The Pandemic and Avoiding Probate.

What is probate?

Probate is the process through which the legal title to property is transferred from the person who dies to their beneficiaries. If the person dies with a Will in place, the Probate Court determines if the Will is valid, hears objections to the Will, orders what creditors are to be paid, and supervises the process to make sure that the property is distributed by the executor according to the terms of the Will. This all seems to make sense, but there are very good reasons to want to avoid the probate process.

Why avoid probate?

If your family might have an immediate need for cash, it can take weeks or even months to access a deceased person's assets. Heirs can be stuck paying for everything from the funeral to utilities while your estate is probated. Your family might not even be able to access the cash in your bank accounts during probate. They'll also have to pay property insurance, taxes and even storage fees until probate is officially opened, and that can't happen without a court order. If you have a spouse who doesn't work and doesn't have access to their own funds, they can be left scrambling to pay for even the most basic living expenses.

Probate costs money. There are court filing fees and probate fees. If your estate requires the assistance of an attorney, that’s an additional cost. Many states base attorneys' fees on a percentage of the estate. Even a small estate made up of a home, a car, and some bank or investment accounts, can result in legal fees in the tens of thousands of dollars. All these fees are payable out of the estate, leaving less money for your heirs.

Probate is also a public process. If you and your family are private people, you should be aware that in probate a deceased person's assets, liabilities, beneficiaries, and personal representatives are a matter of public record.

Now many states are shutting down non-emergency court proceedings. This means that only criminal matters involving incarceration, matters involving protective orders, child support and endangerment, and other similar legal proceedings are moving forward. All other types of cases are on hold at the time this blog is being published. You don’t want your estate stuck in probate. Luckily, there are ways to avoid probate.

Contact an attorney working in the field of Estate Planning. They will guide you through the process that can save you a tremendous amount of time, money, and aggravation.