Probate: Legal title to assets are passed from descendent to heirs via the court system.

PROBATE

Probate, in no uncertain terms, is something every estate owner wants to avoid at any cost. Probate is the court supervised legal process that includes determining the validity of your will, gathering your assets, paying your debts, taxes, and the expenses of will administration, and then distributing the remaining assets to those persons entitled to them. Yet most of us are not sure why. Unless you’ve been the executor for someone else’s estate, it’s a process you won’t have to go through…but your loved ones might have to.

TIME & COST

Probate is not cheap or quick. Because probate requires a hearing in over-worked court systems, and the process can tie up your beneficiaries’ property for a years. That means your loved ones will not get the assets you intended for them until the probate process is complete. Probate is almost always very expensive. Estate attorneys, who charge a large flat percentage or a high hourly rate, usually handle probate. Because probate costs can add up, the estate must pay for these costs from your assets. However, if your estate consists real property, art, coins, or long-term bonds, these assets will have to be sold to pay for probate.
Selling these items involves appraisal fees, early withdrawal fees and taxes and additional delays, not to mention the fact that property you’ve intended for your beneficiaries may be sold at below-market value to pay for probate costs.

PRIVACY

The probate process is criticized for the loss of privacy surrounding the will maker’s financial affairs. When a Will is admitted to probate, it becomes a public record. Not only does the Will itself become public, but also all documents involved in the proceedings become public record and can be viewed by anyone desiring access. Some people have legitimate reasons for viewing this loss of privacy as a negative aspect of probate proceedings.

HOW TO AVOID PROBATE

In certain situations you can avoid the probate process altogether. A common way is through the establishment of a living trust and the transfer to the trust, while you are alive, of all assets you want to pass on to your beneficiaries. Living trusts are governed by their own provisions and will continue after your death. Therefore, if your property is in trust, there is no need to go through probate to retitle those assets out of your name. Instead, the assigned trustee will distribute the trust assets to the beneficiaries that you have specified in your trust and will.

FINDING A FINANCIAL ADVISOR

A financial advisor can ensure you’re saving enough to meet all your immediate and retirement needs. Find out what’s best for you and your retirement goals! Learn more about the different asset allocation types, explore the areas above and fill out our on-line form to find a certified financial advisor in your area.