“Probate” is a term that is mentioned quite a bit in the estate planning world.  We’re always talking about the process of probate, the cost of probate, how to proceed with probate or how to avoid it.  With all this talk of probate, a definition and description of the process seems in order.

Probate is the process in which the court determines the legal property of a person who has died, and decides to whom those assets will be distributed. It sounds like it should be simple, but even in the best of circumstances there are procedures that must be followed to the letter, and the actual process (depending on the size of the estate and the laws of the state in which the property is being probated) can take anywhere from 6 months to a few years.

You may be asking why probate takes so long, especially if the deceased person has left a will making their wishes clear.  A good will can certainly make the process easier, but even with a will, there are certain steps that must be followed to complete the probate process, including the appointment of an executor or personal representative, verification of the will, taking an inventory of assets belonging to the deceased, giving notice to creditors and paying valid claims against the estate, preparing and paying taxes, notifying beneficiaries, and eventually distributing the assets to the beneficiaries or heirs.  Whew!

If you think that just reading the above paragraph takes your breath away, imagine the confusion of having to actually go through all of those steps—and possibly more!

Not every estate will have to go through probate, but one way to absolutely avoid it is to hold your assets in a revocable living trust.  A living trust is an entity that continues even after the grantor passes away, which means that the “owner” of the assets still exists, and probate is thereby avoided.

If you would like to know more about probate, or protecting your assets with a revocable living trust contact our office today.