People in the United States seem to dislike dealing with the probate processes more than a hangnail. Primarily because the process is stressful, expensive, and above all, time-consuming.
Under this process, all the following parties can become relevant: the government, family, friends, and creditors. Ultimately, squabbling between parties can lead to chaos and confusion, which in turn delays the process. In Florida, it can take a year to settle probate and transfer the estate to the legal heirs.
Understanding Probate
It is a formal process for settling the estate under a court’s supervision after a person’s death. Whether or not there is a Will, probate will happen unless the decedent engaged in estate planning that included a trust. A professional attorney’s advice regarding probate avoidance is something everyone should consider.
Why do People want to Avoid Probate?
There are a myriad of reasons that make people want to avoid Probate. Some of those reasons may include:
Expense
Probate requires someone’s estate to pay for several things, including the attorney’s fee, court fee, Personal Representative’s fee, and potentially appraisal fees.
Time-Consuming
The whole Probate process takes a fair amount of time before coming down to a conclusion, often leaving the involved individuals stressed and exhausted. Moreover, it demands paperwork filing since the court oversees the activities, and everything must be well-documented.
Embarrassing
Probate involves the court and can expose things the person who passed would rather have kept private such as the value of the estate, beneficiaries, and other conditions related to the inheritance.
Probate Avoidance Strategies
Many legal solutions could be employed for transferring the ownership of assets in a way that helps you avoid the probate process.
Gift
By making a gift to someone before you die, you can avoid the probate process. However this method is not generally recommended. Please seek the advice of an attorney.
Living Trusts
All the assets, be it bank accounts, investments, or real estate held in a living trust, are exempted from the Probate.
Joint Ownership
If an asset is jointly owned by someone who has the “right of survivorship,” it automatically avoids Probate. The estate shall be transferred to the surviving owner upon the owner’s death.
Payable on Death Designations
Most states allow you to add a “payable on death” designation to bank accounts. As long as you live, those funds are totally yours, but once you pass away, your beneficiary can claim the funds from the bank without going through the hassle of Probate.
Key Take-Aways
Now that you have gained an insight into the strategies used for avoiding Probate, you can protect your loved ones from the delays, cost, and stress of Probate. For more details, please visit the Kania Elder Law website and discuss your concerns with our probate attorney.