Estate Planning 101 – Avoid Probate?

               Whenever someone talks about estate planning, there will inevitably be a warning to “avoid probate.” While there are circumstances where probate should be avoided, in most cases, “probate” is actually a simple, straightforward process.

               What are some circumstances where it is a good idea to avoid probate? The first circumstance is for estates that are big enough to be subject to the Federal Estate Tax. The exact size changes from year to year. In 2020, estates under $11 million in gross assets are generally exempt from estate taxes.

               The second reason to avoid probate is to avoid a fight over inheritance. If the heirs of your estate can’t agree on who should be an heir, or who deserves to inherit from your estate, it may be worth considering ways to avoid probate and circumvent costly litigation.

               There are other, less common, reasons to avoid probate. But for the average person, probating an estate with a properly drafted will is a straightforward process. Your attorney will file an application with the Original Will, publish notice for any potential creditors, and then request a hearing. At the hearing, the judge will review the will, and sign an order appointing the chosen executor. You will then have to prepare and file an inventory of the assets in the estate and distribute the assets according to the instruction in the will.

               There are certainly many ways that this process can become more complicated, but even so, probating a proper will is often the best way to handle an individual’s estate.