What is Probate?

Probate is a legal process that occurs when a person dies, and their assets are distributed. The decedent’s estate goes through the probate court when a person passes away. It will either be Testate (with a valid Will) or Intestate (without a valid Will).

Probate can be a lengthy process. It can take months, or years if there are any complications with the estate. The probate process is known for being costly and stressful for families. The fees can total up to 3% of the decedent’s estate, or higher.

The Probate Process

Probate can sometimes be painless, and other times, not so painless. The reason for this is the steps involved to complete a probate. Each step is subject to complications. This can involve locating the Last Will and unknown creditors. The best course of action is to hire an Estate Planning attorney for guidance. 

Here are the regular steps followed for probate:

a) Confirm if the decedent has a Will.

b) Order the original death certificate. Most banks need the original death certificate and a copy of the death certificate.

c) File a petition in probate court. Once filed, the court should appoint the executor named in the Will. If there is no Will, the court will appoint an administrator to distribute the estate.

d) Locate the decedent’s assets. There are different types of assets. To name a few: bank accounts, real property, safe deposit boxes, jewelry, and cryptocurrency. Tracking down all these assets can take months if it is not clear what the decedent owns.

e) Verify and pay all outstanding creditor claims filed during the probate. Also, pay the decedent’s outstanding taxes from the last tax year they lived through.

f) Distribution of shares. The heirs and beneficiaries may collect their shares only after all debts have been paid. 

g) Complete accounting of the estate. This needs the approval of the probate court. Once approved, the court will close the file and complete the probate process.

The standard procedure looks simple, but every case is unique. Each case presents different challenges before completing the probate process. 

How to Avoid Probate

Yes, there is an option available to avoid the dreaded probate process. What is this option? Creating a Trust of course! 

A Trust avoids probate by taking the ownership of your assets out of your name. This means there is no need to probate your estate. Be advised that any assets not included in the Trust will be subjected to probate. Be sure to properly fund your Trust with all your assets. To learn more about avoiding probate, please schedule a consultation with our firm so you can reduce the stress and costs for your loved ones.