Probate Avoidance

/Probate Avoidance
Probate Avoidance2018-08-22T17:53:59+00:00

Probate Avoidance

Where do your assets go when you die? If you want to leave your heirs well-protected in the event of your death, it’s a question you need to ask. Many people will obtain a will that designates how their estate will be distributed. However, even if you have a will, a probate case will still see that your estate is distributed fairly and compliant with probate law. Additionally, if you don’t have a will, or there is any kind of dispute, mediation must occur to settle the dispute. This process is called probate, and it’s a process that WRS Law excels at.

A personal representative will be chosen to act as executor of your estate – your will typically names this representative, who will work to assemble all assets of your estate. This person can be a spouse, surviving descendent or even a creditor. If none of these possibilities will serve as a representative, a government administrator will oversee your estate. After your assets have been assembled and cataloged, your personal representative will settle remaining debts owed to creditors. After your debts have been fulfilled, the amount left in your estate will be distributed to your designee(s) following how it is outlined in your will.

Probate can draw out the disbursement of your assets to your heirs, prolonging the process to indemnify them financially. In the event of your death, you want to ensure that your heirs receive your estate they’re entitled to quickly and painlessly. Probate can be avoided by setting up a trust in your estate’s name. Essentially, this trust perpetuates after your death. It is treated as a separate legal entity from you, although it contains your assets. As such, after your death it is still considered an entity in good standing, there is no need to probate your assets. Trusts have an unfair reputation as being necessary for only the wealthy. This is untrue – anyone who holds assets should seriously consider setting up a trust for more than a few reasons:

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  • Financially , a better option:

    The legal fees and court costs in probate cases can accumulate over time. The more complicated the case, the more the fees, and ultimately, the less that your heirs are left with. A trust can greatly simplify an estate transfer, often times even eliminating the need for lawyers.

  • Protection from overzealous credit situations:

    Your personal representative must notify all creditors of your passing, after which, those creditors have just 4 months to make a claim against your estate. If any creditor does not make a claim in that time, their claim is denied. Additionally, creditors are not eligible to make claims against assets held for your beneficiaries.

  • Limit tax liability:

    a trust can help shield your estate from a high taxation rate in the event of your death. You worked hard to accumulate the assets you have. Make sure you are able to pass on as much of that estate to your heirs by creating a trust. Even if you have a will, you are still vulnerable to probate. In other words, the only way to totally avoid a probate case over your estate is to create a trust. Protect your assets by setting up an appointment with our probate law experts at WRS Law.

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