Many people believe that the simplest way to transfer assets is through the creation of a last will. Those who are under this impression probably aren’t aware of the probate process.
There is a fictional scene that comes to mind. Someone passes away, and there is a gathering after the funeral. Certain people are called into a study, and the last will is read. Property is then distributed to the heirs that are named in the will. In this fictional scene, probate does not exist.
In reality, a last will must be admitted to probate before the heirs receive their inheritances. Probate is a legal process. During probate, the court supervises the administration of the estate.
There are a number of drawbacks that go along with the probate process. In this post we will look at three of them.
Probate Is Not Free
Significant expenses can accumulate during the probate process. There is a filing fee that the court will charge, and the executor is entitled to payment for his or her time and trouble. Property appraisals may be necessary, and there can be liquidation costs.
Final taxes must be paid while the estate is being probated. As a result, the executor will often bring in a tax accountant. The executor may also retain the services of a probate lawyer.
There can be other ad hoc expenses that present themselves during the process.
The things that take place during probate become a matter of public record. Anyone who is interested can obtain the probate records.
Probate can be a time-consuming process. Each jurisdiction is somewhat different, but in general, a simple and straightforward case will take between eight months and a year. Remember, the heirs to the estate do not receive their inheritances until the estate has been probated and closed. This delay can create hardships for some people.
When you hear about these probate drawbacks you may wonder if it is possible to facilitate the transfer of your monetary resources outside of the process of probate. The answer is yes, there are a number of different probate avoidance strategies that can be implemented. The optimal course of action will depend on the circumstances.
One very popular probate avoidance tool is the revocable living trust. With this type of trust you do not lose control of the assets while you are alive and fully capable of handling your own affairs. After you die, the trustee that you choose distributes monetary assets to the beneficiaries in accordance with your wishes.
These distributions would take place in a timely and efficient manner outside of the process of probate.
Free Probate Report
In this post we have provided some basic information. To learn more about probate, download our in-depth report. This report is being offered on a complimentary basis, and you can access the download through this link: Free Probate Report.