What Is probate? When a family member dies, what happens to the estate; the bank and savings accounts, the stock and bond accounts, the real estate, insurance, trusts, annuities, business interests, and other assets? It all depends on probate.
Nolo Law for All says, “Probate is a legal process that takes place after someone dies. It includes:
If the deceased did not have a Will, then the property will be distributed according to Missouri law regarding intestacy (dying without a Will).
Not all estates must go through probate. If an estate falls below a certain threshold, it is considered a “small estate” and settling the estate doesn’t require court supervision. Click here to find out Missouri’s small estate threshold and procedure.
Not all assets are subject to probate. Some kinds of assets transfer automatically at the death of an owner with no probate required. The most common types of assets that pass without probate are:
If a decedent has created a Living Trust to hold his or her’s most significant assets, then that estate, too, won’t go through probate, unless the assets left outside of the trust add up to more than Missouri’s small estate limit.
Since 2005, Missouri doesn’t have a separate state estate tax. The estate must file and pay all necessary state and federal taxes, including the final income tax return of the deceased and any real estate or personal property taxes owed by the deceased.
The imposition of an inheritance tax takes place after the transfer of assets. Therefore, an inheritance tax must be paid by the beneficiary, not by the estate. The good news is that the State of Missouri does not collect inheritance taxes.
Even before the property has cleared probate in Missouri, the heirs may decide to dispose of the property quickly. That’s where Terra Firma Property Solutions, LLC, can help. The heirs may not want to bring the house up to today’s standards. Today’s buyers want quartz countertops, the latest stainless appliances, and wine coolers. The heirs may not have the money for deferred maintenance issues or renovation. The heirs may have no inclination to spend time renting, or staging and showing the house. The heirs may live in another city and don’t have the time or money to travel back and forth to the Kansas City area.
We buy and sell properties throughout the greater Kansas City area. We specialize in buying distressed homes, then renovating and reselling them to home buyers and landlords. Terra Firma Property Solutions: excited to be part of the economic rejuvenation of Kansas City and its surrounding areas.
Call us today at (816) 866.0566