Why You Should Avoid Estate Probate
There are two basic ways of planning for the distribution of your estate's assets upon your death. You can draft a will to indicate how you would like them distributed; or you can establish a trust containing your assets which will name your heirs as beneficiaries upon your death. If you decide to use a will to finalize your wishes, your survivors will be faced with the estate probate process. Anyone who is doing estate planning should become informed on exactly what the estate probate process entails. And the disadvantages of the estate probate are numerous, at least as far as your survivors are concerned. First, probating a will usually takes between a year and eighteen months, and that is if there are no unforeseen complications like a disgruntled relative choosing to contest the will. If you want to make sure your survivors are provided for as quickly as possible after your death, you should avoid estate probate. If you have a living trust instead of a will, on your death your successor trustee will immediately step in to see that your assets are distributed according to the terms of the trust. There will be no court involvement, as there is in the estate probate process. A will is a public document. If you and your family would prefer to keep your business private, you should avoid estate probate. If you leave a will, your executor will be required to publish public notice in the local newspapers so that any creditors will have a chance to file their claims against your estate. And the names of your beneficiaries will not be recorded for the world to see if you opt for a living trust. You should also avoid estate probate because it is expensive. All the costs of settling your estate through the courts will be taken from your estate. While you may initially balk at the expense of creating a living trust, that expense weighed against the cost of estate probate will seem insignificant, especially your estate is significant. The price of a respected estate attorney is worth every penny to your survivors, and the time it will take him or her to put your wishes in trust form and transfer your assets may not be nearly as long as you anticipate. You should avoid estate probate by putting your assets in trust your estate will not need to have its own tax IS number, nor will its executor have to file an estate income tax return. Any income accruing to your trust after you die will be reported on your final personal tax return, under your Social Security number. Your final tax return is the only report your Successor Trustee will have to make the Federal government. Finally, avoiding estate probate will spare you the task of finding an estate executor. While asking someone to serve as your executor may be a sign of the great esteem in which you hold that person, it is also asking him or her to devote at least a year to the process of settling your estate probate, and refereeing any disputes among your heirs. |
