Probate money refers to financial assets held in probate court during estate settlement procedures. Probate is the legal process used to settle estates that are not protected by a trust. Personal property, financial portfolios, and inheritance gifts cannot be distributed to heirs until the probate process is completed.
In some cases, probate money refers to funds acquired through the sale of probated assets. This can encompass the sale of real estate, automobiles, and other valuable items such as jewelry or artwork. It can also include cash held in decedents’ bank accounts and life insurance proceeds.
Specific protocol must be followed when selling inheritance assets. Although personal belongings and property owned by decedents can be sold during the probate process, most states require estate executors to obtain court approval before commencing with the sale. Individuals charged with the task of settling probate estates should obtain legal counsel to ensure settlement procedures abide by state probate law.