Most likely, you already know how your estate will be shared out and who will get what once you are gone. You probably even have everything in a will, tucked somewhere safely. However, are you aware of the process everything will have to go through for your beneficiaries to receive their share of the estate?
For your will to be executed, it has to go through probate. This is the court process of verifying the will and giving the executor the go-ahead in administering your estate. Here are three reasons you should consider avoiding the probate process:
1. Cost
The probate process can be a costly affair. Your estate may lose a tidy sum on legal and probate fees which would have otherwise gone to your beneficiaries. These fees depend on the size and complexity of the estate, and if you have a large estate, you are looking at considerable sums.
2. Privacy
Probate proceedings are public records accessible to third parties unless the court seals them. You might not want everyone knowing everything about your finances and how you have distributed your estate since it might bring unnecessary attention.
3. Time
Another reason to avoid probate is the time it may take to conclude. Since it is a court process, things take time, sometimes months. Your beneficiaries will have to wait to the end before assuming control of their share of the estate.
How to go about it
There are several ways in which you can avoid probate. For instance, you can set up a revocable trust or have joint ownership of assets. However, to settle on the best option, you need to have an in-depth knowledge of the options at your disposal and make sure they align with what you have in mind regarding your estate.
