What is probate? Probate is a court-supervised process with three goals: (1) to transfer a deceased person's assets to the legal heirs or beneficiaries named in the will; (2) to determine and pay federal and Wisconsin estate and income taxes; and (3) to determine creditor's claims. There are several different types of probate proceedings, depending upon the size and complexity of the estate. "Formal" administration is supervised by the probate judge while "informal" administration is supervised by the Register in probate What is a personal representative? A personal representative is an individual or corporation named in a will or appointed by the court to oversee the probate of an estate. The main duties of a personal representative are to: Identify and collect the assets of the deceased Manage the assets during the administration of the estate Determine the rights of any surviving spouse under marital property laws Pay expenses of administration, taxes, debts and claims; and Distribute the remaining assets to those entitled to receive them How much does a personal representative get paid? The personal representative is entitiled to be reimbursed for all necessary expenses in managing and settling the estate, subject to court approval. Besides expenses, the personal representative can receive 2 percent of the inventory value of property for which the personal representative is accountable (less any mortgags or liens) or such other amount as may be either agreed to by the decedent or beneficiaries or approved by the court. How are attorneys paid for probate matters? The fees charged in probate matters vary from attorney to attorney. Lawyers may charge on an hourly or fixed-fee basis. Attorney fees must be approved by the judge in formal probate proceedings. Does probate involve any tax decisions? Yes. Federal and Wisconsin estate and income tax planning may be involved in an estate. The size of the estate may not be what determines the tax decisions to be made. You should discuss probate-related tax issues with a lawyer. How are estate taxes determined? The federal and Wisconsin estate taxes are applied to the taxable value of a person's total property at death. The personal representative must pay these taxes from the estate within nine months of the date of death. In general, there are no estate taxes due on property distributed to a surviving spouse. In addition, the first $600,000 of assets are exempt from the federal estate tax, and legislation pending in Congress may increase this amount. Wisconsin inheritance tax was abolished for persons dying after Jan. 1, 1992. Wisconsin estate tax is payable only if a federal esate tax must be paid. Can you avoid probate? You may avoid probate in certain instances. For example, no probate is necessary if individually owned property is no more than $10,000 in value. Property titled in joint ownership or in a "living" trust is not subject to probate. However, even though probate is not required, you may have to report and pay federal (and possibly Wisconsin) estate taxes. Disclaimer: This summary offers basic legal information only and does not offer legal advice. If you have legal problems, please seek legal advise; only an attorney can advise you on how the law applies to the specific facts of your situation and in your location. Top

AA Sabel Law Office S.C. 76 South Macy Street, Fond du Lac, Wisconsin 54935-4131 920-922-6800 Fax: 920-922-6819 Contact Us