Real Estate Calls for a Real Attorney

You might have wondered about the need to avoid probate. Read on and learn what you could be avoiding if you avoid probate.

Probate May be Inevitable

Probate is the legal means of administering an estate. The key function is to ensure that the estate passes to the beneficiaries and that anyone owed money by the estate has a chance to file a claim. Some states allow very small estates to undergo a shortened probate process or skip it in rare instances. However, you can keep some of your property out of probate. That can mean a smoother estate process. If you avoid probate, you can avoid the following issues:

You can avoid lengthy court proceedings – It can take several months for the simplest of estates to pass through probate. The reason for the long process has to do with the backlog of cases in the county system and with the waiting periods that allow creditors and others to come forward with claims on the estate. The long process means that beneficiaries must wait for probate to be complete before taking ownership of their inheritances if they are included in the probate filing.

You can avoid the lack of privacy – Probate means the publishing of a last will and testament. This document should be private but is part of the county clerk's public record. There are private alternatives, as discussed below.

You can avoid spending money – Probate costs money. Though the fees vary, the estate or family members must pay the filing fees to file the will. During probate, expenses continue to arise. Often, a professional real estate appraisal must be paid for, a bond purchased for the executor, and the costs associated with maintaining estate property must be borne.

What to Do Instead

You may have no choice but to file for probate, but you can reduce the property that probate covers. For example:

1. Speak to an estate lawyer about using a trust. Everything in the estate can be held in a trust. This is private and allows the distribution of the estate immediately.
2. Perform a quit claim deed on the real estate. Talk to your estate lawyer about adding names to the deed so that home is free of probate after the owner passes away.
3. Cover bank and investment accounts with a document. Payable-on-death (for banking institutions) and transfer-on-death (at investment brokerages) allow named individuals to automatically inherit funds in the accounts. No probate is involved.

To find out more about avoiding probate, speak to an estate planning lawyer.