For many of our clients, probate is an unnecessary process that we try to avoid. But the probate system is there for those who need it, in some cases because of lack of proper planning and in others because of the benefits and protections that probate may offer. The probate system is there to ensure that property passes to the proper beneficiaries and that creditors with legitimate claims are paid. In some cases, there may be some advantage to engage in the probate process. Let’s look at some of the pros and cons of going through probate.

The Pros
The probate process works to make sure all assets and property of a deceased person are distributed according to state law. In some cases, such as when a person passes away having no will or trust to direct distribution of their assets, the probate process can be very helpful. Here are some potential advantages of having the probate court involved in wrapping up a deceased person’s affairs:

• It provides a procedure for distributing the deceased person’s property if the deceased person did not have a will.
• It validates and enforces the intentions of the deceased person if a will exists.
• It ensures that taxes and valid debts are paid, finalizing the deceased person’s affairs rather than leaving ambiguity and uncertainty for the remaining beneficiaries.
• If the deceased person had debts or outstanding bills, probate provides a method for limiting the time in which creditors may file claims, which may result in discharge, reduction, or other beneficial settlement of debts.
• Probate can be advantageous for distributing smaller estates in which estate planning is less unaffordable.
• It allows for third-party oversight by a respected authority, the probate court, potentially limiting conflicts among loved ones and helping to ensure that everyone is on their best behavior.

The Cons
While probate is intended to work fairly to facilitate the transfer of assets and property after someone dies, there are drawbacks to the probate process.

• Probate records are public. Lots of information, including personal family and financial information, become public knowledge.
• Probate is costly. The considerable costs include court fees, attorney’s fees, and executor fees, all of which get deducted from the value of what you were intending to leave to your loved ones.
• Probate is time-consuming. Distribution of assets to your beneficiaries can be delayed for months and sometimes years.
• Probate can be complicated and stressful for your executor and your beneficiaries.

While probate is a process available to ensure the fair distribution of even small amounts of assets and property, it can create undue costs, delays, and loss of privacy. With proper planning, the probate process can be avoided. Where beneficial, the probate process is there to ensure that matters are resolved in an orderly fashion. Many people prefer to use strategies to keep their property out of probate when they die.

Our office can help you to develop a strategy to avoid probate and make life easier for the next generation. Please schedule an appointment with us to explore your options and to create a comprehensive plan  to benefit you and your loved ones.