G.A. § 53-2-1 apply.
Helpful Hints
- Obtain professional appraisals for real estate and valuable personal property.
- Maintain detailed records of all payments, receipts, and filings.
- Review beneficiary designations on non-probate accounts to avoid conflicts.
- Monitor deadlines for creditor claims—Georgia requires notices within four months of probate notice.
- Consult a probate attorney if you face complex assets, disputes, or tax issues.