What are the Steps of a Probate Case in Tennessee? 1. File Petition to Probate A Petition to Probate Testate (with a will) or Intestate (without a will) is filed. Must file original copy of will (if applicable) and the petition shall include the names, addresses, and relationships of all heirs and/or beneficiaries. 2. Personal Representative Appointment All heirs and/or beneficiaries must be sent a copy of the petition. At the hearing on the petition, a Personal Representative (“PR”) will be appointed and the estate is opened. A Personal Representative Oath must be signed and filed. 3. Letters Are Issued If the decedent died with a will, Letters Testamentary will be issued to the PR. If the decedent died without a will, Letters of Administration will issue. Once Letters are issued, the PR will begin identifying the decedent’s assets and any of the decedent’s interest in real property. 4. Execute Cost Bond The PR must execute a Cost Bond to obtain the Letters, which ensures the payment of court costs. 5. Open Estate Bank Account The PR will open an estate bank account and apply for an Estate Taxpayer Identification Number (EIN) on the IRS’s website. All cash assets of the estate and any proceeds from the sale of any estate property will be deposited into the estate bank account. 6. Execute Affidavit of Notice to Heirs The PR must sign and file an Affidavit of Notice to Heirs and/or Beneficiaries within sixty (60) days of their appointment. The Affidavit must include the names of all heirs and/or beneficiaries under the Will. 7. File TennCare Affidavit The PR must submit a Request for Release of Claim to the Division of TennCare, and must file TennCare’s Notice of Release of Claim with the Clerk. 8. File Inventory Unless waived by the will, an inventory of the estate’s assets must be filed within sixty (60) days of the appointment of the PR. A copy of the Inventory must be mailed to all interested parties. Alternatively, the heirs and/or beneficiaries can sign a Waiver of Inventory. 9. Notice to Creditors The Clerk’s office will mail a copy of the Notice to Creditors within four (4) weeks of the appointment. A copy of this Notice must be mailed to all known creditors. The creditors have up to a year to file a claim, and the estate must be opened for a minimum of four (4) months before the estate can be closed. 10. File Estate Tax Return If the estate owes taxes, an Estate Tax Return must be filed with the IRS and the PR must file a copy of the Tax Receipt or Certificate with the Clerk indicating that all inheritance taxes have been paid. The PR should consult a CPA to determine if an estate tax return is required. 11. Interim Accountings Depending on the County your probate case is in, an Interim Accounting may be due if the estate remains open after fifteen (15) months from the PR’s appointment. Annual Accountings will be due thereafter. 12. File Final Accounting Before an estate can be closed, the PR must file either a Final Accounting or Statements in Lieu. A Final Accounting shows in detail that all heirs and/or beneficiaries received what they are entitled to. Alternatively, all heirs and/or beneficiaries can agree to execute Statements in Lieu of a final accounting that demonstrate that everyone has received what they were entitled to. 13. Close the Estate Once all creditor claims have been released, all estate assets have been distributed, and a Final Accounting or Statements in Lieu have been filed, the estate can be closed. Once the estate is closed, no other actions can be taken on behalf of the estate by the PR.
What Is A Small Estate Affidavit in Tennessee? Under Tennessee Code Annotated § 30-4-101 et seq., a “small estate” is defined to mean an estate in which the value of the property does not exceed $50,000. As of July 1, 2022, a small estate affidavit cannot be used if the decedent had a will or if the decedent had any interest in real property. What Are the Benefits of a Small Estate Affidavit? Generally, small estate affidavits are more efficient and cost-effective compared to the typical probate process. A full probate requires a number of filing and takes at least four (4) months. On the other hand, a small estate administration is considerably less complex, requires less filings, and can typically be resolved much faster. Determining Property Value for a Small Estate Affidavit Under the small estate statute, property is limited to personal property owned by the decedent at the time of death. This does not include any personal property payable to a beneficiary other than the decedent’s estate. For example, if there is a life insurance policy for $100,000, this life insurance policy would not be considered the decedent’s property if there was a designated beneficiary. Conversely, if the life insurance policy did not have a designated beneficiary, then it may come into the estate and would count towards the decedent’s property value. What is Needed for a Small Estate Affidavit? After forty-five (45) days from the decedent’s date of death, a Small Estate Affidavit can be filed with the probate court in the county where the decedent resided at the time of their death. This Affidavit must include: (1) whether the decedent left a will; (2) a list of any unpaid debt; (3) a description of the decedent’s property including the property value; and (4) the names, ages, addresses, and relationship of any heirs. How Do I Get Started? While a Small Estate Affidavit is considerably less complex than a formal probate matter, it can still be complicated and confusing if you are not familiar with the process. It is always a good idea to consult an experienced probate attorney to help you through the process. We would be happy to help you navigate this process. Call our experienced probate attorneys in Nashville, Tennessee today 615.649.0110 to schedule a consultation.
How do you Probate an Estate in Tennessee? Probate is the process used under the law to settle the estate of someone who has died with the court’s supervision. A person is either appointed under a will as the executor of the estate, or, if there is not a will, the next of kin will typically be appointed as the administrator. The executor or administrator is approved by the court and given the legal authority to act on behalf of the deceased’s estate. The responsibilities of the executor or administrator include gathering and valuing the assets owned by the estate, paying necessary bills and taxes before the proceeds of the estate are distributed, and distributing the assets to the heirs or beneficiaries. Do You Have to Probate an Estate? Whether or not an estate must be probated depends on whether the deceased had a valid will, how much property is in the estate, and the wishes of all of the heirs or beneficiaries. An experienced probate attorney can walk you through the probate process from start to finish and determine if there are other more efficient and cost-effective ways to distribute an estate. What Other Options Are Available to Distribute Estate Property? In Tennessee, options other than opening a full probate estate include the following: (1) Small Estate Affidavit; (2) Probate for Muniment of Title; and an (3) Affidavit of Heirship. A Small Estate Affidavit is a more simple, cost-effective, and efficient way to distribute an estate. However, a Small Estate Affidavit is not an option if the decedent had a valid will or if there was any real property. Additionally, a Small Estate Affidavit cannot be used if the total property value in the decedent’s estate exceeds $50,000. If the only thing in a decedent’s estate is real property, then you may utilize Probate for Muniment of Title or an Affidavit of Heirship. Ordinarily real property does not come into a deceased’s estate. However, a decedent may bring real property into their estate if they included real property in their will. In that event, the executor may file a Petition to Probate for Muniment of Title, which only transfers ownership of real property. Similarly, an Affidavit of Heirship is used to transfer ownership of real property. However, an Affidavit of Heirship is not appropriate if the deceased included the real property in their will. While there are many factors to consider when deciding how to manage a loved one’s estate, it is important to consider whether the decedent had a valid will, whether the decedent had any real property, and the estimated value of the estate. Call our experienced probate attorneys at 615-649-0110 today to schedule a complimentary consultation.