Probate can be avoided with proper estate planning.
The Street’s recent article on this subject asks “What Is Probate and How Can You Avoid It?” The article looks at the probate process and tries to put it in real-life terms.
Probate is an estate administration process that works within a probate court with a probate judge presiding over the proceedings. Usually, surviving families and other interested parties initiate the process to address issues relating to the deceased individual’s estate settlement. These include:
- The handling of the deceased’s valid will;
- Properly citing and categorizing the deceased’s assets;
- Appraising the deceased’s estate and property;
- Paying off any of the deceased’s existing debts; and
- Distributing the deceased’s property to those directed by the will (or, if there’s no will, the probate court will direct the distribution of estate assets, according to the laws of intestacy).
The personal representative (also known as an executor) handling the deceased’s estate will typically start the process with the help of a probate attorney. Here are the basic steps:
File a Petition. The estate’s personal representative will file a request for probate where the deceased resided. Once all the required paperwork is in order, the probate judge will officially open the case.
Notice. The personal representative must send a legal notice to all applicable beneficiaries, heirs, debtors, and creditors that the deceased’s estate is officially in probate.
Inventory Assets. The personal representative will then collect, list, and provide a value for all of the deceased’s assets and supply this to the court.
Pay the Bills. The personal representative will need to pay all outstanding debts owed by the estate.
Complete Any Tax Returns. The estate may also have existing tax returns that need to be filed. An accountant can be hired by the personal representative to work on this, or the personal representative may choose to file the taxes on his or her own.
Pay the Heirs. The personal representative can now distribute the remainder of the estate to any heirs, according to the will’s instructions.
Close the Estate. Finally, the personal representative will file paperwork with the court and file to close the estate.
An experienced estate planning attorney licensed to practice in your state will be able to explain what strategies are used to avoid probate, how to remove certain assets from the process, or whether it needs to be avoided at all. In some regions, probate is swift, while in others it is long and tiresome. A local estate planning attorney is your best resource.
Reference: The Street (July 29, 2019) “What Is Probate and How Can You Avoid It?”
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