Probate is something a lot of people have heard of in the context of estate planning. You may have read a novel where a person’s will is subject to probate, or seen it play out on TV.
But until you actually go through it, you may not really have a good sense of what probate entails — and what a giant hassle it has the potential to be.
There are approximately 2.6 million probate causes filed annually in the U.S. each year, according ProbateCourtBond.com citing data from the National Center for State Courts. So clearly, a large number of estates have to go through probate each year. But it could pay to help your loved ones avoid probate, which is a process that wills generally have to go through.
Here are some of the reasons it pays to try to avoid probate when possible.
1. Probate can be very slow
You might assume that because probate is such a common thing, the court system knows how to handle it quickly. The reality is that probate could take many months, and in some cases, years. And you do not need to have a large estate for probate to take a very long time.
Even if you have a smaller estate, your loved ones could end up subjected to a very lengthy probate process. That could mean that your loved ones are forced to wait a long time to get their inheritance.
In some cases, that could mean that your loved ones might need to pay for certain estate-related expenses out of their own funds. That could be a huge source of stress.
Imagine you did not prepay for your funeral. Your loved ones may need to bear that cost. But if they cannot access your assets because they’re tied up in probate, they may need to dip into their own cash reserves to cover that cost. If your loved ones don’t have the money, they could end up taking on debt. That could add a layer of stress at a time when your loves ones are a mess emotionally.
2. Probate can be very expensive
Not only can the probate process be very lengthy, but it can also be costly. The exact cost will generally hinge on how complicated your will is and where you live. But your loved ones could lose a chunk of their inheritance to court and attorney fees.
If you’re only leaving behind a modest sum, your heirs could end up with a much smaller amount than you were hoping for once probate is complete. And even if you’re leaving behind a nice amount of money, you may not like the idea of your loved ones losing a chunk of it.
3. Probate isn’t private
One very surprising thing about probate is that it makes estate-related matters public. When a will goes through probate, its contents become accessible to anyone who wants to see that information.
If you’re someone who values privacy, you may find this to be a problem. Plus, the fact that probate isn’t private could expose your loved ones to unsavory people.
Let’s say you’re leaving behind a very large inheritance to your child, who happens to be single. Someone could look up that information and pretend to have a romantic interest in them for the purpose of getting their hands on that money. You might think these things only happen in the movies, but unfortunately, they can happen in real life, too.
You may want to avoid probate
Given the many problems with probate, it could be in your best interest to try to avoid it. A good way to do that is to use a revocable living trust to leave an inheritance for your loved ones instead of using a will for that purpose.
While wills generally have to go through the probate process, revocable living trusts do not. This means that not only can your personal affairs be kept private, but you can also avoid the expense of having to go through probate.
Plus, with a revocable living trust, your loved ones may be able to get access to their inheritance far more quickly. That could help alleviate a huge financial burden at a time when the people who miss you may be deep in the throes of grief.
At the Law Offices of James A. Miller, P.C., we understand the importance of using the right estate planning tools. We know how stressful probate can be, and we can suggest solutions that may help your loved ones avoid it, all the while supporting you in creating a comprehensive estate plan. Contact our Worcester estate planning lawyers today at (508) 799-8885 or reach out online to schedule a consultation and learn more about the different services we’re able to offer you and the people you care about the most.