If you begin to look into the topic of estate planning, you will invariably hear about estate administration and probate avoidance. Let’s look at the probate process and the reasons why people often try to avoid it.
You may be under the impression that you should utilize a last will as the centerpiece of your estate plan because your financial situation is not particularly complicated. Many people are under this impression. They think that trusts are for very wealthy individuals.
When you create your will, you can nominate an executor or personal representative. This is the person or entity who would handle the estate administration duties after your passing.
Many individuals assume that the estate administrator can act independently, without any supervision. The idea is that assets are distributed to the heirs shortly after the passing of the decedent, and that is the long and short of it.
In real life, this is not the way things work. Under the applicable laws of the state of North Dakota, property that was in the sole and direct personal possession of the decedent at the time of his or her passing would become probate property at first.
The will would be admitted to probate, and the probate court would supervise the administration of the estate.
This legal process can make things somewhat complicated for the rightful heirs to the estate. The most significant drawback would be the consumption of time. The probate process does not run its course overnight. A relatively simple case can pass through probate in perhaps nine months to a year in most areas.
This can be a long time to wait for an inheritance, even if you do not need the money. For others who may have financial need, the time consumption can be a major issue.
In addition to the consumption of time, there is also the matter of inheritance erosion. Probate is not free by any stretch of the imagination. There are numerous different expenses that can present themselves during the process. There are court costs, and there will often be legal fees, accounting charges, appraisal fees, and liquidation costs. These expenditures eat away at the inheritances that will be received by the heirs.
Learn More About Probate and Probate Avoidance
We have provided a good bit of food for thought in this brief blog post, but you can obtain more comprehensive information about probate and probate avoidance if you download our in-depth special report. This report is being offered to our readers on a complimentary basis, and it will provide you with a lot of very useful information.
To get your copy of the special report, click this link and follow the simple instructions: Grand Forks ND Probate Report.