Some financial articles insist that a will is not the best way to leave assets to heirs. But why is that? Won’t scribbling something on a napkin work? Wills often lead to long and expensive court proceedings. Countless other more-efficient ways could be used, all of which more effectively pass property to family.
Why a Will Isn’t Enough
A will without court approval is worth little more than the paper it’s printed on. Courts make sure that wills are valid, debts are paid, and – despite whatever the will may say – whether other family members might also have a legal right to a portion of the estate. Worse, because probate court files are public record, virtually anyone could access documents on file, including wills.
Once the estate attorney files papers in probate court, con artists and long-lost family members come out of the woodwork. Nearly anyone could demand a piece of the estate. And even if these claims are ultimately unsubstantiated, they could delay distribution of assets.
Oftentimes, it takes years to resolve will-related complications, leading to probate. Even simple probate matters usually cost five and seven percent of the total estate value. Your heirs could end up spending most of their inheritance in court costs, attorneys’ fees, and accounting expenses.
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Making your bank account “POD.”
Even if your bank account has a modest sum, you can leave this to heirs by assigning ownership “payable on death” POD. This designation, simply naming whoever you want as the new account owner of your passing would give your heir access to the funds. To collect in this case, the inheritor need only present your death certificate and proper identification. And the bank would turn over the funds to the POD designee without fees, fuss, or exposure. - Deeding a house.
Several inexpensive and ineffective options can be used to transfer ownership of real estate automatically, without the need for probate. Your experienced estate attorney would know which type of deed to recommend.
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Protect the inheritance.
If you own assets such as antiques, an estate attorney can create a trust to transfer ownership of the items into a trust. You can name whoever you want to act as trustee. Your estate attorney should carefully draft your paperwork to protect the money associated with antiques from secondary litigation. -
Small-estate proceedings.
For smaller holdings, most states permit shortened and simplified proceedings which avoid the costs and delay of full-blown probate proceedings. These go by various names, including “small-estate” or “voluntary-administration,” or “summary-administration” proceedings. Is your estate worth less than the limit set by law? People can distribute property without court supervision. The limit varies depending on the state, generally between $30,000.00 and $100,000.00. In California, where Skvarna Law is located, the limit is $150,000.
While most people try to avoid it, probate is often unavoidable. If you need to file probate or have questions about the process, call Vic Skvarna of Skvarna Law. We can help determine the best solution for you.
About Skvarna Law
Skvarna Law Firm operates offices in Glendora and Upland, California and provides 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, Pomona, La Verne, Montclair, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
