If you have a will or are thinking of preparing one, you should understand how a will works after your death. The probate process is not cheap or fast. It can take several months and can continue for years after you have passed away. There are several steps in the probate process. The Probate Court in your state will control the process. Probate courts across the country follow much the same basic processes and steps, which generally include:
- Filing the deceased person’s will with the local court
- Notify heirs, creditors and the public that you are, in fact, dead
- Identify and inventory the assets of the deceased person
- Have the property appraised
- Pay all debts, including estate taxes, if applicable
- Have the will “proven” as valid in court
- Distributing your heritage
The cost of probate may include appraisal costs, executor’s fees, court costs, the costs of a type of insurance policy known as a surety bond, legal fees, and bookkeeping fees. When you add it all up, probate can cost anywhere from 3 to 7 percent of the total value of the estate. And if your estate includes property in more than one state, you may be subject to separate probate proceedings in all applicable states.
The reason for such a lengthy and expensive process is said to be to prevent property transfer fraud and protect heirs by quickly resolving claims creditors have against a deceased person’s property. The reality is that most property is transferred within a close circle of family and friends and very few probates face potential fraud or creditor claims. Most people don’t need the supposed benefits of probate. Probate is often classified as an expensive, time-consuming process.
As an alternative to probate, there are many legal methods to avoid probate altogether. Because the bequest of property in a will usually results in probate, strategies must be put in place to avoid probate. The most common methods to avoid succession are:
- Revocable Living Trust
- Joint tenancy and tenancy by the whole
- Designations payable on death
- Life insurance
- gift planning
Keep in mind that these methods of avoiding probate can and should be used together as part of an estate plan. You should now have a pretty good idea of what your estate is worth so that you can make smart decisions for your estate plan. Remember that what is right for one person may not be right for everyone. Get a plan specific to your situation and needs by visiting your attorney. Be sure to take steps today to make a difficult time easier for your loved ones in the future.