Whether you have recently drafted a last will and testament or you finalized your estate plan years ago, knowing how the probate process works is essential. It helps to ensure you create a comprehensive plan ready for the legal processes and procedures it may face after you pass.
Getting your final documents together is often daunting. However, if you know the ins and outs of court procedures, it can help to simplify matters for your loved ones after you pass.
What is probate?
Depending on the specific situation, an estate may go through the probate process to ensure all property and assets end up with the correct beneficiaries. According to the American Bar Association, the executor of the estate appointed in the last will and testament must gather all property and assets, resolve any unpaid expenses owed by the estate, keep the property safe and secure and then distribute the remaining property as directed in the will.
What estates go to probate?
There are circumstances that allow estates to avoid the probate process altogether. For example, property and assets placed in a living trust transfer directly to beneficiaries without going through probate. Assets, such as retirement plans, 401k policies or life insurance policies that have a named beneficiary, may pass instantly at the time of death as well.
If the value of the deceased’s estate is less than $20,000, the surviving partner or spouse may receive it without probate. Other, simplified probate procedures are also available to those who qualify.
It is helpful to understand how the probate process works so you can create an estate plan designed to meet the needs of your specific situation.
