CHAPTER 10: INFORMAL PROBATE ADMINISTRATION

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1 CHAPTER 10: INFORMAL PROBATE ADMINISTRATION MATCHING a. in and out method b. formal proceedings c. informal proceedings d. registrar e. commencement of informal probate f. demand to be notified of petitioner s application for informal probate or informal appointment g. closing statement h. valid but undischarged claim i. Statement of Informal Probate j. court order closing an estate 1. An affidavit signed by the personal representative at the end of informal probate proceedings to close the estate and to be discharged 2. A court document that accepts an application for informal proceedings 3. A filing with the court by any persons who have an interest in the estate 4. A claim by a creditor of the estate that was not paid during the distribution of assets 5. Settlement of an estate in which some proceedings may be handled by the probate court but most of the administration takes place informally, out of the court 6. Terminates administration 7. An applicant who seeks to be appointed personal representative submits a completed application for informal probate and informal appointment 8. Administration conducted before a judge with notice to interested persons 9. An officer of the court who is authorized to act in place of a judge in informal probate 10. Administration conducted without notice to interested persons by an officer of the court 1. ANS: G 2. ANS: I ANS: H 5. ANS: A 6. ANS: J 7. ANS: E 8. ANS: B 9. ANS: D 10. ANS: C TRUE/FALSE 1. Informal probate generally extends the time required to complete the administration of a decedent s estate. Correct. Informal probate requires fewer documents to be filed with the court than does formal probate. Incorrect. Informal probate requires fewer steps than does formal probate. 2. Informal probate requires the appraisal of estate assets. Correct. Appraisal is not required, but it may be necessary.

2 Incorrect. Formal probate requires the appraisal of estate assets. 3. The surviving spouse who is a devisee of the decedent has the highest priority for consideration as the personal representative in informal probate proceedings. Correct. The person named as representative in the will has the highest priority. Incorrect. Formal and informal proceedings use the same criteria for representative selection. 4. When applying for the informal probate of a will, an applicant must affirm that he/ she is unaware of any instrument that revokes the will. ANS: T Correct. The applicant must also affirm that he/she believes that the will was validly executed. Incorrect. The applicant must also believe that the submitted instrument is the last will. 5. A person applying for informal appointment does not need to notify any other parties who might have a right to be personal representative. Correct. He/She must notify anyone with a superior right to be appointed. Incorrect. People with an inferior right to appointment do not have to be notified. 6. A person applying for informal probate of a will does not need to notify parties interested in the estate unless they have filed a written demand to be notified. ANS: T Correct. Interested parties would need to be notified for formal not informal probate. Incorrect. Informal probate, by definition, does not require notice to be given. 7. If the registrar denies an application for informal proceedings, this usually results in the commencement of formal proceedings. ANS: T Correct. Applications are often rejected because they do not qualify for informal proceedings. Incorrect. Informal proceedings are allowed only for uncomplicated wills or estates. 8. Any party that has an interest of $100 or more in an estate may demand that the personal representative post a bond. Correct. The court may require a bond if it is demanded by a party with an interest equal to or greater than $1,000 in the estate. Incorrect. The minimum amount of interest required in an estate is $1, A person who has a financial or property interest in an estate must file a demand for notice of any order or filing related to the estate within 120 hours of the passing of the decedent. Correct. Such a demand may be filed any time after the death of a decedent. Incorrect. An application for informal proceedings may not be submitted until 120 hours after the decedent s death.

3 10. The personal representative is required to give personal notice of informal proceedings to all creditors. Correct. The representative is not obligated to give notice, but he/she should do so. Incorrect. Personal notice is required only when a creditor has filed a demand. MULTIPLE CHOICE 1. Who has the highest priority for consideration as personal representative of a decedent s estate? a. Other heirs of the decedent b. Non-devisee surviving spouse of the decedent c. Devisee of the decedent other than the spouse d. Creditor of the decedent ANS: C Devisee of the decedent other than the spouse Correct. Only the devisee spouse or the person named as representative in the will has higher priority. Other heirs of the decedent Incorrect. Devisees have priority over other heirs. Non-devisee surviving spouse of the decedent Incorrect. The surviving spouse has priority only if he/she is a devisee. Creditor of the decedent Incorrect. A creditor is least likely of this group to be named personal representative. 2. Which of the following is NOT required on applications for informal probate of a will or informal appointment? a. Statement that the time limit for informal probate has expired b. Interest of the applicant in the decedent s estate c. Statement indicating the county or city where the proceedings are to take place d. Decedent s personal information, including name, date of death, domicile, and so on. ANS: A Statement that the time limit for informal probate has expired Correct. If the time limit has expired, informal probate is unlikely to be possible. Interest of the applicant in the decedent s estate Incorrect. Such interest is required. Statement indicating the county or city where the proceedings are to take place Incorrect. This statement is necessary when the decedent was not domiciled in the state upon his/her death. Decedent s personal information, including name, date of death, domicile, and so on. Incorrect. Information about family members and other beneficiaries is also required. 3. The registrar will examine the forms submitted for informal proceedings for all of the following EXCEPT: a. Evidence that other wills exist b. Confirmation that two weeks have elapsed since the decedent s death c. Compliance of the application with the Uniform Probate Code (UPC) d. Evidence that all who have demanded notice of proceedings have been notified ANS: B Confirmation that two weeks have elapsed since the decedent s death Correct. The UPC requires that only 120 hours must elapse before an application for informal proceedings can be submitted. Evidence that other wills exist Incorrect. If the applicant indicates that another will might still exist, the application will be refused. Compliance of the application with the Uniform Probate Code (UPC) Incorrect. If the requirements of the UPC are not met, the application can be rejected. Evidence that all who have demanded notice of proceedings have been notified Incorrect. All who demand notice of proceedings must be notified before the process can move forward. 4. Which is an acceptable method for giving notice of a hearing on a petition to an interested party? a. Personally delivering a copy of the notice 14 days prior to the hearing

4 b. Publishing the notice in the newspaper every other week for a month if the identity of interested parties is unknown c. Mailing a copy of the notice at least seven days before the time set for the hearing d. Publishing the notice in the newspaper at least once, 14 days prior to the hearing ANS: A Personally delivering a copy of the notice 14 days prior to the hearing Correct. This provides an interested party with adequate notice. Publishing the notice in the newspaper every other week for a month if the identity of interested parties is unknown Incorrect. If the identity of interested parties is unknown, a notice must be published for three consecutive weeks. Mailing a copy of the notice at least seven days before the time set for the hearing Incorrect. A copy must be mailed at least 14 days prior to the hearing. Publishing the notice in the newspaper at least once, 14 days prior to the hearing Incorrect. A published notice must appear three times. 5. Which is NOT a duty of the personal representative during informal probate? a. Providing a final account b. Paying creditors claims c. Holding and managing the estate d. Obtaining court approval for every item distributed ANS: D Obtaining court approval for every item distributed Correct. Obtaining court approval is required for formal probate, not informal probate. Providing a final account Incorrect. A list of the decedent s probate assets is needed to close the estate. Paying creditors claims Incorrect. Valid creditors claims must be paid after the four-month notification period. Holding and managing the estate Incorrect. The representative has the same power over title that the decedent had. 6. Within the time set by state statute, the personal representative must prepare an inventory that includes all of the following EXCEPT: a. A valuation of the assets at fair market value b. All real and personal property owned by the decedent at the time of death c. Administration expenses d. Identify any encumbrances on assets ANS: C Administration expenses Correct. These expenses are not assets, and they are included in the final account. A valuation of the assets at fair market value Incorrect. The personal representative usually may hire independent appraisers to assist in valuation. All real and personal property owned by the decedent at the time of death Incorrect. This list must be mailed to a surviving spouse and all other interested persons who request it. Identify any encumbrances on assets Incorrect. The amount of any encumbrances must also be included. 7. Which can an informally appointed personal representative choose as a means of closing an estate informally and being discharged? a. A filing of the final account with the court b. A closing statement c. A formal closing d. A notice of final distribution of assets ANS: B A closing statement Correct. A personal representative may use this method if the administration has not been continuously supervised by the court. A filing of the final account with the court Incorrect. After the final account is filed, the personal representative must then distribute the remaining assets to those entitled to receive them. A formal closing

5 Incorrect. If the administration has been continuously supervised by the court, a formal closing is required. A notice of final distribution of assets Incorrect. Distribution of assets is the last duty of the personal administrator, but he/she must then file a closing statement. 8. The affidavit signed by the personal representative at the end of informal probate proceedings to close the estate and to be discharged must verify all of the following EXCEPT: a. All assets of the estate have been distributed in full to the persons entitled to them. b. All federal and state taxes have been paid. c. A notice to creditors was published more than six months before the date of the affidavit. d. A copy of the affidavit was mailed to all distributees of the estate. ANS: A All assets of the estate have been distributed in full to the persons entitled to them. Correct. If distribution has not been completed, the reasons for partial distribution must be explained in the affidavit. All federal and state taxes have been paid. Incorrect. Verification that all creditors and successors claims have also been paid is also required. A notice to creditors was published more than six months before the date of the affidavit. Incorrect. Six months is considered an adequate amount of time for a creditor to file a claim. A copy of the affidavit was mailed to all distributees of the estate. Incorrect. A copy must also have been mailed to all creditors who have made themselves known. 9. When is the personal representative s appointment for informal proceedings terminated? a. When the formal closing ends b. Automatically upon closing of the estate c. When the personal representative has completed all duties that he/she is required to perform d. One year after the closing statement is filed, if no proceedings involving the personal representative are pending in the court ANS: D One year after the closing statement is filed, if no proceedings involving the personal representative are pending in the court Correct. When the formal closing ends Incorrect. A formal closing is required only when the administration has been continuously supervised by the court. Automatically upon closing of the estate Incorrect. The Uniform Probate Code provides a one-year grace period for the resolution of unforeseen business. When the personal representative has completed all duties that he/she is required to perform Incorrect. The one-year grace period allows for the personal representative to resolve unforeseen matters that may arise. 10. Which of the following would necessitate the reopening of an estate? a. The location of additional omitted property of the decedent after the estate has been closed and discharged b. A creditor seeking to collect a valid but undischarged claim c. The personal representative committed fraud or inadequate disclosure to a creditor related to the settlement of the decedent s estate d. A claim against a decedent s estate that arose before the decedent s death is presented six months after the date of the first publication of notice to creditors ANS: A The location of additional omitted property of the decedent after the estate has been closed and discharged Correct. Proper disposition of these assets will necessitate reopening the estate. A creditor seeking to collect a valid but undischarged claim Incorrect. The creditor must press the claim in a judicial proceeding against one or more of those who received the assets. The personal representative committed fraud or inadequate disclosure to a creditor related to the settlement of the decedent s estate Incorrect. The creditor has the right to recover from the personal representative, but the estate will not be reopened.

6 A claim against a decedent s estate that arose before the decedent s death is presented six months after the date of the first publication of notice to creditors Incorrect. Such claims are barred against the estate if notice was given in compliance with the Uniform Probate Code.