Probate process is often misunderstood. Probate is basically the process of administering the will of a deceased person. The process includes resolving any claims, paying remaining debts and the distribution of property.
It can also be costly and time consuming—and completely avoidable.
- What Is Probate?
Probate is a court process required when you are unable to manage your affairs. It involves a lot of paperwork and court appearances (i.e. lawyer fees). All of these costs are paid from the estate—monies that would otherwise go to the beneficiaries.
Probate is also a public process. Therefore, all of your assets, as well as their estimated value, become a part of the public record.
- Can I Avoid Probate If I Have a Will?
No. A will is merely a guide map directing assets through probate process.
- How Can I Avoid Probate?
The only way to avoid probate is to ensure all of your assets, upon your death, will automatically pass into an alternative to a will. A living trust, for example, holds title to all assets or the assets automatically pour into the trust upon death, thereby circumventing the probate process.
In the case of disability, you may eschew probate by legally authorizing a proxy with regards to property and/or health decisions. Examples of legal means to avoid probate in the face of a disability include financial power of attorney, healthcare power of attorney, and coordinated living trust.
- Is Probate Expensive?
Absolutely. Probate can be a complicated process so most people hire and attorney—which can cost $2,000-$5,000 for a simple estate. For estates exceeding $100,000, the costs can be between $5,000-$10,000. Why? The executor must be paid. The probate case has to be filed with the state and the filing fee is typically around $300. Probate cases must be published in the local newspaper, so publishing costs are also incurred by the beneficiaries.
And since the details of the estate do become public, there is also an increased likelihood that someone will come forward to contest the will. Should that occur, the attorney’s time and your expenses would also increase.
The good news is that probate is avoidable with proper planning. Yes, a good estate plan will cost money. But it pays for itself several times over in the long run. If you have questions regarding the probate process or estate planning, you can contact me at 618-659-4499 or by email at email@example.com. You can also learn more about our estate administration and probate services online at www.sivialaw.com/estateplanning.html.