What is the process called when courts determine the ownership interest of an estate for creditors and heirs?

The correct answer, probate, refers to the legal process through which a deceased person's estate is managed and distributed. This process involves validating the will (if one exists), determining the rightful heirs, and paying off any debts or claims from creditors. In probate, the court establishes the ownership interests in the estate, ensuring that assets are allocated according to the law and the wishes outlined in the will. This is a critical step in the administration of an estate, as it provides clarity and legality to the distribution of assets following someone's death.

The other terms relate to different aspects of the estate management process. For instance, administration could refer more generally to the overall management of the estate but does not specifically encapsulate the judicial aspect involved in confirming ownership. Settlement typically describes the resolution of claims or disputes, while disbursement focuses on the actual distribution of funds or assets, rather than the judicial determination of ownership. Understanding the term probate is essential for recognizing how estates are handled legally after a person's passing.