The probate process is important to distribute a deceased person’s assets to their closest family members or the beneficiaries they name in their will. Unfortunately, probate is also a long, costly, public, and stressful process. Proper estate planning can avoid probate, keep your estate secure, and support your loved ones. An experienced estate planning attorney can help you create an estate plan that meets your needs and helps you avoid probate court.

An estate plan can benefit you even if you are not incredibly wealthy; however, there are numerous drawbacks to the probate process. It can be helpful to understand how the legal process affects your estate and your loved ones when considering the benefits of an estate plan.

Why Is It Important to Avoid Probate Court?

Many people want to leave behind as much as possible for their loved ones and limit their overall personal and financial stress. Each individual, their estate, and their wishes are unique. Some of the ways you may benefit from avoiding probate include:

1.Saving Time

The probate process often takes months and can be longer if you have complex assets, numerous beneficiaries, or unclear wishes for your estate. Probate requires your assets and debts to be inventoried, valued, and distributed. It may require multiple court hearings to resolve, especially if there are any disputes during the process. Until probate is complete, beneficiaries or heirs cannot gain access to the assets in the estate.

Avoiding probate can streamline the asset distribution process significantly, as well as inventorying assets in advance, making your wishes incredibly straightforward, and planning for complicated assets.

2.Lowering Costs

Probate is a court process that involves court costs, executor and attorney fees, and costs for appraising assets. Depending on the state where you live and the size of your estate, it may also be subject to state or federal estate taxes.

Most of the costs associated with the probate process will be covered by your estate. This can impact the assets that your loved ones receive, leaving them with fewer financial benefits and potentially leaving some of your beneficiaries without an inheritance. Your loved ones may even have to be responsible for some of the costs if your estate does not cover them all. The longer the process, the higher some of these costs may be.

Avoiding probate can limit these expenses, and funds can be set aside to cover the costs that will still be necessary. Avoiding probate saves time and can further save your loved ones money. Certain methods of avoiding probate can also limit the impact of taxes on your estate.

3.Protecting Privacy

Probate is part of public record, including the contents of your will, the assets in your estate, and the beneficiaries they go to. Keeping your estate out of probate will keep this information private. This can keep your financial information private and safeguard your loved ones’ privacy.

4.Limiting Emotional Stress

Your loved ones may have to deal with the probate process shortly after your death. It is not easy for families to navigate this legal process while also managing their grief, especially when the process drags out and costs money. You can mitigate this stress and help your family have an easier time dealing with your estate by keeping your estate from entering probate.

Providing a clear plan can also limit disagreements and disputes between your loved ones. A lengthy probate process without straightforward intentions can lead to your family members disagreeing about your wishes for your assets and beneficiaries.

5.Providing Benefits Quickly

Your heirs and beneficiaries cannot access their inheritance while probate is ongoing. The beneficiaries can access the benefits of their inheritance more quickly, often immediately, if the assets are distributed outside of court, such as through trusts or making assets jointly owned.

FAQs

Q: What Are the Disadvantages of Going Through the Probate Process?

A: The disadvantages of going through probate include:

  • Time: The probate process can be lengthy, especially if you own complex assets, do not have a clear will, or there are contests of your estate plan. Your loved ones cannot benefit from the assets left to them until the probate process is complete.
  • Cost: Probate court includes court costs, attorney fees, and estate taxes. Some of these costs increase the longer the process takes.
  • Stress: Your estate enters probate after you die, so your family will have to manage this process while they are also dealing with their grief.

Q: Can An Estate Avoid Probate Court in Illinois?

A: Yes, an estate can avoid probate court in Illinois if it is under a certain value and qualities for a small estate affidavit or if certain estate planning techniques were used to avoid probate. In order for an estate to qualify for a small estate affidavit in Illinois, its gross value must be under $100,000. There must also be no disputes between heirs, and any real estate in the estate must be transferred upon death.

Q: What Assets Are Exempt From Probate in Iowa?

A: Certain assets that are exempt from probate in Iowa include property held in joint tenancy, annuities, and specific retirement benefits. Assets that pass immediately to beneficiaries, such as pay on death or transfer on death accounts, benefits, or property, are also typically exempt from probate. Any property held in a trust is also exempt from probate. When used properly, an entire estate could avoid probate through the use of trusts.

Q: Do I Need a Trust in Nebraska?

A: A trust is an incredibly useful estate planning tool in Nebraska, which allows you to transfer your estate to your beneficiaries without putting your estate through the long and public probate process. Trusts allow you to control asset distribution as a will does, but more quickly and with less hassle.

You can use both revocable and irrevocable trusts within your estate plan. Whether you use one or both of these trusts will depend on your unique assets, beneficiaries, and needs.

Contact Stange Law Firm Estate Planning Attorneys

You need a comprehensive estate plan to avoid probate. There are numerous potential estate planning tools that can provide your loved ones with substantial benefits. The primary tool used is a trust document.

Using one or multiple trusts in your estate plan can keep your assets from entering probate and limit the financial and personal impact on your loved ones. Ensuring your trust is legally valid is crucial to recover benefits. Contact Stange Law Firm to see how we can help you draft a trust.