Probate is required when a person passes and leaves behind assets that are solely in their name. A probate case, overseen by the court, is the process designed to validate the deceased person’s will if one exists, pay off any outstanding debts and taxes, and distribute the remaining assets to the rightful heirs or beneficiaries.
Typical scenarios requiring probate include assets that are owned solely in the name of the deceased person or if there is no designated beneficiary or co-owner of assets. These assets, held in the deceased person’s “estate,” can include real estate, bank accounts, investment accounts, etc. If assets total more than $184,500, probate will be initiated.
Other instances where probate may be required is if there are disputes among relatives, friends, business partners, etc., over the validity of the will or the rightful beneficiaries.
And since probate court is a public matter, creditors will be notified and debts will be settled from the estate’s assets prior to distribution to heirs or beneficiaries.
A Revocable Living Trust can avoid Probate. The Trust is made while a person is living and can name beneficiaries of assets, including loved ones, family, friends, charities, etc. By funding your Trust, meaning assets hold title in the name of the Trust, ownership is transferred directly to the intended heir or beneficiary according to a person’s wishes and, therefore, avoids Probate.
If you need legal assistance in the Probate process or you need our help to prepare an estate plan to avoid Probate, give us a call today.