“Probate” is the formal legal process of appointing a responsible party, a “Personal Representative” to settle a deceased person’s debts and distribute their assets according to their Last Will and Testament or state Intestacy Laws. While Probate is a necessary legal process for administering a deceased person’s estate when they do not have a solid Estate Plan in place, there are several reasons why reputable Estate Planners tell you to avoid it:
1. Time and money: Probate can take months or even years to complete, depending on many factors (ex: disputes among heirs or creditors). During this time, beneficiaries may not have access to the assets. Court and administrative fees, ongoing expenses, and other costs can add up over time.
2. Public Record: Probate is a public process, meaning details about the deceased’s assets, debts, and beneficiaries become part of the public record. This lack of privacy can expose beneficiaries to unsolicited contacts or even fraud!
3. Complexity and Conflict: Probate proceedings can be complicated, especially for those with significant debts and/or assets. In rare occasions, disputes among heirs exasperate the already complex process.
4. Loss of Control: The court oversees the distribution of the estate, and decisions must comply with local laws and procedures. If no will exists, the estate is distributed according to state intestacy laws, which may not align with the deceased’s wishes.
If you need help protecting your money and loved ones in the event of death or disability, call us at 301-696-0567 or self-schedule online at www.lenaclarklegal.com. Sign up for our newsletter: bit.ly/LOLACnewsletter