Probate: What is It and Why Avoid It?
Probate is a court proceeding in which the validity of a will is proven, distribution of assets are made, title is cleared, and debts are paid.
This all sounds like a good and proper thing to do. So why avoid it?
Probate is (1) expensive, (2) public, and (3) time consuming.
(1) Up to 10-15% of your gross estate can be taken by the court, lawyers, appraisers, and other people who are not your beneficiaries.
(2) Probate proceedings are held in open court. This is how and why we know about every detail of the wills left behind by famous people.
(3) It takes time for probate proceedings to finish, sometimes up to 6-18 months. During this time, assets can be frozen and family members left without any cash while their expenses remain fixed.
By setting up a proper estate plan you can have your assets bypass probate and ensure that your loved ones inherit your property without the consequences of probate. As estate planning attorneys, we may help you by:
(A) Preparing a Trust, Will, and other estate planning documents to protect your estate and family.
(B) Reviewing your financial documents to confirm if they may already bypass probate, including accounts such as life insurance, IRAs, pay on death, and others.
(C) Recommending specific forms of property titling to bypass probate for your specific situation.
