What is Probate Court and How to Avoid It

It’s hard enough losing someone you love, but the pain becomes even worse when you have to fight over his or her belongings in court. That is the inconvenient reality of what happens when someone passes away and you end up in probate court.

What is Probate Court?

Probate court is the legal process that determines the distribution of the property of a deceased person. The court will appoint someone to take control of the deceased’s assets, make sure all debts are paid, and then allocate the remaining property to the proper beneficiaries.

How It Works:

• If the person died without a will, probate law will distribute the assets to the next of kin. The spouse is usually entitled to a certain portion of the estate, then state probate laws break down the line of succession to determine who gets what.
• If the person died with a will, his or her estate will be distributed according to how it is set out in the will. However, should the will be contested, probate court will determine if, and to what extent, the will is valid.

Why You Should Avoid Probate Court:

• It takes a lot of time. You could be stuck dealing with the probate proceedings for several months to well over a year, with complex or contested estates taking even longer.
• It’s costly. You don’t walk in and out of probate court for free. Between court fees, attorney fees, and administrative fees, you could end up spending thousands of dollars.
• It’s public record. Anyone can go to the court and find out how much money was left after a person’s death and how much was owed. Talk about a lack of privacy for the deceased and heirs!

How to Avoid Probate Court:

Setting up a trust often allows your estate to be passed to the heirs without going through probate at all. But since trusts can involve of a lot of tax rules, it’s wise to have an estate planning professional help with the process.

Proper estate planning is the key to helping your heirs avoid any hassle with your estate after you pass. At American Investment Planners LLC, we make it a priority to help you prepare for the best financial future possible. From preserving your wealth to estate planning, we’re here to help with anything you may need. To schedule an appointment with one of our advisors, please call (516) 932-5130 or email info@americaninvestmentplanners.com.

*The estate planning information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Please consult legal or tax professionals for specific information regarding your individual situation.