Probate is the term we use to describe the legal process of disposing of a deceased person’s assets through the court system under court supervision. Probate can occur with or without a will. When there is a will, probate is less complicated and – typically – involves less court supervision. That being said, probate can become a protracted and costly ordeal, even with a will. By steering clear of probate, you shield your loved ones from enduring this often complex legal process that can drag on unnecessarily.
Saves time & Money
If a married couple organizes their joint estate correctly, the surviving spouse can avoid probate altogether. This saves time and money for the surviving spouse. In Alabama, probate requires at least six months from the issuance of the letters of administration to the final settlement and closure of the probate process; usually, it takes much longer. If married couples plan properly, only one probate will need to occur – after the last spouse dies. Avoiding probate when the first spouse dies saves money too. The probate process typically incurs various fees, including court costs and attorneys’ fees, which diminish the value of the estate. Avoiding probate helps preserve more of your estate’s worth for your beneficiaries by eliminating or reducing these expenses, which can be substantial depending on the size of the estate.
Reduces the Burden on Your Beneficiaries
Most older adults leave their estate to their adult children. If your adult children live out of state, managing the probate of an estate is quite burdensome, even if the decedent had a will. Multiple trips will have to be made to Alabama to attend court hearings and to handle the sale and disposition of real and personal property. By placing your assets in a trust, your adult children can avoid the expense, burden, and inconvenience of having to run your estate through probate.
Privacy protection
Probate is a public process, which means personal and financial details become part of the public record. This exposure can compromise your family’s privacy and expose sensitive information to strangers. By avoiding probate, you keep sensitive information about your assets confidential within your family circle.
Flexibility in Property Ownership
If you own real property, e.g., a beach house, in another state, like Florida, your executor will not only have to open a probate in Alabama, but they will have to open a probate proceeding in that other state in order to transfer the property to your beneficiaries. By using a trust, you can gain the flexibility of owning land and homes in other states without adding to the burden of multiple probate proceedings.
Avoiding Family Disputes
Probate often sparks disputes among family members regarding inheritance, sometimes leading to long-lasting rifts. By using a trust to avoid probate, you can provide clear instructions to your trustee on asset distribution ahead of time, reducing misunderstandings, preventing conflicts, and preserving family harmony.
Avoiding probate offers a range of benefits, including time and cost savings, enhanced privacy, and more control over your estate’s distribution. It also plays a crucial role in minimizing potential family disagreements, allowing your wishes to be honored with clarity and respect.