Losing a loved one is never easy, and dealing with their estate can be overwhelming, especially if they did not leave a will. When a person dies without a will, it is called dying "intestate." In Illinois, the process for administering an intestate estate is called probate. In this article, we will look at the steps necessary to settle an intestate estate in Illinois.

Step 1: Determine if Probate Is Necessary

The first step in probating an intestate estate in Illinois is to determine if probate is necessary. In Illinois, the threshold for whether probate is necessary depends on the size of the estate. If the estate has assets valued at $100,000 or less, a simplified probate process may be available. This process is called "small estate administration" and it can be a faster and less expensive way to administer an estate.

To qualify for small estate administration, the decedent must have had no real estate or only limited real estate, and their personal property must not exceed $100,000 in value. Additionally, the deceased's debts cannot exceed the value of their assets.

If the estate meets these criteria, the administrator can file a petition for small estate administration with the circuit court in the county where the deceased resided. The court will then appoint an administrator and issue an order allowing the administrator to collect and distribute the assets of the estate without the need for a full probate proceeding.

If the estate has assets valued at more than $100,000, or if the deceased owned real estate, a full probate proceeding will be necessary. In this case, the court will appoint an administrator to manage the estate, and the estate must go through the full probate process, including inventorying assets, paying debts and taxes, and distributing assets to heirs.

Step 2: File a Petition for Probate

If probate is necessary, the next step is to file a petition for probate. Because the decedent died intestate, the petition will be for "Letters of Administration." The administrator must make a initial determination as to the proper venue for the probate proceeding, meaning that the administrator must determine which court has the ability to hear the probate matter. Generally speaking, the petition should be filed in the circuit court in the county where the decedent resided at the time of their death. However, if the decedent owned property in multiple counties (or multiple states), it may be necessary to file separate petitions in each county (or state).

Information must be gathered before filing the petition. The petition will include the following information:

• The decedent's name and address
• The date of the decedent's death
• A statement that the decedent died without a will (i.e., intestate)
• The names and addresses of the decedent's heirs, as well as any other interested party, such as creditors
• A list of the decedent's assets and their estimated value as of the date of death
• A request for the court to appoint an administrator of the estate

The petition must be signed by the person filing it and may have to be signed by an attorney. To file the petition, a filing fee must be paid with the court. This fee varies from county to county and may also depends on the size of the estate.

Step 3: Notify Interested Parties

Once the petition for probate is filed with the circuit court, the next step is to notify all interested parties of the probate proceedings. The purpose of this step is to provide notice to heirs, creditors, and any other interested party to the estate that the decedent has died and that a probate matter has commenced.

There are a couple of different steps that must be taken to provide proper notice. First, notice of the probate matter must be published in a local newspaper of general circulation in the county where the probate proceedings are held. The notice must be published once a week for three consecutive weeks and the first publication must be made within 14 days of the filing of the petition for probate. Generally speaking, the clerk of the probate court will file this notice. Second, notice must also be sent by mail to all interested parties whose addresses are known to the administrator. This includes all heirs, beneficiaries, and creditors of the decedent.

Each notice must include the following information:

• The name of the decedent
• The name and address of the court where the probate proceeding is taking place
• The name and address of the petitioner
• The date of the first publication of notice
• A statement that any interested party has the right to appear in court and contest the probate proceedings

Lastly, once notice has been published for three weeks, the newspaper will provide an "affidavit of publication" to the petitioner. This affidavit must be filed with the court.

Step 4: Inventory the Assets

Once an administrator has been appointed for the estate and notice has been given, the next step is to inventory all assets of the estate. This includes all property owned by the deceased at the time of their death, such as real estate, personal property, bank accounts, investments, and other assets.

The inventory must be filed with the court within 60 days of the administrator's appointment. The inventory must include a detailed description of each asset, its estimated value at the time of the deceased's death, and any relevant details about the asset, such as account numbers, locations, and any liens or other encumbrances.

The inventory must also include a list of all debts and obligations owed by the deceased at the time of their death, including any funeral expenses, medical bills, or other outstanding debts. The administrator must gather and review all relevant financial records and other documentation to ensure that all assets and debts are properly accounted for.

If the estate includes real estate, the administrator must also have the property appraised by a licensed appraiser. The appraisal must be included in the inventory. It's important to note that the inventory must be filed with the court within the required timeframe, and any errors or omissions can delay the probate process.

Step 5: Pay Debts and Taxes

Once the assets of the estate have been inventoried, the administrator must pay off any debts or taxes owed by the estate before distributing the remaining assets to the heirs. This includes funeral expenses, medical bills, and any taxes owed to the state or federal government.

The administrator must also file any necessary tax returns on behalf of the estate. This may include a final income tax return for the deceased, as well as estate tax returns if the estate is large enough to require them.

If there are not enough assets in the estate to pay off all debts and taxes, the administrator must follow the priority rules set forth by Illinois law. Generally, funeral and administrative expenses are given first priority, followed by certain types of debts and taxes, such as medical bills and property taxes. It's important to note that the failure to pay off all debts and taxes can result in legal action against the administrator or heirs, so it's essential to ensure that all debts and taxes are paid before any assets are distributed.

It's also important to keep detailed records of all payments made by the estate, including receipts and other documentation. The administrator must file periodic reports with the court detailing all payments made by the estate and providing an accounting of all assets and debts.

Step 6: Distribute Assets

Once all debts and taxes are paid, the administrator can distribute the remaining assets to the heirs according to Illinois intestacy laws. The distribution of assets will depend on the deceased's family situation and the relationships of their surviving relatives.

Under Illinois law, if the deceased is survived by a spouse and children, the spouse will receive one-half of the estate and the children will share the other half equally. If the deceased is survived by a spouse but no children, the spouse will receive the entire estate. If the deceased is not survived by a spouse or children, the estate will be distributed to the deceased's parents, siblings, or other close relatives, depending on who survives the deceased. If there are no surviving relatives, the estate will escheat (or revert) to the state.

Step 7: Close the Estate

Once all assets are distributed, the administrator must file a final report with the court and close the estate. The final report must include a detailed accounting of all assets, debts, and expenses associated with the estate. The final report must be filed with the court within six months of the estate being opened. If the estate is not closed within that timeframe, the court may require additional reports or other documentation to be filed.

If the court approves the final report, the estate is considered closed. At that point, the administrator's duties are complete, and they are discharged from their responsibilities.

Conclusion

In conclusion, probating an intestate estate in Illinois can be a complex and challenging process, involving a number of steps and requirements. From filing a petition for probate to inventorying the assets, paying debts and taxes, and distributing assets to heirs, the probate process can take anywhere from several months to a few years to complete. However, by working with an experienced probate attorney, you can help ensure that the process is handled efficiently and effectively, and that the deceased's wishes are respected. With the right guidance and support, you can navigate the probate process with confidence and ensure that the estate is properly administered.