Avoiding Probate Ensures Privacy
If you’re just starting to consider your legacy, when you begin looking into the subject of estate planning you will see the topic of probate avoidance mentioned quite a bit. With this in mind let’s provide some of background.
Everyone has heard of the last will, and if you use your last will as the only document that states your wishes with regard to how you would like to see your assets distributed after you pass away your estate is going to pass through probate. That sounds simple enough, so why would anyone want to avoid probate? There are two reasons that most people would mention right off the bat. For one there are considerable costs involved with the probate process, including court costs, the executor’s remuneration, probate attorney fees, accountant fees, appraisal charges, and liquidation expenses.
There is also a time lag that comes along with probate, and just how long it will take for the process to run its course depends on a number of factors. These would include the probate court caseload at any given time, the complexity of the estate, and whether or not the will is being challenged. This process is going to take a minimum of months, and in some cases it can actually take multiple years for the estate to close. The heirs to the estate do not receive their inheritances while the estate is being probated.
There is a third reason why you may want to consider probate avoidance that is not as commonly talked about, which is the matter of privacy. When your estate is probated it becomes a matter of public record, and many people would prefer that the details of their final affairs remain private and not openly available to the public. In addition, this open forum allows for will challenges. So if you want to make it impossible for anyone to step forward and question your final wishes you can eliminate this possibility by arranging for the transfer of assets to your loved ones outside of the process of probate.
