The rules that apply to estates confuse people. Some beneficiaries think they can receive their inheritances right away. Some people who may benefit from creating thorough estate plans assume that existing state laws are enough to protect their loved ones.
When someone dies, their property becomes their estate. If they leave a will or other estate planning instructions, surviving family members or others with an interest in the estate must present the estate planning documents to the probate court. The courts can then oversee the probate process.
When people die without wills, then the probate courts can assist in the application of intestate succession laws. The courts help ensure that creditors have an opportunity to make claims for payment and that estate administration aligns with the instructions provided by the deceased individual and state law.
Probate proceedings can be expensive
There are court costs associated with probate court proceedings. The costs associated with court hearings become a financial obligation for the estate. The personal representative usually needs to pay for probate costs before distributing assets to heirs or beneficiaries.
Waiting for time in court may also lead to substantial delays in beneficiaries receiving their inheritances. Many people therefore prefer to keep assets out of probate court if they can by planning carefully in advance. What property needs to pass through probate court after someone dies?
Solely-owned property must pass through court
Generally speaking, any property owned directly and solely by the deceiving becomes part of their estate. Vehicles, real property and personal assets, such as home furnishings and collections, all theoretically become part of an individual’s estate. Careful planning can help people limit which assets pass through court.
Assets that they own jointly with another person are typically not part of an estate. Neither are resources held by a trust or a business. People can even add special designations to their financial accounts to arrange for them to transfer to a specific beneficiary after their death.
People typically need to have plans in place to alter ownership or otherwise bypass probate court. The specific financial and familial circumstances of the testator influence the best way to keep property out of probate court.
Creating or upgrading an estate plan with the intention of minimizing probate court proceedings can help people feel confident about maximizing what their beneficiaries ultimately receive.
