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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