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Probate 101: A Financial Advisor’s Guide

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When a relative dies, it’s always a distressful moment for the family. However, more problems arise when it comes to distributing the properties of the deceased among the beneficiaries. Sometimes, the process is flawless and straightforward when everyone agrees on how the properties should be distributed. However, there are cases wherein people contest the distribution of such properties. Such contests involve uphill legal battles between families and other beneficiaries. The cases are stressful, and, sometimes, people don’t get what they deserve. It’s such reasons why people are advised to get a probate litigation lawyer to help them compile evidence properly and pursue the case successfully. This legal course of analysis and transfer of the property to the beneficiaries is called probate. 

Understanding Probate

As earlier mentioned, probate is the legal and financial process that happens after someone dies. The process involves court appearances, paperwork, and, sometimes, disagreements between the beneficiaries. As expected, the deceased will have left a will behind on how they expect their properties to be shared. Different states will have different probate procedures, although common laws, like the ones listed below, apply almost everywhere. Each family going through the probate should also be aware of how it’s done. Here’s how one can go about such process:

If everything goes as planned and there’s no contention, the properties will be distributed, and the beneficiaries go home happy. Unfortunately, the probate process is usually not smooth as always. There are cases wherein people claim injustice in the distribution, and, therefore, challenge the will. Here are some of the things that can cause probate litigation:

Importance of Probates

Conducting probate has several advantages because, during a time of grief, it would be best if someone who’s not attached to the family takes control of the distribution of the property. A probate will be helpful in the following ways: 

With such benefits, you should consider going the probate way. You should note that probate is vital if there are uncertainties about the will. 

Is Probate Necessary

Some families will always opt for probate because of the reasons mentioned above. However, not all property inheritance will require probate. There are some exceptions, and also avoiding probate could have some benefits, too. Moreover, if the deceased had more debts, taxes, and other expenses than the properties they hold, none of the beneficiaries will inherit anything. Therefore, there won’t be a need to have a probate. 

Probates also include several legal fees because you may need to hire a lawyer, as well as cover court fees and administrative fees. This takes away the net inheritance of the beneficiaries from a financial aspect. Another case wherein there won’t be a need for probate is when the deceased was in joint ownership of properties, bank account, or any other asset at the time of death. The properties will be passed to the other owner if they provide the death certificate and identification proving joint ownership. This case also doesn’t require a probate. 

Finally, if there are no disputes and disagreements regarding the will, you can distribute the properties among the beneficiaries without probate. One of the benefits of avoiding probation is that you save money, hence, cutting down the debts and expenses that you have to pay from your inheritance. 

The Probate Process

Not all cases concerning wills and inheritance have to go through the probate process. Familiarizing yourself with the probate process will help you know what cases can take that route and what cases shouldn’t. There are some real benefits to choosing probate, especially when you have to protect assets during the inheritance time and when settling disagreements among those in contention. However, probate involves fees, and that eats into what you get as an inheritance. Avoiding probate could mean saving a lot of money as you avoid legal fees. But, closing down the assets and properties of the deceased could be a problem.

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