Probate is a court-supervised process where a decedent’s will is
validated, an executor or personal representative is appointed, and the
decedent’s affairs are wrapped up – all under the watchful
eyes of the probate court.
Surprisingly, individuals with large and small estates die without a will.
Dying without a will does not make financial sense, but many people avoid
estate planning because they are uncomfortable contemplating their own
mortality, or because they are young and believe they have “plenty
of time” before they need to think about estate planning.
Probate for Intestate Estates
When a person dies without a will, it is called dying intestate. If the
decedent owned real estate, such as a home or if they have any measureable
assets, their estate will still go through probate.
Instead of the decedent having a will where he or she named an executor,
the court will appoint a personal representative, who will be in charge
of paying off the decedent’s debts, paying taxes and distributing
what’s left to the decedent’s heirs according to state law.
Personal representatives carry out the same duties as executors who are
named in a will, only they’re appointed by the probate court instead
of the decedent. Some states call executors “personal representatives.”
Estate Planning Gives You Control
If you have a substantial estate, you have two options: 1) you can forgo
estate planning and have your state’s intestate succession laws
determine how your estate will be distributed (which will be overseen
by the probate court) or 2) you can meet with an estate planning attorney
and decide how, when, and to whom your estate will be distributed.
If you want to avoid the costs of probate or at the very least minimize
them, your attorney can help you arrange your assets so many of them pass
outside of probate. Such tools include beneficiary designations, trusts,
and owning property in joint tenancy.
When you create an estate plan, you are in control; you decide how to arrange
your property so it is subject to probate or so it passes outside of it.
If you so choose, strategies can be employed to reduce the costs of probate
while ensuring that heirs receive their inheritance faster. You will need
legal counsel to help you accomplish this.
Learn more about tailoring an estate plan that suits you by contacting
an estate planning attorney.