If you have a will or are thinking about preparing one, you should understand how a will works after you die. The probate process is neither cheap nor fast. This can take several months and can last years after you die. There are several steps in the will process. Your state’s Probate Court will control the process. Probate courts across the country all follow the same basic process and steps, which usually include:
- Submitting the will of the deceased to the local court
- Tell your heirs, creditors, and the public that you have indeed died
- Identifying and inventorying the property of the deceased
- Own a property that is appraised
- Pay all debts, including estate taxes, if any
- Have a will that is “proven” valid in court
- Share your treasure
Probate fees can include appraisal fees, executing fees, court fees, fees for a type of insurance policy known as a surety bond, legal fees, and accounting fees. When you add it all up, a will can cost anywhere from 3 percent to 7 percent of the total real estate value. And if your estate includes property in more than one state, it may be subject to separate probate processes in all applicable states.
It is argued that the reason for having a lengthy and expensive process is to prevent fraud in transferring property and to protect heirs by promptly settling creditor claims against the property of the deceased. The reality is that most properties are transferred within a close circle of family and friends and very few estates face potential fraud or creditor claims. Most people don’t need the so-called probate benefits. Probate is often categorized as an expensive time-wasting process.
As an alternative to wills there are many legal methods of avoiding wills completely. Since bequeathing property in a will usually results in a will, a will evasion strategy must be implemented. The most common methods of will evasion are:
- A living trust that can be canceled
- Co-rental and general-tenant
- Appointment to be paid at death
- Life insurance
- Gift Planning
Keep in mind that these will evasion methods can and should be used together as part of an inheritance plan. You should already have a pretty good idea of the value of your property so you can make smart choices for your property plans. Remember that what is right for one person may not be right for everyone. Get a plan specific to your situation and needs by visiting your attorney. Make sure that you take the necessary steps today so that in the future you make a difficult time easier for your loved ones.
