WHAT IS PROBATE?
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Probate is a court-supervised process for transferring a deceased person's assets to the beneficiaries listed in his or her Will.
Typically, the executor named in your Will would start the process after your death by filing a petition in court and seeking appointment. Your executor would then take charge of your assets, pay your debts and, after receiving court approval, distribute the rest of your estate to your beneficiaries.
Simpler procedures are available for transferring property to a spouse or for handling estates in which the total assets amount to less than $100,000. The probate process has advantages and disadvantages.
The probate court is accustomed to resolving disputes about the distribution of assets fairly quickly through a process with defined rules. In addition, the probate court reviews the personal representative's handling of each estate, which can help protect the beneficiaries' interests.
One disadvantage, however, is that probates are public. Your estate plan and the value of your assets will become a public record. Also, because lawyer's fees and executor's commissions are based on a statutory fee schedule, a probate may cost more than the management and distribution of a comparable estate under a living trust.
Time can be a factor as well. A probate proceeding generally takes longer than the administration of a revocable living trust. Discuss such advantages and disadvantages with an estate planning lawyer before making any decisions.
What is an estate?
An estate is all property owned or controlled by a person, either in his/ her name, a business entity, a trust, or a joint ownership. It also includes any other money generated in the event of the person's death, such as life insurance. An estate includes:
- Real estate and all things attached (a house, rental property, etc.)
- Personal property (bank accounts, stocks and other securities, cash, automobiles, jewelry, etc.)
- Businesses and business interests (corporations, partnerships, limited liability companies, joint ventures, business property, etc.)
- Powers of appointment (the right to direct who gets what)
- Retirement Accounts, pension benefits, annuity contracts, life insurance, etc.
How an Estate Planning Attorney Can Help You?
Estate planning is often undertaken by individuals; however, to plan your estate well, you should find an experienced estate planning attorney to help you through the process. Aside from drafting a will, estate planning takes a lot of work that is often detail-oriented and time consuming. Hiring an estate planning attorney will make certain that nothing is overlooked and everything is done correctly. An attorney can help ensure that your property is transferred to those you have identified with as little trouble as possible, minimize potential taxes and fees, help you avoid the probate process, and direct arrangements once you die or if you should you ever become incapacitated.
Generally, people avoid using attorneys due to financial reasons. When planning your estate, however, it is important to hire an estate planning attorney not only to be sure everything is done correctly, but also to save money that would otherwise be lost on taxes, fees, or spent on probate court.
Estate planning services include:
- Traditional estate planning, including Wills, Revocable Living Trusts, Durable Powers of Attorney, and Advance Health Care Directives
- Advanced estate planning including Irrevocable Life Insurance Trusts (ILITs), Grantor Retained Annuity Trusts (GRATs), Installment Sales to Intentionally Defective Grantor Trusts (IDITs), Qualified Personal Residence Trusts (QPRTs), Charitable Remainder Trusts (CRTs), and Charitable Lead Trust
(CLTs)
- Business planning, including corporations, partnerships, limited liability companies, structured ownership, reorganization, succession planning
- Probate, trust and estate administration
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