Each state’s laws regarding probate are different. However, most would agree that it is generally best to avoid probate. Probate is a court process that occurs when someone passes away. It changes ownership of assets held by the now deceased person to a designated person. The probate court is responsible for making sure that necessary tasks are completed. The court will make sure that creditors are paid, assets are appraised, title changed and the asset passed along to the beneficiary.
The two major reasons to avoid probate are that it is costly (in California between 3-5% of the entire value of estate) and time consuming (approximately 18 months). In California attorneys fees are set by statute and thus not negotiable.
So, how do you avoid probate? Some believe that if the decedent had a will, then there is no need for probate. Not true. Generally, you can avoid probate by having a Trust. In California, if the decedent’s estate is worth less than $150,000 probate is not necessary. Other states may have different limits.
As our parents’ advocates, we must make sure that they have a trust if their estate is valued at more than $150,000, depending upon the state’s limit. Estate planning lawyers specialize in wills and trusts and can assist you and your parent(s) with preparation of a trust. The best way to select a lawyer is by referral. If you have friends who have used an estate lawyer they liked, that would be one way to select a lawyer. If not, you can check with your state’s Bar for a referral. I suggest you interview three lawyers to determine who you believe would best meet your needs. For more information, please visit www.sandwichedmatriarchandmoney.com/mjk and check out the blog on Closing an Estate.