Planning ahead benefits everyone involved. This applies to vacations and job interviews as much as to end-of-life concerns. Outlining your priorities and anticipating potential challenges makes sense in everything, including your estate. Clearly establishing protection over wealth and assets protects your family if you pass away or become incapacitated. However, simply meeting with an attorney and signing a trust does not necessarily complete the process. In fact, failure to properly fund your trust could force your assets through the probate process.
Understanding the Probate Process
While the term sounds scary, never fear. The probate process is a relatively simple concept:
Probate: A legal procedure which transfers assets from the deceased to their heirs or beneficiaries.
When someone fails to execute a will or to clearly outline their estate plans before they die, a judge enters the picture. He or she will grant legal permission for the decedent’s assets to passed to their heirs. Without a will, the court steps in. They ensure the personal representative administers and distributes the estate according to the terms of the will. This process, called probate, is common. The probate process invites a judge’s involvement in asset distribution. It also introduces everyone to a very public, time consuming, and expensive process.
Asset Distribution
Depending on the value of the assets to be distributed through the probate process, some jurisdictions have a simplified probate proceeding. However, this can still be a time consuming and public proceeding.
Not every asset goes through the probate process. Anything owned solely by the deceased, like a home or vehicle, will be subject to probate. Any asset that has a surviving co-owner or beneficiary designation will transfer to the named individual automatically upon your death. Property held in a living trust is also exempt from the probate process because the assets are deemed to be owned by the trust, not you.
Avoiding Probate
Probating a will can be stressful. In the days and weeks following the loss of a loved one, the last thing family members want is a legal battle for their inheritance. In especially large estates, property may need to be professionally appraised and inventoried. Debts and taxes will also need to be paid before the estate can be fully settled. The attorneys who handle these tasks will also take a chunk of the money for their involvement in the administration of the estate. Also, since probate is a matter of public record, there is a lack of privacy to consider. It’s no wonder so many people hope to avoid probate altogether.
Revocable Living Trusts to Avoid the Probate Process
One of the most common ways to avoid probate is to use a revocable living trust to protect your assets. In order for the trust to keep your assets out of probate, the assets have to be funded into the trust while you are alive. Failure to complete this step will lead your family to probate court, even if it is just to have the assets transferred to the trust.
If you have successfully funded your trust, your assets will be administered as you have directed in your trust once you pass away, without court involvement. The result is the transfer of your assets easily, timely, and privately.
If you have questions about funding your trust, please give us a call. We can review your assets and ensure that everything is in place so your family can have a smooth administration, without court involvement. When it comes to the future, leave nothing to chance.
About Skvarna Law Firm in Glendora and Upland, California
A skilled attorney can assist with your estate plan. Contact us today to learn about your options (909) 608-7671. We operate offices in Glendora and Upland, California. We provide legal services for individuals living in San Bernardino, Los Angeles, Orange and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
