Advantages of Probate
While many people have heard of probate, often in conjunction with planning their estates, they usually are unsure as to what it is aside from it involving lawyers and a court. They’re often told by estate planning attorneys or others who have gone through probate to avoid it like the plague. More often than not, this is pretty sound advice as probate can be time-consuming and some argue it only benefits the attorney.
However, one should start with a basic understanding of what Probate is. Probate is the legal process of transferring a decedent’s estate (title) to the rightful heirs of the estate. The probate process involves (i) collecting and identifying the deceased person’s property, (ii) paying any debts and taxes, and (iii) identifying the proper heirs and distributing the estate property to them. While the court oversees this process, in most cases the work is done by the executor of the decedent’s estate with the help of an attorney.
Basically, probate is a court process used to transfer assets from a deceased individual to their heirs.
While we believe in avoiding the formal probate process through a properly funded living trust, there are some advantages to probate:
Supervision of Creditor Claims: If there are creditors’ claims against the estate, it may be beneficial to have probate court supervision so that the validity and amount of the claims can be determined.
Limited Creditors' Claim Period: While the court process itself may carry on for an extended period of time, Probate also bars creditors’ claims if they are not asserted during the “creditors’ claims period” (generally four months after the executor is appointed).
Supervision of Distribution: Probate provides court supervision which ensures that the decedent’s property will be accounted for and distributed in accordance with the decedent’s intent. Having a neutral third-party can ensure that assets are accounted for and limit the possibility of mismanagement.
Keeping the Peace: Sometimes, despite being family, people may not get along well. If family members or the beneficiaries have difficulty in doing so, probate supervision may be beneficial.
If you would like to learn more about just what the probate process entails as well as some of the disadvantages that accompany it, click here.
If you would like a free consultation to discuss probate or avoiding probate, then contact us here or call us at 909-307-6282.
