Let’s face it; probate gets a bad rap. In fact, many people take pains to avoid probate when deciding how to divide their money and property when they die. Probate avoidance is regularly promoted by estate planning attorneys across the nation. However, contrary to popular belief, the process is not an inherently bad process. So, you need not always avoid probate.
Probate Pros & Cons
The court-supervised process of distributing a deceased person’s money and property, probate offers both pros and cons. In most cases, people emphasize the complexities associated with court involvement. Namely, court supervision makes the process of distributing money and property a public proceeding. As such, it is subject to timelines that are slow and often drawn out. The cost of court involvement also complicates matters.In most cases, people emphasize the complexities associated with court involvement. Namely, court supervision makes the process of distributing money and property a public proceeding. The court-supervised process of distributing a deceased person’s money and property, probate offers both pros and cons. In most cases, people emphasize the complexities associated with court involvement. Namely, court supervision makes the process of distributing money and property a public proceeding. As such, it is subject to timelines that are slow and often drawn out. The cost of court involvement also complicates matters.
Negatives as Positives
These factors vary depending on the value of the money and property in question. What’s more, different state laws govern the proceeding. However, many of these seemingly negative attributes emerge as positive ones in limited circumstances.
While evaluating your options, consider the benefits of probate which outweigh the cons in the following situations:
- People feel cautious regarding the proper execution of the deceased’s wishes.
- Family disputes arise.
- Significant debt and concern emerge regarding the estate’s ability to pay those debts.
Let’s consider each of these factors individually.
Concerns about the Proper Execution of Wishes
In some instances, identify individuals whom you believe will honor your wishes. This applies to the way someone manages your money and property. In such cases, the probate court oversees the process. This ensures everyone follows your wishes as laid out in a documented plan. This applies if the request follows your state’s default rules.
Concerns about Family Disputes
When family disputes arise, probate proceedings may be warranted. For instance, if heirs fight, probate decides who receives the decedent’s money and property. Although people value privacy relative to family matters, the public nature of probate proceedings promotes accountability among family members. The judge may restrain unscrupulous heirs throughout the proceedings.
Avoid Probate at your peril?
The formalities of probate proceedings also prompt more reverence for your wishes. As a result, when dissatisfied heirs review your outlined wishes, they may be forced to comply because of the court’s involvement. Moreover, a finality applies to the judicial processes. This could further encourage an individual to honor the judge’s ultimate decision. Whether court involvement preserves family dynamics depends on the specific circumstances. However, the court’s objectivity often eases the process.
Significant Debt and Insolvency
When someone dies, the law requires that the estate spay off any of the decedent’s outstanding debts or bills. This requirement proves challenging if the bills and debts remain relative to the estate’s value. With insolvency, the person loses access to money to pay bills or debts. Insolvency may also exist at death if someone dies owing more than the value of their estate.
Pursue or Avoid Probate?
The probate process proves valuable in such circumstances. This is because the court determines how much to pay creditors. Further, because of the structured nature of probate processes, creditors requiring payment from the estate must submit to the court’s requirements. One requirement includes that they make their requests known within a limited time frame. Failure to adhere to the court’s timeline restricts a creditor’s ability to show up in the future and demand payment. In most instances, the debts not satisfied remain lost. As a result, probate facilitates greater levels of loan forgiveness for an estate. What’s more, the probate process may facilitate paying off the estate’s outstanding taxes. By handling these elements, the court-supervised provisions support settles the estate in a way that avoids future issues.
What’s next?
Making decisions about handling money and property when emergencies arise requires the consideration of many different factors. Those discussed above reflect only a small sample. Therefore, make sure you understand exactly what money and property remain at issue. You should also review the nuances of the probate process in your state. Also, consider the overall goals and values you want to preserve by passing on your money, property, and legacy. In assessing these factors, consider the available options and select the one most likely to produce the desired outcome.
About Skvarna Law in Glendora & Upland, California
Skvarna Law Firm operates offices in Glendora and Upland, California. Also, we provide legal services. We cover San Bernardino, Los Angeles, Orange, and Riverside Counties. This includes several cities. Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Pomona, La Verne, Montclair, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma.
