Probate is a legal process by which a person's final debts are settled and legal title to property is formally passed from the decedent to his or her creditors, beneficiaries and heirs. Probate is necessary whenever a decedent leaves titled assets in his or her name.

The probate process is the safest and most effective method for recovering deceased accounts. Deceased recoveries generated through probate are 2½ to 3 times greater than recoveries generated outside of probate. The probate process eliminates unnecessary contact with survivors, thereby reducing stress and protecting your relationship and your reputation.

How Does Probate Protect a Creditor?

The probate process makes only one requirement of creditors: that they present their claims in a timely manner. A creditor who is able to locate the probate case and present its claim on time preserves its rights and is entitled to full payment without any further action required. With the timely presentation of a claim, the creditor's rights are completely preserved, under penalty of law.

When resolving decedent debt, recovery specialists are pursuing people who may not have incurred the debt in question, who may be feeling vulnerable, and who are preoccupied and protective of the memory and legacy of those who did.

The probate process eliminates unnecessary contact with those survivors by targeting communications with the estate representative or attorney, thus reducing stress on the grieving family. Further, creditors that pursue estate claims honor the intentions of the decedent who, while alive, wanted to resolve his indebtedness without bother to his survivors.

What are the Challenges of Using the Probate Process?

While probate has been in effect for hundreds of years and the value of probate claims has long been recognized, effective processes to locate and file claims against probated estates simply have not been available to organizations that extend credit. This is because probated estates are difficult to find and the filing of probate claims is both complicated and time sensitive.

To begin with, the probate system in the U.S. is archaic. Unlike bankruptcy, there is no uniform nationwide system. Probate is administered in over 3,450 county courts and processes to locate probate information, which are determined at the individual county level, can be difficult and confusing.

Making matters worse, there is no central database of probated estates, up to 15% of probates are opened outside the decedent's county of last residence, and probated estates can be opened at any time up to three years from date of death. Probate searches can also be expensive. Search fees vary by court and range from a few cents up to $35 per search. Multiple searches are often required and sourcing probates in many jurisdictions can be labor intensive.

Once an organization has located a relevant probate, filing a claim on that estate also presents challenges. First, filing probate claims is a time-sensitive endeavor: failure to file a claim in a timely manner can render the account uncollectible, and the timeframes within which to file a claim are sometimes as little as 60 days from notice.

Filing probate claims can also be complicated. Claim filing processes are determined at the county level and each county has unique specifications for items such as filing fees, notice and/or rejection requirements, claim forms, filing deadlines, statutory court instructions and court administrator contact information. For organizations that extend credit nationally, the probate system has over 20,000 variables that must be managed correctly in order to accurately file claims in jurisdictions around the U.S.

How Forte Helps

Forte's solutions combine the only national database of estate information available today with an automated claim filing system that:

• simplifies the process of finding estates and filing claims
• locates more estates
• collects more money
• significantly reduces costs, and
• eliminates unnecessary contact with surviving families.

Learn how Forte can give you the probate advantage for your deceased account recovery program.