The Problem With Probate
What is probate?
Probate is the legal process that occurs after an individual passes away. Probate consists of: proving in court that the deceased individual’s Will is valid, identifying and inventorying property, having the property appraised, paying any debts and taxes, and distributing the remaining property as the Will directs.
The problems with probate…
The probate court has been known to have a few major disadvantages:
Expensive. The first major disadvantage is that it can become very expensive. Probate often requires legal representation and lawyers can be expensive (generally ranging between $250-$500 per hour) on top of the other fees and costs associated with the probate process.
Time-Consuming. The second disadvantage is that it can be a time-consuming process. One extreme example is the estate of Marilyn Monroe. Marilyn Monroe passed away in 1962 in California, but the probate process was not finalized until 2001! The delay occurred for a number of reasons - the main ones being that the New York Surrogate Court did not find the Will to be valid and she had a complex mix of assets, including (but not limited to) her list of designer items. Coming back down to reality, it’s not uncommon for everyday families to get into a misunderstanding that drags out the probate process for years. Especially the probated estate involved real estate (which is often the case).
Public. No one wants their personal information out there for everyone to see, but when your assets pass through probate that is exactly what happens. Intimate details about your family situation and intentions can be read by anyone once it is in the court's possession. Besides the lack of privacy, this process then opens the door for other family members to scrutinize your wishes and tie up the process further (which compounds the time-consuming nature of the process).
How to avoid probate…
Fortunately for many families, probate can be avoided and isn't always necessary. In most states, they allow property of a certain amount to pass free of probate. Another alternative to avoiding probate is to create a revocable trust. A revocable trust, or a living trust, is a trust arrangement with entities created with three distinct parties: the trustor, the trustee, and the beneficiary. In this case, the trustee of the revocable trust holds and administers assets from the trustor for the benefit of the beneficiaries. Revocable trusts are a great alternative because they avoid court approvals and the transfer of assets in a private and streamlined fashion.
Want to learn more about how you can avoid probate? Give me a call at (781) 202-6368 or email JLento@PerennialTrust.com to schedule your free estate planning meeting.
Always happy to help.
Sincerely,
Joseph M. Lento, J.D.
Attorney & Owner of Perennial Estate Planning
Other helpful readings:
Carlson, Darren R. (2014). Your 1960S Tv Guide To Estate Planning. MOTIVATIONAL Press, INC.
Nolo. (2021, April 1). What is Probate? www.nolo.com. https://www.nolo.com/legal-encyclopedia/probate-faq.html.
