There are many reasons to avoid probate when planning your estate. Avoiding probate will avoid this … [+]
There are many reasons to avoid probate when planning your estate. Avoiding probate eliminates the trouble of getting to go to court, which will be costly and time-consuming. This ensures privacy in order that an inventory of your estate assets and their value is just not filed with the probate court for everybody to see. It can allow beneficiaries to receive their inheritance more quickly through the use of probate avoidance techniques similar to beneficiary designation, co-ownership, and use of trust funds.
However, there’s another excuse to avoid probate that is commonly missed. Your heirs won’t be notified of the court records after your death. Your heirs are the individuals who would inherit your assets in the event you died and not using a will. Who your heirs are depends upon your state’s laws. They could also be different from the beneficiaries named in the need.
When probating your will, the court will often require that your heirs be notified of the court filing. This gives them the chance to come back forward and challenge your wishes. This can protect you from a nasty actor producing a false will or one obtained through undue influence by expropriating your assets, and will be a vital protection if someone has tried to make the most of you. However, it may give your heirs, who could also be unhappy that they weren’t included in the need, the chance to challenge your valid will. This may cause significant headaches and delays for the beneficiaries named in your will.
When it involves notarizing a will after an individual’s death, beneficiaries often don’t understand why they should notify the deceased person’s heirs. “But he had a will” and “They’re not getting anything, so why do we have to tell them?” are familiar refrains.
Problems may arise when identifying and trying to find the addresses of the heirs. Often the deceased has lost contact with distant members of the family. It will be difficult to place together a family tree, especially if other members of the family have died. Social media sites will be helpful, but an heir searcher who can scour public records to discover and locate heirs is commonly needed. Then, after all, the heirs should be informed that although they’ve the fitting to terminate the need, they are going to not receive anything from the estate.
To avoid this potentially unpleasant situation, it’s best to create a revocable trust during your lifetime and transfer your assets to the trust during your lifetime. If your whole assets were transferred to the trust or passed through co-ownership or beneficiary designation, you will have avoided probate. Think about tangible personal items like cars and boats. Items that require title to transfer ownership but can’t be easily transferred to a trust will be difficult. Be sure to check with your lawyer about this.
Setting up a trust is more complicated than making a “simple” will. While it is going to cost more now, it is going to most probably prevent legal fees after your death and protect your privacy.
People often desire a “simple” will, but sometimes the simpler option is not the very best. If your will leaves assets to friends, family, or a charity, bear in mind that your state’s laws will determine who can be notified of the need’s probate. If you select to maneuver forward with a will that requires probation, work together with your attorney to create an inventory of your heirs and current addresses to simplify the probate process in your beneficiaries.
