If you have a will or are thinking about preparing one, you need to understand how a will works after your death. The succession process is neither cheap nor fast. It can take several months and can last for years after your death. There are several steps in the succession process. Your state’s probate court will control the process. All probate courts across the country follow virtually the same basic processes and steps, which typically include:
- File the deceased person’s will with the local court
- Notify heirs, creditors and the public that you are, indeed, dead.
- Identify and inventory the assets of the deceased.
- Have the property appraised
- Pay all debts, including estate taxes, if any.
- Have the will “proven” valid before the court
- Distributing your assets
The cost of probate may include appraisal costs, executor fees, court costs, costs of a type of insurance policy known as a bond, legal fees, and accounting fees. When you add it all up, probate can cost between 3 and 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.
It is said that the reason for having such a lengthy and expensive process is to prevent fraud in the transfer of property and to protect heirs by quickly resolving claims that creditors have against a deceased person’s property. The reality is that most estates are transferred within a close circle of family and friends and very few estates face potential fraud or creditor claims. Most people do not need the so-called estate benefits. Probate is often classified as an expensive and time-consuming process.
As an alternative to probate, there are many legal methods to avoid it altogether. Because bequeathing assets in a will typically results in probate, strategies must be implemented to avoid probate. The most common methods to avoid probate are:
- Revocable Living Trust
- Joint Tenancy and Tenancy by the Entirety
- Appointments payable on death
- Life insurance
- Gift planning
Keep in mind that these probate avoidance methods can and should be used together as part of an estate plan. You should already have a pretty good idea of the value of your estate so you can make smart decisions for your estate plan. Remember that what is right for one person may not be right for all. Get a plan specific to your situation and needs by visiting your attorney. Make sure you take the necessary steps today so that you can make a difficult time easier for your loved ones in the future.
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