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Probate Planning - Real Estate in Probate Probate - What is it? Probate is the process where the final disposition of your wishes is executed. All debts and obligations are paid from the estate and what's left is distributed to the beneficiaries of the will. The Executor: An executor is named in the will and is responsible for paying all debts and clearing title of all remaining assets.
Most states have adopted alternatives to the probate procedures for families with no real property or with assets of $50,000 or less. These smaller estates can avoid the cost and time consuming process of probate. Larger estates may have to probate the property. Costs - ARRP maintains that the typical cost of probate runs $1,500, but this can vary. Time - The average estate is probated in six to nine months. Avoiding probate Probate process can tie up estate property for several months or even years. Probate may also be costly, with executors, courts and attorneys fees being paid in full. Finally, title must be clear 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 while trusts created at death using a will must go through probate. And much of the delay associated with probate has to do with complicated tax laws and filing requirements which can't be avoided using a living trust. Name a Beneficiary Life insurance or retirement plans which pass directly to the beneficiary by contract. That is, they are outside the will because the owners wishes were established by insurance contract or by named beneficiary of a retirement plan This is a very good way to avoid the time and costs involved with probate. It's also very flexible since the named beneficiary can be changed a 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 clearx title even if you hold a valid will. Following are some of the common methods used to avoid the delays of probate Joint tenants with right of survivorship The property will pass directly to the remaining joint tenant at your death and is not part of your probate estate. Living Trust One of the best methods of holding title to homes and other major assets is in a revocable "inter vivos" living trust to avoid probate costs and delays. Community Property With Right of Survivorship If you are married (In California: if you are registered with the state as domestic partners) and live or own property in Alaska, Arizona, California, Nevada, or Wisconsin, you and your spouse can hold title as community property with the right of survivorship. If you hold title to property in this way, when one spouse dies, the asset automatically bypasses probate and goes directly to your spouse or partner. The property may be probated on the second death unless proper financial planning has been done by the survivor.
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