What Are the Pitfalls of Probate?

Have you ever wondered what will happen to your estate after you die? How long will it take for your loved ones to receive the estate you’ve left them? Will each receive what you’d like them to have?

If you’re like most people, your estate will go through a lengthy probate process.

What Is Probate?

Probate consists of the court proceedings that conclude all your legal and financial matters after your death. The probate court distributes your estate according to your wishes — if you left a valid will — and acts as a neutral forum in which to settle any disputes that may arise over your estate.

The probate process we have today is based largely on the medieval English legal system. In feudal times, only powerful families owned land. These large estates were normally passed down from father to son. This transfer was naturally a matter of great political consequence, and thus of great interest to the king. So the proceedings were made formal, complicated, and costly.

Over the years, while much of the legal system has been made easier and more accessible, the probate process can still be lengthy and complex.

There are a number of issues with the probate process that you need to consider.

Time

The probate process can take a great deal of time. A typical settlement time frame for many estates is from nine months to two years. Complex or contested estates can take much longer.

With few exceptions, your heirs and/or beneficiaries will have to wait until probate is concluded to receive the bulk of their inheritance.

Cost

Of course, all the probate court’s “help” with your affairs comes at a price. If you have a large estate probate can be very expensive.

Depending on the state, probate and administrative fees can consume as much as 10 percent of your estate. That percentage is calculated before any deductions or liens are taken out.

Lack of Privacy

The proceedings of the probate courts are a matter of public record. Anyone with the time and inclination can go to the county courthouse and find out exactly how much you left to each heir and to whom you owed money. This leaves your heirs with little or no privacy.

There Are Answers

Fortunately, there are strategies you can use to avoid the probate process altogether. A trust may enable you to pass your estate on to your heirs without ever going through probate at all.

Proper estate planning could enable you to pass your estate to your loved ones privately, without undue delay or expense.

The information provided here is to assist you in planning for your future. Proper tax and legal advice should always be obtained.

This material was written and prepared by Emerald Publications.
© 2008 Emerald Publications

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