1What Is Probate of a Will?

The probate process can be long, complicated and very confusing, but we are going to help you gain a better understanding of it.

Think about the probate process as having two separate pieces.

• Paying off any debts that you owe
• Transferring any remaining assets to your beneficiaries, as determined by your will

2Four Main Steps in Probate

Probate courts are not federal courts, which mean they don’t have a standard set of guidelines that must be followed. However, there are four general steps that are usually included in the probate process, regardless of where it takes place.

• The Executor is sworn in
• Notification of death is made to your creditors, heirs, etc
• Inventory is taken of your property, assets and debts
• Your assets and estate are distributed (after your debts are paid)

3How Much Does Probate Cost?

The costs involved in probating an estate can quickly add up to a substantial amount. Costs are different in different locations, but they typically range between 0.5% - 2% of the value of the entire estate.

Other costs typically added to increase the cost of probate include:

• Attorney fees
• Executor fees
• Estate taxes

4How Long Does Probate Take?

Most people are interested in the question “how long does probate take”? The answer is that it depends upon the size and complexity of your estate. The best way to ensure the process is as quick and easy as possible is to have a legal will. This is one of the many reasons that you (and everyone else in your extended family) should make creating a will a priority.

If there aren’t complications, it usually takes over a year to settle all aspects of your probate. However, complicated estates can last for decades as they work through the court system.

5Can You Avoid Probate?

When looking at the fees associated with probate, it is easy to see why people are interested in finding ways to avoid it.

The process is lengthy and can be very costly.

However, there are many factors to consider when trying to avoid future probate costs.

These include family relationships and tax implications, etc. There will also likely be costs associated with trying to avoid probate, you just have to make sure that they are small enough to still provide a benefit.

6Why Should You Avoid Probate?

There are typically three reasons that would make someone want to avoid probate. Those reasons are:

• Maintain privacy – The probate process is public. As soon as a probate file is opened, it is available to anyone who wants to look at it.
• Save time – Since the average time of probate is an entire year, the assets of the estate will be frozen during this time. Avoiding probate entitles your beneficiaries to have access to your assets much more quickly.
• Save money – The cost is usually the reason that people begin researching how to avoid probate. The costs of the process usually take up a large chunk of the estate being settled.

It makes a lot of sense to be prepared so that your estate (and your beneficiaries) can avoid many of these problems.

7How Can You Avoid Probate?

There are typically three ways that you can avoid probate.

Living Trust

A living trust has three principal parties involved. Someone creates the trust, someone is responsible for the trust and someone receives the benefits from the trust. However in many cases, the owner of the assets plays the role of all three people.

The trust is created to include your assets and a successor trustee is named. At the time of death, the trust is then transferred to the person who was named as the successor trustee.

This process does not go through the courts, involve any probate fees and it is all completely private.

Joint Ownership of Property

This is a very easy way to avoid probate. When properties have joint ownership, the property simply passes to the surviving owner when the other owner passes away. The typical term used for this is “joint tenancy with right of survivorship”.

Gifts

Giving your assets as gifts is another option to help avoid future probate. The simple idea is that if your assets are not technically owned by you at the time of your death, they are not required to go through probate to be disbursed.

However, it is important to be aware of potential taxes depending upon the size of the gift.

8Probate Wills Summary

This article was designed to give you several ideas for how you can take steps today to avoid delays and costs later. You should consider your options and then speak to a qualified estate planner before making any final decisions or taking any action.

Estate planning is a complicated field. If you make decisions and take action before consulting with an expert, it could actually wind up costing more time and money than it saved.

Do you have a better understanding of what is probate of a will?  Do you have additional questions we may be able to help answer?