The probate administration process in Ohio is an important and necessary legal procedure that ensures the proper distribution of a deceased person’s assets and the settlement of their final affairs. While probate can seem complex, especially during a time of great emotional difficulty, it serves an important role in providing structure and clarity to the disposition of the decedent’s estate. For Ohio residents and those inheriting assets from a deceased person who resided in Ohio, understanding how probate works here can make the process less daunting. In this article, I outline the key steps of the Ohio probate administration process, the role of the probate court and the executor or administrator, and ways to streamline the whole process.
What is probate?
Probate is the legal process through which a court oversees the distribution of a person’s assets, the settlement of their debts, and the resolution of their final affairs after that person has died. We call a person who has died “the decedent.” If the decedent had a Last Will and Testament, commonly known as a will, the court will determine the will’s validity and ensure the assets are distributed according to the decedent’s wishes. If there is no will, which is known as “dying intestate,” the court follows state law to divide the assets among the decedent’s heirs at law, which are people who stand to inherit or have a right of inheritance in the property of a person who died without a will. Probate also ensures that outstanding debts, including taxes, are paid before distributing the remaining assets to the beneficiaries or heirs.
In Ohio, probate is governed by specific state statutes. The process typically occurs in the probate court of the county where the deceased person was living at the time of their death. However, if the decedent owned property in other states, such as real estate, then a separate probate administration, known as an “ancillary administration,” would need to occur in that other state.
The Role of the Executor
One of the first steps in probate is the appointment of an executor, who functions as the decedent’s personal representative. If the deceased had a will, they likely named an executor in the document. If not, then a person interested in the role, usually a family member, will need to apply to be the administrator of the estate. The executor’s (or administrator’s) duties include gathering the estate’s assets, paying off debts, filing necessary tax returns, and distributing the remaining assets to the beneficiaries or heirs.
The executor’s role is pivotal in probate because essentially, this person carries out the administration of the estate. In Ohio, the probate court must approve of the executor, who may have to post a bond to ensure the estate is managed responsibly (unless the will waives this requirement). Generally, if the decedent did not have a will, Ohio will require the posting of a bond.
Key Steps in Ohio's Probate Process
The Ohio probate process generally follows a structured series of steps. Here’s a breakdown:
- Filing a Petition to Administer the Estate
Once a person passes away, that person’s executor or an interested party must file an application to administer the estate with the probate court to begin the probate process. If the deceased person had a will, then part of this process would include the filing of an application to admit the will to probate. The court will then formally open the probate case and qualify the executor or administrator to administer the estate.
- Notifying Heirs and Creditors
After the probate case is opened, the executor must notify all interested parties, including beneficiaries, heirs, and known creditors. Creditors typically have six months from the time of the decedent’s death to file claims against the estate for unpaid debts. The executor must review these claims and determine whether they are valid, then settle them before distributing any remaining assets. Depending on the type of creditor, the creditor’s claim may not be paid if there are insufficient assets to pay all outstanding debts and liabilities.
- Inventory and Appraisal of Assets
The executor must compile a detailed inventory of the decedent’s assets. This includes real estate, bank accounts, stocks, personal property, and any other holdings. The inventory is filed with the probate court, and in some cases, assets may need to be appraised to determine their value. This inventory serves as the basis for estate administration, enabling the court to ensure the proper management and eventual distribution of the estate.
- Paying Debts, Expenses, and Taxes
Before any assets can be distributed, the estate’s executor or administrator must pay any outstanding debts, funeral expenses, and taxes out of the estate’s assets. Ohio allows certain debts, such as funeral expenses, to be given priority over others. Additionally, the executor must file final income tax returns for the decedent and, if applicable, pay any estate taxes. Also, the executor must show proof to the probate court that the executor paid the funeral bill.
Ohio does not have a state inheritance tax, but federal estate tax laws may apply if the estate is particularly large. The current exemption from the federal estate tax is $13.61 million per person. Therefore, federal estate taxes are not usually a concern in most estate administrations in Ohio. The executor may need the help of an accountant or tax attorney to navigate these obligations.
- Distribution of Assets
Once the debts and expenses have been settled, the executor can distribute the remaining assets to the beneficiaries or heirs. If there is a will, the distribution of assets will follow the terms of the will. If there is no will, the distribution follows Ohio’s intestate succession laws. These laws prioritize close family members like spouses, children, and parents, but other relatives may also inherit if no immediate family exists. If there are no immediate or distant family members, then it is possible for the estate assets to be escheated to the state, which means that the State of Ohio would take possession of the assets of the estate.
Avoiding Probate in Ohio
Not all assets need to go through probate. Certain assets can be passed directly to beneficiaries without court involvement, which can save time and reduce costs. Some of the most common probate-avoidance strategies include:
- Joint Ownership: Property held jointly with the right of survivorship automatically passes to the surviving owner without probate.
- Beneficiary Designations: Assets like life insurance policies, retirement accounts, and payable-on-death (POD) accounts bypass probate if the decedent has assigned beneficiaries to receive them.
- Living Trusts: By placing assets in a living trust, individuals can ensure that those assets pass directly to their beneficiaries without going through probate.
