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Probate: How to Avoid it Probate is the legal process by which your last will determines how you want your assets to be handled at your death. This is where your assets are netted of all outstanding debts, taxes and other expenses. All debts and obligations are paid from the estate and whats left is distributed to the beneficiaries of the will. It is the final disposition of your wishes. The Process An executor is named in the will and is charged with paying all debts and clearing title of all remaining assets. The executor can be held liable by the beneficiaries and can be monitored by courts. It is serious business for which the executor is often paid. If an executor has not been named in the will the courts do have the right to use a court appointed executor to fulfill your final wishes. Simple Probate: Most states have adopted alternatives to the probate procedures for families with no real property or with assets of $50,000 or less. These simplified procedures can save time and the costs associated with probate. For those estates that are larger you may have to probate the property. Property that passes at death through a revocable living trust is transferred to the trust, administered by a trustee who can charge fees, and then transferred from the trust to the beneficiary. These costs and added tax filings should be considered if you decide to create a Living Trust.
Probate process can be slow and can tie up estate property for several months. Probate may also be costly, with executors/courts/attorneys fees being paid in full and title cleared of all debts and claims before distribution to the heirs. There are several methods that can be used to avoid the probate: Revocable Living Trusts: Property held in a living trust is not subject to probate. But trusts created at death using a will must go through probate. And much of the delay associated with probate has to do with convoluted tax laws and tax filing requirements which cant be avoided using a living trust. Name a Beneficiary: Life insurance or retirement plans which pass directly to the beneficiary. This is a good way to avoid the time and costs involved with probate. Its also very flexible since an owner can easily change a beneficiary at any time Title Even with a proper will, buyers of your home have no legal assurance that the property is actually yours to sell. It is the probate process that gives courts a methodology to clear title even if you hold a valid will. Following are some of the common methods used to avoid the delays of probate
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