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Three Reasons to Avoid Probate

Posted on 08 Jun 2011 by admin | Filled under: uncategorized

It used to be that probate was accepted as a necessary part of settling a loved one's estate. Now, however, it has become increasingly common for people to plan their estates so that the probate process is minimized, or simply avoided altogether.

Why avoid probate? There are quite a few reasons, but here are three of the most compelling:

1.To Free Up Your Assets. Have you ever heard of property being "tied up in probate?" It's not just a euphemism – it can really happen. Probate is designed to provide for the orderly transfer of your assets to the appropriate heirs and beneficiaries. But, because of the red tape that's often involved in court proceedings, your loved ones can be denied access to bank accounts, real estate, or other property for weeks or months while your estate is sorted out. Planning your estate so that your property is transferred outside of probate can allow your loved ones quicker access to key items.

2.To Pass on Your Property to Your Loved Ones, Not the Court or Lawyers. Probate can be expensive. There are filing fees that must be paid to the court, plus lawyer's fees, and often appraiser's and accountant's fees. The costs involved are often larger for bigger estates. And if there's a will contest or a dispute with a creditor, the process can quickly become very expensive. Who pays these bills? Your estate. This means that every penny paid in settling your estate comes out of your loved ones' inheritances. Avoiding probate can mean that your estate is settled in a more cost-effective manner.

3.To Maintain Your Privacy. Probate is a court proceeding, which means that all documents filed in connection with probate are accessible by the public. Your Will is one of these documents, and it may contain information you don't want to make available to your neighbors, your co-workers, or your nosy second cousin. In order to keep your estate plan and the rest of your information out of the public eye, you'll need to take the necessary steps to avoid probate.

There's a variety of estate planning tools available to help you transfer your assets outside of probate. Your estate planning attorney can help you choose the options that are appropriate for you.