Most people’s estates pass through probate when they die. This is a process whereby the court supervises an executor’s execution of the deceased’s will or intestate process.
Some people prefer to avoid probate altogether, and there are several legitimate ways to do so. If you’re wondering whether avoiding probate is a goal worth pursuing, know that there are several reasons why it is worth considering.
Your loved ones will be saved time
It can take anywhere from a few months to a few years for an estate plan to pass through probate. The timing depends on the complexity of the estate and on people’s reactions to the instructions within it. The longer it goes on, the more probate is likely to cost, and that money comes out of the estate itself.
You’ll keep the details of your estate private
Imagine you are a business owner in a highly competitive market. People’s perception of your success can count for a lot. If knowledge of how well or badly you were doing at the time of your death got out, it could give your competitors an advantage and potentially reduce the value of the business you left behind. As probate records are usually public, some prefer to avoid it altogether to keep their affairs private.
You’ll reduce the chance that others can claim part of your estate
An essential step in probate is the executor informing any creditors you owe that you have died. Creditors can then apply to reclaim some of the money you owe from your estate. Only once the probate court has decided which creditor is entitled to what assets can the executor distribute anything left to your chosen beneficiaries. Passing assets to people via trusts and other means that avoid probate reduces the chance creditors can lay claim to them.
Learning more can help you decide whether probate is something you are happy for your estate to pass through or whether it’s a reality worth avoiding.