Estate planning probate allows individuals to execute a legal will, appoint an estate administrator, and designate beneficiaries to receive inheritance property. Probate is the legal process required to settle decedent estates. Without estate planning, inheritance property will be distributed according to probate laws of the state where decedents reside.

Dying without having estate planning probate procedures in place creates a heavy burden for loved ones. Unless you are a multi-millionaire with a multitude of valuable assets, estate planning can be accomplished in less than a day.

Estate planning can be accomplished by various means. Most people retain the services of professional estate planners to ensure their last will is legally-binding. Individuals whose estates are valued below $50,000 sometimes hire an estate planning lawyer to draft a simple will. Others purchase will planning kits through office supply or online stores.

Probate can be complicated regardless of how much or how little you own. Therefore, it is strongly recommended to work with a professional. Most lawyers and estate planners charge a nominal fee for executing a last will and testament.

Simple estates can be protected for less than $100 and a few hours of time. Larger estates will require different strategies and inheritance asset protection costs will be higher, but the price is miniscule compared to costs involved without having estate planning measures in place.

The probate process can last between six and nine months, or longer. Upon death, an original copy of the last will is presented to the probate court. A judge reviews the will and confirms the designated estate executor; giving them authorization to manage the estate.

Probate executors are responsible for obtaining property appraisals, paying outstanding debts, submitting documents for transfer of financial assets, maintaining real estate holdings, contacting government agencies such as Social Security or Medicare, and various other duties.

Once the estate is settled the probate administrator provides documentation to the court. At this point, inheritance assets can be distributed to named beneficiaries. Each beneficiary signs a document stating they received the intended inheritance. Forms are provided to the court and once inheritance property is distributed the probated estate is closed.

If a person dies without engaging in estate planning, probate can be prolonged. The decedent’s property is usually given to the surviving spouse or direct lineage heirs such as children, siblings, or parents.

When inheritance property is held in probate for long periods of time its value can depreciate. Add in probate costs and estate management fees and inheritance assets can quickly be depleted; leaving nothing for heirs.

Individuals can take measures to keep certain assets out of probate. Transfer-on-death beneficiaries can be established for retirement accounts and financial portfolios, as well as titled property such as real estate or automobiles. Payable-on-death beneficiaries can be established for checking and savings accounts and life insurance policies. Estate planners can help individuals develop appropriate strategies to avoid probate and expedite transfer of inheritance property.

Individuals whose estate is valued over $100,000 should consider establishing a trust. Several types of trusts exist and each offers unique asset protection strategies. Probated estates are a matter of public record; whereas trusts are private and can only be viewed by the Trustee and designated beneficiaries. Inheritance property transferred to trusts is exempt from probate and in many cases, exempt from inheritance tax.

Estate planning probate is not difficult. The only requirement is to legally document owned property and who should receive it upon your death. However, estate planning is an ongoing process. Trusts and last wills should be updated when major changes occur such as death or divorce from a spouse, or when assets are bought or sold.

Banks and credit unions often offer complimentary estate planning consultations to their customers. Probate attorneys can assist with estate planning, as well as estate planners who specialize in establishing wills and trusts. The American Bar Association provides a list of nationwide estate planning probate lawyers via their website at ABAnet.org.

Author Bio: Simon Volkov is a California real estate investor and probate liquidator who specializes in providing resources regarding inheritance property and probate. His website includes a comprehensive estate planning probate article library available at www.SimonVolkov.com.

Category: Legal
Keywords: estate planning probate,estate planning,last will,trusts,probated estates,inheritance property