Probate Can Be Time-Consuming

Probate proceedings often take months—and sometimes more than a year—to resolve. During this period, your beneficiaries may not have access to much-needed funds or property.

The timeline can be extended even further if disputes arise among heirs or if the estate includes complex assets. Avoiding probate allows your loved ones to receive their inheritances much more quickly.

Probate Can Be Expensive

Court costs, executor’s and attorneys’ fees, appraisals, and other administrative expenses can consume a portion of your estate, sometimes 5 percent or more of its total value. By using probate-avoidance tools—a living trust, for example—more of your assets can go directly to your heirs instead of being eaten up by fees.

Indeed, for larger, more complicated estates, a living trust (also commonly called a “revocable” trust ) generally is the most effective tool for avoiding probate. A living trust involves some setup costs, but it allows you to manage the disposition of all your wealth in one document while retaining control and reserving the right to modify your plan.

To avoid probate, it’s critical to transfer title to all your assets, now and in the future, to the trust. Assets outside the trust at your death will be subject to probate—unless you’ve otherwise titled them in such a way as to avoid it (or, in the case of life insurance, annuities and retirement plans, you’ve properly designated beneficiaries).

Probate Is a Public Process

Bear in mind that anything filed in probate court becomes part of the public record. This means that anyone can discover the details of your estate, including the nature and value of your assets and who has inherited them. Avoiding probate can protect your family’s privacy and shield sensitive information from public view.

Probate May Result in Family Disputes

Probate can sometimes create or exacerbate conflict among heirs. Disputes over asset distribution or the validity of a will can lead to lengthy and expensive litigation. Clear estate planning can prevent misunderstandings and ensure your wishes are carried out smoothly.

Not Your Estate Plan’s Sole Focus

Dealing with the death of a loved one is hard enough without the added burden of navigating the legal complexities of probate. When you structure your estate to bypass the probate process, you ease the administrative burden on your family and give them peace of mind during a difficult time.

However, avoiding probate is just one part of a complete estate plan. The estate planning professionals at Ramsay & Associates can help you develop a strategy that minimizes probate while reducing taxes and achieving your other goals. Contact us today to learn more or to get started.