If you have started thinking about estate planning, you are already taking positive steps to protecting your family’s future after you are gone. Estate planning will help ensure your family is provided for if something should happen to you.
However, estate planning can be complicated and there are many different aspects you need to consider when creating a solid plan. Avoiding probate is one of a few elements you should consider because it can create unnecessary problems for your loved ones.
What is probate?
Probate is a judicial, legal process. It is an official way of transferring assets to beneficiaries and heirs. During the process, the court will supervise the sorting of your estate. Typical probate can take anywhere from nine months to two years.
How can it affect your family?
The two largest negative aspects of probate are time and money. Probate can take a lot of time and eat up considerable of your family’s resources. As stated above, it can take up to two years for your family to receive their inheritance. There are approximately 17 steps involved between filing and distribution of assets.
There are also a variety of fees involved including court costs and executor fees that can drain your family’s resources and lessen the impact of your will.
How to avoid probate?
Creating a trust is one of the most straightforward ways to avoid probate. Some of your accounts will automatically avoid probate, such as retirement accounts and life insurance.
Avoiding probate can help your loved ones through an already difficult process and is a good thing to consider when estate planning.