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Probate

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Probate Attorneys Serving Oklahoma State

One primary reason many Oklahomans plan their estates is to avoid the legal process known as probate. Through a comprehensive estate plan, individuals can make sure that their assets reach their heirs and beneficiaries without the probate process reducing them.

If you are ready to begin planning your estate or if you want to update your existing estate plan, understanding the probate process, how it could affect your estate, and ways to avoid it is crucial.

Contact Farha Law, PLLC, for a free consultation with an experienced estate planning attorney. During your initial consultation, we will discuss your estate planning goals and answer any questions you have about the process. Let us help you plan for your future.

What Is Probate?

Probate is the legal process of authenticating a deceased person’s will, identifying and taking inventory of their assets, paying debts and taxes, and distributing the remaining assets to the deceased’s beneficiaries and heirs. The county district court oversees the process, while an appointed executor or representative manages the estate.

After paying off the deceased’s creditors, the executor will transfer ownership of the remaining assets within the estate to the deceased’s family members. If the deceased has a will, the executor will follow it. However, if there is no will, the executor will distribute the assets in the estate according to Oklahoma’s intestacy laws found in 84 OK Stat section 213.

By having a robust estate plan in place, you can protect your assets from creditors and make sure they go to the beneficiaries you designate. Additionally, you can reduce the tax implications of receiving assets distributed through probate on your heirs.

When Is Probate Necessary?

Generally, probate is necessary when a person dies while owning assets solely in their name and without designated beneficiaries. Some common examples of when your estate may need to go through probate after your death include:

You own real estate, such as your home, solely in your name
You have bank accounts or investment assets without payable-on-death (POD) designations
You have personal property worth significant value that needs to be transferred to your heirs
You have outstanding debts that must be paid

However, even if probate is necessary, it does not mean all of your estate’s assets will go through the probate process. Certain assets can bypass probate, such as:

Property that is jointly owned with rights of survivorship, such as a jointly owned home, can bypass probate.
Life insurance policies and retirement accounts with designated beneficiaries can bypass probate.
Assets held in a properly executed trust can bypass probate.
Accounts designated with payable-on-death or transfer-on-death (TOD) beneficiaries can bypass probate.
According to 58 OK Stat section 393, estates worth $50,000 or less can bypass probate.

What Is the Probate Process in Oklahoma?

Oklahoma’s probate process is complex, with hundreds of statutes covering its intricacies. This is one of the many reasons why working with a skilled estate planning attorney is essential. Only a properly written and executed estate plan can protect your assets from probate.

In general, the state’s probate process features the following key steps:

Filing a Petition – The process begins when an interested party, usually a family member, files a petition in the district court of the county where the deceased resided. This petition requests the court to appoint an executor for the estate if the will does not designate one.
Notifying Heirs and Creditors – Potential heirs, beneficiaries, and creditors will receive notice after the petition is filed. Under 58 OK Stat section 331, creditors have two months after this notice to file claims with the estate.
Taking Inventory of Assets – The executor compiles a list of the deceased’s assets, including real estate, financial accounts, and personal property, and may hire an appraiser to determine the market value of specific assets within the estate.
Settling Debts and Taxes – Before distributing assets to heirs and beneficiaries, the estate must pay all its debts, taxes, and other expenses. Oklahoma does not have an estate tax. However, federal estate taxes may apply, depending on the estate’s value.
Distributing Assets – After the debts and expenses are paid, the executor distributes the remaining assets based on a will or the state’s intestacy laws.
Closing the Estate – The executor submits a final accounting of the probate process to the court for approval, and upon approval, the estate is officially closed.

How to Avoid Probate with an Estate Plan

Although probate distributes an individual’s assets to their heirs and beneficiaries after death, many view it as a last resort. Ideally, you will transfer your assets to your heirs and beneficiaries without needing them to go through probate, which can be costly and time-consuming. Some estate planning strategies that can help you avoid probate include:

Trusts – Placing assets in trusts allows them to pass directly to beneficiaries, bypassing probate.
Joint Ownership – Jointly owning property with rights of survivorship allows the property to automatically transfer sole ownership to the survivor upon your death.
Beneficiary Designations – Financial accounts, insurance policies, and retirement plans can transfer assets directly to named beneficiaries.
Transfer-on-Death Deeds – With a transfer-on-death deed, real estate owners can avoid probate by designating beneficiaries.

Common Probate Challenges in Oklahoma

An estate plan can effectively avoid some of the key challenges associated with probate that cause the process to be costly and time-consuming. Common challenges faced during probate include:

Contested Wills – Your heirs or beneficiaries may disagree about the validity of your will. These disagreements can include claims of undue influence, lack of capacity, or fraud. These disagreements are less likely to occur when assets are transferred directly to beneficiaries through trusts and payable-on-death accounts.
Executor Disputes – There may be conflicts over managing and distributing your estate’s assets. This can be a particular cause for concern if you named a family member as the executor.
Creditor Claims – Questions about the legitimacy of creditor claims against your estate may require lengthy and costly investigations.

The best way to avoid these probate challenges is to work with an estate planning attorney to prevent your assets from going through probate.

The Role of an Estate Planning Attorney

An Oklahoma estate planning attorney can provide valuable legal assistance throughout the estate planning and probate processes. Some of the services attorneys offer include:

Drafting wills and trusts to minimize the impact probate has on your estate
Providing advice on asset protection strategies, including the use of trusts
Explaining the tax implications of transferring certain assets to your beneficiaries
Assisting estate executors with their responsibilities during probate
Representing beneficiaries in disputes involving the estate

Contact Our Oklahoma Estate Planning Attorney

Probate can be a complex, costly, and time-consuming process that reduces the assets your heirs receive and causes unnecessary stress. Understanding the probate process, knowing which assets can avoid probate, and using estate planning strategies to minimize probate’s effect can help make sure your loved ones receive the assets you want.

It is never too late or too early to start planning your estate or update your existing estate plan. Contact Farha Law, PLLC for a free consultation with a skilled estate planning attorney in Oklahoma City. During your initial meeting, we will review your goals, outline a path to achieve them, and help you understand the impact probate could have on your estate.