When a loved one passes, it takes an exceeding toll on family members and friends emotionally. Sadly, these loved ones must initiate legal action with the Court. This ensures the deceased’s assets are distributed through the probate courts if their combined assets exceed a specific value. This threshold is easily met if a loved one owned real estate. If there is no trust to distribute the assets, then the process, in most cases, must go through probate courts. The probate process can be expensive, time-consuming, stressful, and subject to public proceedings. Probate can apply when a decedent signs a will, and even if there is no will ever created.
Probate is Expensive
Initiating a probate action and completing the process can be expensive. It can range from a certain percentage of the value of the total estate. In many instances, it can exceed $50,000 or even more. This can include filing fees, court fees, miscellaneous administrative fees, and hiring an attorney if required to assist with the action in Court. The executor or personal representative of an estate designated to administer the division of the estate may charge fees, too.
Probate is Time Consuming
Depending on the size of the estate, complexities of issues with the estate, and the court’s bandwidth to hear cases, a probate case can easily take over a year and even over two years in duration. If the decedent provides no will, then this can also extend its duration. State laws would apply to the division of assets. Other issues people can encounter are difficulties locating beneficiaries of a will. Another issue is if court claims are filed to challenge a will and its distribution.
Probate is Stressful
Probate is stressful and requires a lot of work that is designated in many cases, to the executor named in the will. The executor is tasked with significant responsibilities. These include filing the action and will with the court, attending multiple court hearings, dividing the assets based on the decedent’s intent, locating and notifying beneficiaries, paying taxes, paying debts, reaching out to creditors, and organizing all of the decedent’s assets.
Probate is Subject to a Public Proceeding
Many people are private in nature and would prefer not to share information on what they have accumulated throughout their lives. If a decedent signed a will, or none at all, either option may land the distribution of their estate in a probate proceeding, which is, in most cases, public. This means anybody can attend any probate proceeding and even look up documents about a probate matter.
A Legal Trust May Be a Better Option For You
Many people prefer revocable living trusts to divide their assets in the event of their passing. With a revocable living trust, assets are transferred to a legal trust entity. When someone passes, the terms of the revocable living trust will dictate the division of assets. In terms of expense, it can be much cheaper than going through the probate process as it is not subject to court proceedings. It, in turn, avoids a lengthy court process to permit the distribution of assets. Creating a revocable living trust usually involves hiring an attorney to draft the documents and assist with transferring assets into the trust. Preparing a revocable living trust does require front-heavy work, as assets must be transferred to the trust title. This process is much quicker than going to probate court. Revocable living trusts are also confidential and do not require court proceedings like the alternatives.
Let Burgos Santoyo Smtih assist you with selecting the most effective strategy to create an estate plan that suits your needs. We offer services that include the preparation of revocable living trusts, pour-over wills, advance health care directives, and durable power of attorneys, among other services. Get in touch with Contact us to get started.