If you’re closely related to someone who has recently passed away, it’s likely that you’ll be in line to inherit at least a part of their estate. It can be a complicated process, depending on the circumstances. To make this process easier for you, we’ve outlined some things you need to know as a potential inheritor of a Tennessee estate.
1. Take the time to grieve
If you’ve just lost a loved one, the first thing you need to do is take the time to grieve. This could be overwhelming, especially if you were close to the person who has passed away. You may not even know how to react if you’ve been left a large inheritance. Taking the time to grieve the death of a loved one is important, and you should not be pressured into making decisions. Also, don’t rush through any of the legal processes outlined in this article. There’s no need to hurry to open an estate, and you should make sure that you’re given enough time to make well-thought-out decisions and take care of things properly. All of the necessary information will be available to you once you are ready.
2. Take the time to understand the terms of the will
Another important thing to do is take the time to understand the terms of the will. If there was a will, then you’ll need to know who was named as the executor (aka personal representative) of the estate. You’ll also need to know whether there are any special provisions in the will, like leaving a specific piece of property to a specific person. You’ll want to know where the original will is being kept, as well as the executor’s contact information so you can stay informed about the progress of the estate.
Once the will is probated, there will be a record of it that you can access at any time. You’ll be able to see the contents of the will, as well as the names of everyone who was named as a beneficiary. This is something that you’ll need to keep in mind when communicating with the people who were named in the will.
3. Find out if there is any debt included with your share of the inheritance
Debt follows the person who incurred it, so a person’s debt usually belongs to their estate- not those inheriting from them. However, if your loved one left you anything with a debt tied to it, you may have to figure out how to resolve the debt before accepting the inheritance.
This includes things like car loans, mortgages, or other debts that your loved one may have had when they passed away. Even if you inherit something with debt tied to it, you do not have to inherit debt. You can choose not to accept the item or to sell it and take whatever it is worth after the debt is paid.
It’s important that you know if there is any debt included with your inheritance so that you can plan accordingly. It’s possible that you could get a loan to cover the cost of the debt and then pay it off gradually over time.
In my personal and professional opinion, it usually makes sense to take over a loan on something that will appreciate, such as real estate, but not on any depreciating assets like a vehicle. However, this is something that will have to be decided in consideration of your personal situation.
4. Find out what happens during the probate process
The probate process is the process of opening a probate estate, gathering all assets owned, and distributing the assets from the estate. During the probate process, the executor of the estate will file the will and any other documents that might be necessary with the court and has the responsibility of distributing the assets according to the terms of the will. These documents will become part of the public record. The executor of the estate will open an estate account with the court, and you can check in on it and see what progress is being made as the assets are distributed.
5. Check for Inherited IRA Rules and Taxes
If you inherit retirement accounts from a loved one, you will need to make a decision about how and when to cash out the account.
While spouses can easily “roll” retirement accounts to the surviving spouse, this is not an option for anyone else. As the non-spouse beneficiary of a retirement account, you have two options: (1) take all money out immediately or (2) you can “stretch” the distributions up to ten years.
Because most retirement accounts are “tax deferred” accounts, you will want to explore the tax consequences of any retirement investment accounts that you inherit. If your family member invested into a 401k, IRA, or similar type of account, they did not pay taxes when contributing to their retirement. That means that taxes must be paid when the money is taken out.
The financial institution will usually help you by holding an estimated tax payment but you will still want to make sure you are aware of what you will need to pay at tax time to account for those inheritances, no matter how you took the distribution.
6. Allow time for the Executor to carry out their duties
As soon as you’re named as a beneficiary to a will and the estate has been opened through probate, you can expect that the Executor will begin to take care of things, such as contacting creditors and making arrangements for the sale of any real estate. It’s important that you give them some time to do what they need to do. Expect that it will take about a year for the entire process to run its course. This is a rough estimate and will vary depending on how complicated the estate is, how many assets there are, if any estate tax is due, and whether there are any potential disputes. The Executor will keep you updated on progress and let you know when you can expect to receive the inheritance.
7. Communicate with the Executor
Keep in regular communication with the Executor of the estate. Ask if there is anything you need to do or can do to help. If you have questions, make sure that you ask the Executor and get the answers that you need to the point you understand. You can also ask to speak with the attorney for the estate. If you are having issues with the Executor getting back to you, or you suspect there are difficulties, it may be worth consulting a lawyer on your own.
8. Decide how you want to handle your share
Before you get a check, decide how you want to spend any money that you receive. Maybe you and your deceased loved one had already talked through what they hoped would happen with any funds they left you. Many people have a financial goal that their inheritance will help them reach, such as buying a house or investing in their own retirement. Some families use the money to take a trip together and make memories. Having a plan is the best way to make sure that your loved one’s legacy is honored.
9. Update your Plan
One of the most important things to consider is that receiving an inheritance could cause your own estate planning to need to be updated or revised. If you are currently the beneficiary of a trust or other estate planning document, you should contact your estate planning attorney to determine whether or not you need to make any updates.
If you are looking for a Middle Tennessee probate attorney or to create a Tennessee will, click here to schedule an initial call with us.
Probate is the name for the legal process of distributing assets after someone passes away. These assets can include bank accounts, real estate, vehicles, retirement accounts, life insurance, and financial investments. Before the assets can be distributed, however, they must first be gathered and used to pay creditors.
After that, the heirs can finally receive their distribution of the estate. However, even then, there are several factors that can still delay the distribution process. In our practice, it is common for probate to last about nine months. In more complex cases, probate can easily last several more months or even years. These delays ultimately mean less money and more headache for the surviving family.
Let’s go through the factors that cause delays in probate, and discuss what steps can be taken to minimize the delay.
1. Passing away without an Estate Plan
If you pass away without an estate plan, your loved ones will have to go to probate court. The court will appoint someone among them to be the “Personal Representative.” The Personal Representative will be responsible for contacting all of the financial institutions about your death. They will also be responsible for using your funds to pay creditors and ultimately make distributions to your heirs.
When there is no estate plan, the process for appointing a Personal Representative can be seriously delayed. The family will have to come to a consensus on who the Personal Representative will be before they present their choice to the court. Moreover, whoever is selected as Personal Representative is often not prepared for the role, as they had not been told to expect it. The process of going through all of your finances and contacting all of your financial institutions might be overwhelming for them, especially if they did not know your finances very well. Moreover, they will be responsible for mediating tension between the family, which is made even more difficult if members of the family do not think you explicitly wanted them to serve as Personal Representative.
Having an estate plan would minimize all of these consequences and delays. By having an estate plan, your family will already know who you want to represent your estate, which will make the process for appointing a representative much smoother. The person you select to represent your estate will also be better prepared for the role, as they are aware that they will one day need to fulfill the role.
The best way to minimize delays in probate is thus to have a clear estate plan in place, and to let your family and loved ones know about your intentions.
2. Family Tension
Even with an estate plan, family dynamics can still play a major role in probate. For example, if the only major asset that you have at the time of your death is your house, and one of your heirs would like to live in it while the other heirs would rather sell it and keep the sale value, tension will ensue and attorneys may need to get involved. All of this will ultimately lead to a delay of the probate process, and may ultimately divide the family in an irreparable way.
Feuds such as the one described happen even in the most loving of families. To avoid these feuds, it is important to not only have an estate plan, but to have one drafted by an experienced estate planning attorney. An experienced estate planning attorney will be familiar with cases such as the one described and will be able to help you think through exactly what you would want to happen if these cases occur. Your estate plan will thus be better able to help your family navigate your precise wishes for your assets, ultimately easing tension and expediting the probate process.
Hiring an estate planning attorney to draft your estate plan is one of the most important steps you can take to minimize probate delays.
3. Financial Complications
If you keep your finances private, it will be difficult for your intended heirs to know what to expect after you pass away. They may not even know where you bank and what financial investments you have. The more difficult it is for them to know your finances, the more difficult it will be for them to notify your financial institutions of your death and gather accounts.
Furthermore, if you are in debt or are not paying your taxes, your Personal Representative will be responsible for using your assets to pay your creditors and the IRS. This can cause serious delays to the probate process, especially if the Personal Representative was unaware. Creditors will ensure they receive their payments by filing claims against the estate through probate court. These claims ultimately slow down the probate process as each claim requires a hearing before a judge.
To save your family time, headache, and grief after your death, it is important that you keep your finances in order. Pay off debt when you can, and keep a clear record of it. File your yearly taxes appropriately. Let your loved ones (especially your Personal Representative) know of your finances and how to contact each financial institution in case something happens.
Even in the best of cases, probate takes a while. To minimize delays, we recommend having an experienced estate planning attorney draft your estate plan, clearly telling your loved ones of your intentions, and keeping your finances in order as much as possible. Your loved ones will already be filled with grief after your death. The best gift you can give them is preparation.
Here at Graceful Aging Legal Services, we offer software that can help our clients keep their estate in order. Contact us at 615-846-6201 or hello@galsnashville.com if interested.
If you’re reading this, you might be facing the loss of a loved one and the process of trying to figure out what happens or what to do with their belongings. It’s a journey I’ve been through myself, and while it can feel overwhelming, I’m here to walk you through it step by step. This guide will help you understand if probate is necessary, how it unfolds in Tennessee, and what to consider when hiring a probate attorney. Let’s tackle this together.
What is Probate?
Probate is essentially a legal roadmap for transferring property that belongs to a deceased person into the name of a living person, often a relative, through the court system. While many people can avoid probate by using estate planning tools, it’s not always possible. Under very specific circumstances, it is a good idea to go through probate!
Does My Loved One’s Estate Require Probate?
Not every estate needs to go through probate. If your loved one had a funded living trust, or if their assets were held in joint tenancy or had designated beneficiaries, you might be able to bypass probate. However, if they owned assets solely in their name without a beneficiary designation, probate will likely be necessary. It’s a good idea to review the asset structure your loved one had in place to determine the best course of action.
If you aren’t sure what your loved one owned at the time of their death, it is a good idea to reach out to an attorney. Our attorneys at Graceful Aging Legal Services, PLLC can run a search to find out where assets might be held and if there are any likely outstanding bills. In the meantime, you will want to collect any mail that comes to the deceased to see if you can locate any assets.
The Probate Process in Tennessee
In Tennessee, the probate process begins by filing a petition with the county court where your loved one lived. The court will appoint a Personal Representative (often named as executor if there is a will) to oversee the estate. The Personal Representative plays a crucial role in ensuring that each step is completed accurately and in compliance with state laws.
We like to explain it the Personal Representative’s job as a three-step process:
Gather assets. This includes anything that is owned individually by the deceased person, including personal property from their residence, money in bank accounts, vehicles, and more. The Personal Representative (also called an “Executor”) will make an inventory of what your loved one owned so that everyone can be aware of what is in the estate. It’s important to remember that even if you are listed as the executor in a Will, you do not have any authority until the court officially appoints you. The Personal Representative will open an estate account with an FDIC insured financial institution in order to deposit assets as they are collected or proceeds from things that are sold.
Pay costs and creditors. In Tennessee, there is a specific formula for how probate estate funds are applied to expenses and debts. First, the costs of administration are paid. This includes all court costs, attorney fees, and other fees like storage or shipping. Second, funeral expenses can be paid. Third, any taxes or government claims are paid, including TennCare. Last, any debts that are filed against the estate and validated by the court are payable to those creditors. These are usually things like final medical expenses or credit cards.
Distribute to inheritors. Once all of the deceased’s assets are gathered and costs and creditors are paid, the Personal Representative will know what the final balance of the estate account is. In some cases, there isn’t enough money in the estate to pay all of the bills, and that should be discussed with the estate attorney. Otherwise, it’s time for what everyone has been waiting for- getting their money! The Personal Representative will divide the remaining balance into shares based on the Will or the law and distribute those amounts to those who inherit. The estate attorney will work with the Personal Representative and inheritors to collect statements that everyone has received their share, or if that cannot be done, to complete an accounting of the estate. Once all the paperwork is completed by the Personal Representative and inheritors, the estate attorney will ask the Court to close the probate estate.
Duration and Costs of Probate in Tennessee
The timeline for probate can vary widely, typically ranging from six months to over a year, depending on the estate’s complexity and any disputes that might arise. As for costs, these can include court fees, attorney fees, and executor fees, all of which depend on the size and intricacy of the estate. It’s important to budget for these expenses as they can add up quickly.
In most counties, just filing probate is $300-500. So if you can avoid probate while getting your loved one’s assets distributed appropriately, it’s a good idea. Most attorneys charge hourly for probate work, which can add up quickly. However, the estate attorney should have efficient processes to keep the costs as low as they reasonably can.
You can help the estate attorney by turning in all of your paperwork on time, replying to their questions, and helping to get documents signed by any other inheritors. We like to say that the more families delay or fight, the more money probate lawyers make. While differences are normal in families, remember that the more time an attorney spends dealing with disputes, the more money they make and less money is available to the inheritors.
Choosing a Probate Attorney in Tennessee
Finding the right probate attorney is like choosing a trusted partner for this journey. You’ll want someone experienced, transparent about their fee structure, and communicative. It’s essential that they’re approachable and willing to provide regular updates. If you have friends or family who have been through the process, ask them for recommendations. Check out google reviews and check the Board of Professional Responsibility’s attorney search to make sure an attorney is licensed and in good standing before you sign an agreement for them to handle your case.
Conclusion:
Probate can feel daunting, but with the right knowledge and support, you can manage your loved one’s estate with confidence and care. Remember, you’re not alone in this process. With a reliable attorney and a clear understanding of the steps involved, you can honor your loved one’s wishes and ensure their estate is handled with the respect it deserves.
If you have questions about transferring the assets of your deceased loved one, we’re here to help. Feel free to reach out to us for more information about your specific situation.
When one spouse wants to disinherit the other, but they are still married, it can be a complicated process. In most cases, disinheriting a spouse is only possible if you have a valid prenuptial agreement or if you are divorced.
Let’s illustrate this with an example:
Jack and Jill have been married for five years, and have one child together. Their house was purchased by Jill before they were married, and Jack’s name was never added to the deed.
Jill recently discovered that Jack is cheating on her with the Instacart shopper. She and Jack are now separated and have started the divorce process, but she wants to make sure that if she dies before the divorce is final that Jack won’t get anything from her.
What can Jill do?
Jill can disinherit her spouse after the divorce
Unfortunately, Jill cannot disinherit Jack until she files for divorce. Tennessee law does not allow you to disinherit your spouse- even if you write a will that says that! My advice is to get divorced as quickly as possible. Unless divorced, Jack is entitled to his share.
The good news is that once divorce papers have been filed, there will be an automatic injunction that specifies that the pair no longer have spousal rights on the property through marriage. This is primarily to protect things like bank accounts, real estate, relationships with the children, and health insurance coverage. However, all that does is prevent money from being spent by either spouse outside of regular expenses. Jill won’t be able to do anything, like estate planning, until after the divorce has been settled or through special permission from a judge.
In the meantime, there are still a few steps Jill can take:
Utilize her prenuptial agreement
Jack and Jill signed a prenuptial agreement prior to their marriage. In it, they waived the right to inherit from each other. All Jill needs to do now is to rewrite her will to specifically omit Jack.
Divide assets into separate trusts
Jill can establish a trust under her name and place the house in it. Since Jack’s name isn’t on the deed or on the trust, he has no right to the house if Jill were to pass before the divorce is finalized.
Rewrite her will
Jill can rewrite her will so that Jack only gets what he is entitled to by law, called his elective share. In Tennessee, spouses are entitled to a homestead allowance, a year of support, and elective share. The elective share amount depends on how long you are married.
Hire a family law attorney
The divorce will go much quicker with the help of a family law attorney.
Jill can get a jump start on planning her estate.
Finally, if Jill is preparing for a divorce, she can take advantage of all the legal documents at her fingertips and get a head start on creating the estate plan she desires. Once her divorce decree is finalized, she can meet with her lawyer and sign the document to make it valid.
Are you getting a divorce and want to start over with your own will and estate plan in Tennessee? Are you looking for a referral to a family law attorney? Let us know! We are happy to help you make plans for your new life. Not sure where to start? Give us a call. We offer a complimentary 15-minute call to see if we are the right fit for you and your situation. You can schedule your call by clicking here.
When you aren’t clear about your wishes, you leave a blank space for your loved ones to try to fill in. This can be incredibly stressful to them – even if you’ve expressed your wishes to them but didn’t write them down – so it’s important to know your wishes ahead of time. Learn what could happen to you if you don’t make your wishes known.
What Happens if You Become Incapacitated in Tennessee?
If you become incapacitated in Tennessee (a temporary coma, for instance,) and have no medical power of attorney set, your loved ones may have to go to court and then a judge will decide who can make medical decisions for you if you’re unable to communicate your wishes.
Trying to determine your wishes after you can no longer express them can be an extremely stressful time for your family, which is why it’s so important to communicate your wishes ahead of time, just in case anything happens to you.
What Happens if You Die without a Will or Trust in Tennessee?
If you die without a will, that is called “intestate.” This means that whatever inheritance you leave behind, including your property, is subject to Tennessee intestate succession laws. Intestate laws typically leave your property to your surviving spouse and/or children, but parents, siblings, nieces, and nephews could become eligible too.
Here’s a quick breakdown of what would happen in Tennessee if you are married or have children:
If you have a spouse but no children, the spouse would inherit your entire estate, even if you’re separated.
If you have a spouse and children, the estate would be divided equally among all parties (except that the spouse can receive no less than 33% of the overall estate).
If you only have children, your estate would be split equally among all the children.
Keep in mind that only your biological and adopted children will inherit from you if you do not have a will. If you would like to leave part of your estate to step-children, foster children, godchildren, or other children who are close to your heart, you’ll want to make plans for that in your will or through non-probate beneficiary designations.
Here’s what would happen if you died unmarried and without children:
If you have a parent, the entire estate would go to your parent(s).
If you have sibling(s) but no living parents, the estate will be split equally among your siblings.
If you have no parents or siblings, the estate will be split equally among your siblings’ children.
If you’ve none of the above, the estate would be split equally among paternal and maternal aunts and uncles.
You don’t have to die to see how this one might end if you don’t write your decisions out!
Who Makes Funeral Decisions if You Die in Tennessee?
Similar to the above, if no one has been legally designated to make funeral decisions on their loved one’s behalf, it falls to the next-of-kin, which would be the spouse or adult children. Once the family member takes responsibility for making and paying for their loved one’s funeral arrangements, they sign a legal contract that obligates the funeral home to follow instructions from that family member alone.
Make sure you tell your family what you want so there’s a consensus during a difficult time..
What if there are no next of kin?
If there are no next of kin (as defined above) and no personal representative, any other person willing to assume responsibility and arrange the funeral (including the funeral director) can make funeral decisions, after attesting that a good faith effort has been made. As for your estate, if no family can be found it will ultimately be turned over to unclaimed property.
Learn More from Graceful Aging Legal Services
Don’t leave a blank space for your family members to fill in regarding your end of life wishes. Don’t keep them second-guessing. Instead, leave something that people can read like a magazine to know what you want your life – and death – to be like. Want more tips like this one? Sign up for our newsletter!
Probate laws in Tennessee play an important role in the orderly distribution of a person’s assets after they die and help to settle their affairs. The probate process typically begins when you hire an attorney who will file a petition on your behalf in the appropriate probate court, initiating the legal proceedings.
The court then appoints a Personal Representative (aka the executor) to oversee the estate, and their primary responsibility is to manage the assets and debts of the deceased loved one. Notification of heirs and beneficiaries is a critical step to ensure all interested parties are aware of the probate proceedings.
If you are nominated or appointed as a Personal Representative, there are several things you’ll want to keep in mind to ensure a seamless probate process.
Probate Court Jurisdiction and Venue
In Tennessee, your attorney will file for probate in the county where your loved one lived at the time of their death. This is wherever they consider to be their permanent home.
Across Tennessee, your probate case may be heard in a different type of court than a friend’s in another county. For example, in Davidson County the Circuit Court hears probate cases while in Rutherford County they are handled in General Sessions Court. Many counties process probate petitions through their Chancery Court. An experienced probate attorney will be able to tell you the procedure in the county where you live.
Tennessee Intestacy Laws
Intestacy laws in Tennessee come into play when there is no valid will. These laws dictate the distribution of assets when a person passes away without explicit instructions, outlining the order of inheritance among surviving family members.
Myth-busting: Many people are concerned that if they do not have a will, the government will take their belongings instead of their family. While there are certain exceptions where the government can claim funds that are owed to them, your closest family members will inherit if you do not have a will.
Validity and Execution of Wills
Tennessee recognizes several types of wills, from handwritten wills to the ones you think of that are typed up and signed in a lawyer’s office in front of a notary. Each type of will has different requirements in order to be “admitted to probate.” This just means that the court needs to make sure that the will is authentic before it is acted on.
The law is specific about how that authentication can happen. Probate laws delineate the requirements for a valid will and the various types of wills recognized in the state. Ensuring compliance with these stipulations is imperative for a seamless probate process.
Probate Inventory and Appraisal
Part of the probate process involves creating an inventory of the deceased’s assets and how much those assets are worth. This allows the heirs and beneficiaries to know what to expect in terms of inheritance and for the court to require insurance to protect those funds if needed.
Many people are concerned about their privacy if the inventory is made a part of the public record, but informal inventories are often used instead of filing as part of the public record. This can be written into your will or agreed to by your family after your death.
Creditor Claims and Debts
To handle creditor claims and debts, personal representatives must notify creditors and prioritize the settlement of outstanding debts so ensure that the distribution of assets is fair and equitable.
One primary responsibility of the personal representative is to pay any valid claims of the estate. Your attorney will assist you in notifying creditors, both by mail and in the newspaper, so that they can come forward and file claims if there is money owed. Your attorney will guide you through the process of evaluating whether those claims are valid and paying them (if appropriate).
Estate Administration and Accounting
Once all assets have been gathered and all creditors have been paid, it’s time to distribute the funds. An accounting, whether formal or informal, will assist the personal representative in getting the numbers right. Depending on family dynamics and the requirements of the will, the accounting may or may not need to be filed with the Court’s Clerk.
While the term “accounting” sounds scary, all it means is that you are keeping track of what funds come into and out of the estate. Your attorney will assist you in preparing the accounting if one is required by the court.
Will Contests and Disputes
Probate laws in Tennessee address the possibility of will contests and disputes, outlining the grounds for contesting a will and the specific procedures involved in resolving such disputes.
Probate taxation is an overview of estate taxes, potential tax liabilities, and exemptions are governed by Tennessee probate laws. Understanding and following the laws around taxation ensures proper estate planning and compliance.
Although Tennessee no longer has an inheritance or estate tax, taxes are still an important process of probate and estate planning. As part of the probate process, the personal representative will be responsible for filing the deceased person’s final income tax return, as well as any federal estate taxes. There may also be state tax returns due based on what types of assets the decedent had.
Your attorney and accountant will assist you with maintaining the deadlines and knowing what these requirements are.
Closing the Probate Estate
In the final phase of the probate process, assets are distributed to heirs and beneficiaries, and the personal representative or administrator is officially dismissed of their duties. Take some time to celebrate – you’ve made it!
Common Issues and Pitfalls
The probate process takes a lot of time and effort (and maybe three hundred takeout coffees). The costs include court filing fees, attorney fees and possibly personal representative fees, which adds up. It’s important to have an attorney who knows the laws and the best way to complete the process efficiently so as much money goes to the people that your loved one wanted to have it.
Most people want to know how long the process will take or have heard horror stories out of other states (looking at you, Florida!).
In Tennessee, it can take as little as six months, depending on when your person died, how fast the court moves, the assets involved, family dynamics, and other variables. In most cases, it takes at least a year, and often more. If everyone gets along, it’s not such a bad process, and the attorney will handle much of it for you.
We also encourage the use of an after-loss professional like Sunny Care Services who can take some of the most frustrating tasks off your plate.
If you’ve become the Personal Representative for your loved one’s estate and want to prevent a lengthy probate process, it’s a good idea to start planning now. Talk with an attorney who has experience with probate and estate planning. (Psst – that’s us!)
Recent Developments in Tennessee Probate Laws
Probate laws are subject to change, and recent developments, including legislative updates and notable court decisions, can impact the probate landscape. Staying informed about these changes will help you navigate the probate process instead of asking, “Is it over now?” when you’re only halfway through.
Fortunately, Graceful Aging Legal Services can help you stay informed on such topics with our newsletter. Sign up today!
