00:02
Faizan
Probate is a court process that exists to settle a decedent's estate after he dies, even when the decedent's spouse is still living. Through probate, the decedent's will is validated, his final debts are paid and his assets are distributed to his heirs or beneficiaries. In Wisconsin, as in other states, probate is generally required, but Wisconsin law provides some alternatives for certain smaller estates.
Some Property Passes Outside Probate
Several types of assets can be transferred without going through probate if they are transferred to named beneficiaries, whether or not the named beneficiary is the decedent's spouse. Thus, you may not have to go through probate when your spouse dies if his entire estate consists of non-probate assets. For example, life insurance and payable-on-death bank accounts automatically become the property of the named beneficiary when the decedent dies.
Wisconsin allows property owners to leave a transfer-on-death deed for real estate, too. This passes real property directly to the named beneficiary without requiring probate. Real estate that is marital property, and property owned by co-owners as joint tenants with rights of survivorship, automatically passes to the surviving spouse or co-owner without going through probate. For example, if you and your spouse own your home together as joint tenants, you will likely inherit the house automatically when your spouse dies -- without having to go through probate to transfer ownership to you.
Formal and Informal Probate Options
Unless an exception applies, your spouse's estate must go through probate if it contains some assets that do not pass outside probate. Wisconsin offers both formal and informal probate, with informal probate available if the estate has more than $50,000 in assets, the decedent's will does not prohibit it and all parties agree to it. Many of the same procedures apply to both informal and formal probate, but informal probate allows the estate's representative to perform many of his tasks without continued supervision from the court, and without the necessity of an attorney. Both formal and informal probate require the estate's representative to complete an inventory of the assets, publish notice in the local newspaper, pay the decedent's debts and keep an account of the estate's assets and expenses.
Summary Settlement
When a Wisconsin decedent is survived by a spouse or minor children, his estate can qualify for a summary settlement procedure if the estate's value is less than $50,000 after the value of property with secured loans is deducted. For example, if your spouse's estate is worth $55,000, but he has a $10,000 loan for a vehicle he owned, his estate likely qualifies for summary settlement, since the value after the loan is deducted is $45,000 -- below the $50,000 threshold. Though summary settlement procedures can sometimes be more advantageous to surviving spouses because they minimize court involvement and expenses, they are not used frequently because Wisconsin's statutes have gradually been revised to make the procedure nearly as complicated as the more common informal probate proceeding.
Other Transfer Methods
Wisconsin allows surviving spouses to transfer vehicles without going through probate by using a form available through the state's department of motor vehicles. You can use this method to transfer up to five vehicles that are less than 20 years old, or an unlimited number of vehicles that are at least 20 years old.
If your spouse did not leave a will and his estate has $50,000 or less of solely owned property, you can transfer his probate assets by affidavit instead of going through probate. Marital property, or community property, is not included in this value threshold. The affidavit, or sworn statement, is available through the Wisconsin court system's website.
Some Property Passes Outside Probate
Several types of assets can be transferred without going through probate if they are transferred to named beneficiaries, whether or not the named beneficiary is the decedent's spouse. Thus, you may not have to go through probate when your spouse dies if his entire estate consists of non-probate assets. For example, life insurance and payable-on-death bank accounts automatically become the property of the named beneficiary when the decedent dies.
Wisconsin allows property owners to leave a transfer-on-death deed for real estate, too. This passes real property directly to the named beneficiary without requiring probate. Real estate that is marital property, and property owned by co-owners as joint tenants with rights of survivorship, automatically passes to the surviving spouse or co-owner without going through probate. For example, if you and your spouse own your home together as joint tenants, you will likely inherit the house automatically when your spouse dies -- without having to go through probate to transfer ownership to you.
Formal and Informal Probate Options
Unless an exception applies, your spouse's estate must go through probate if it contains some assets that do not pass outside probate. Wisconsin offers both formal and informal probate, with informal probate available if the estate has more than $50,000 in assets, the decedent's will does not prohibit it and all parties agree to it. Many of the same procedures apply to both informal and formal probate, but informal probate allows the estate's representative to perform many of his tasks without continued supervision from the court, and without the necessity of an attorney. Both formal and informal probate require the estate's representative to complete an inventory of the assets, publish notice in the local newspaper, pay the decedent's debts and keep an account of the estate's assets and expenses.
Summary Settlement
When a Wisconsin decedent is survived by a spouse or minor children, his estate can qualify for a summary settlement procedure if the estate's value is less than $50,000 after the value of property with secured loans is deducted. For example, if your spouse's estate is worth $55,000, but he has a $10,000 loan for a vehicle he owned, his estate likely qualifies for summary settlement, since the value after the loan is deducted is $45,000 -- below the $50,000 threshold. Though summary settlement procedures can sometimes be more advantageous to surviving spouses because they minimize court involvement and expenses, they are not used frequently because Wisconsin's statutes have gradually been revised to make the procedure nearly as complicated as the more common informal probate proceeding.
Other Transfer Methods
Wisconsin allows surviving spouses to transfer vehicles without going through probate by using a form available through the state's department of motor vehicles. You can use this method to transfer up to five vehicles that are less than 20 years old, or an unlimited number of vehicles that are at least 20 years old.
If your spouse did not leave a will and his estate has $50,000 or less of solely owned property, you can transfer his probate assets by affidavit instead of going through probate. Marital property, or community property, is not included in this value threshold. The affidavit, or sworn statement, is available through the Wisconsin court system's website.
Posted in: Estate Laws
