Avoid Court Room Fireworks
Observing July 4th and Understanding Probate
The Fourth of July is most often associated with family and fireworks. So, as you’re grilling hot dogs and burgers or lighting sparklers and firecrackers, we want to remind you that one of the most important things you can do for your family is be proactive with your estate planning.
As part of our Estate Planning and Probate Summer Series, we’re sharing the basics about PROBATE, an often confusing and frustrating process for families after a loved one has passed away.
Tales from Probate…
A man and woman who were together for over 40 years, lived together and shared everything, but the couple were never married. The man received a large financial payout and died shortly after.
Upon his death, the woman paid for all the funeral arrangements and communicated that her partner’s intention after his death was that she would receive whatever was in his estate.
However, the man had four children prior to his relationship with the woman. He had no relationship with the children and the woman had never met them. Because there was nothing in the statute that allowed her to receive anything from the estate and there was no estate planning in place–for neither the woman nor the children, approximately $200,000 will most likely go to the state.
The best the woman could do was recover the funeral expenses she paid.
What is Probate?
Probate is a legal process that focuses on the authenticity and validity of a will, which includes reviewing and analyzing a will in regards to a deceased person’s assets. The probate process also sets in motion the clarification and determination of any inheritors.
When there is no will, the estate is considered “intestate” within the probate process, and the state decides where and how your assets are distributed.
How long does Probate typically take?
Probate can take up to two years or even longer for contested estates. For small, simple estates, probate can take from six months to a year on average. The more complicated the estate–business types, outstanding debts, taxes, and contested claims between family members–the more difficult it is to navigate and the longer it takes to resolve. The longer the probate process takes, the more expensive it is overall.
How much does Probate cost?
The cost of Probate depends on the laws in your state and your attorney, who may charge a flat fee or hourly fee. There are court and filing fees, which can add up if the probate turns into a lengthy process that is slow to resolve. There are other expenses that can be associated with probate, too. For example, outstanding debts, notifying creditors, and inheritance taxes can all be part of paying for probate proceedings.
Can Probate be avoided?
For small estates, usually valued at $50,000-$100,000 or less, an estate can be distributed by affidavit. But typically, the best way to avoid probate is to work with a trusted and knowledgeable attorney to develop a comprehensive estate plan. An estate plan can help you avoid probate, and in cases where probate is still necessary, an estate plan and skilled attorney can help you navigate any outstanding requirements in a way that is less time consuming and less stressful.
