What is Probate?
First it’s helpful to know a little bit about what Probate is.
It is impossible for me to define exactly what Probate will mean to you on a planning, emotional, or financial level. Your experience will depend on the type of estate you have, as well as, what you have done in advance to prepare for your passing. However, since Probate is quite often misunderstood, I offer the following definition as a guide: Probate is the court-supervised legal process whereby a deceased person’s assets are gathered, debts are paid, and any remainder is distributed to beneficiaries either through a Last Will and Testament (Testate) or based on the State Statutory scheme (Intestate). In other words, Probate is used to decide who gets your property when you are gone and to facilitate the transfer of said property.
Is Probate Necessary?
Whether or not Probate is necessary, simply depends. Again, the primary function of probate is to transfer the title of the your property to your heirs and/or beneficiaries once you have passed. If there is no property to transfer, or if you have used methods to avoid Probate such as Payable on Death accounts, Transfer on Death Deeds, or named beneficiaries, there is usually no need for probate. However, since the probate process allows payment of outstanding debts and taxes, sets a deadline for creditors to file claims, and for the distribution of the remainder of the your property to your rightful heirs, probate may still prove advantageous.
Non-Probate Transfers allow your property to legally transfer without going through Probate. Not only will these procedures save you time and money, making Estate Planning more manageable, it will benefit your family in the future.
Examples of Probate Avoidance Procedures:
Joint Tenancy:
Joint Tenancy is a type of ownership by two or more people in which each owns an undivided interest in the entire property.
Listed Beneficiary:
Listed Beneficiary is a person named to receive certain types of gifts outside probate.
Payable on Death Designation:
Payable on Death Designation is an arrangement you make to give some types of personal property to another outside probate.
Transfer on Death Deed:
Transfer on Death Deed is a deed prepared to allow your real estate to transfer outside probate.
Revocable Living Trust:
Revocable Living Trust is an entity which owns assets for the benefit of a beneficiary.
At your Estate Plan Meeting we will help you determine the best estate plan strategy for your particular situation. It is important to make matters easier for the loved ones you leave behind by planning today.