As you look ahead into your estate planning it is helpful to understand the probate process and what and how you can pass on assets to your loved ones. This preparation is much like understanding the rules of a game, or any other undertaking, and saves you and those close to you stress and worry. Probate is a court supervised proceeding that occurs after a person has died. The decedent’s will is verified; their assets (that are still in their name) are appraised; and debts and estate taxes are paid.
Probate can be either formal or informal. Informal probate is the most common and is administered without Court hearings or involvement.
Assets that go through Probate are:
1. Real property and land held in the decedent’s name only.
2. Personal property such as furniture, heirlooms and cars would go through
Probate. Transferring the title to an automobile can be done if there is a
surviving spouse and the transaction then avoids probate. If there is no surviving spouse the car would be added to the list of things going through Probate.
3. Bank accounts held in the decedent’s name only.
4. Life insurance policies and brokerage accounts that list the decedent’s
name only.
Assets that do not go through Probate are:
1. Assets held in a trust, such as property that is being held in a revocable or
irrevocable trust.
2. Property that is held jointly with others.
3. Accounts that are held jointly.
4. Assets that have a pay on death or transfer on death designation.
5. Assets that have a beneficiary designation.
Probate can be a long and costly process. It can take as long as 12 to 18 months to complete. It can involve some significant costs including executor’s fees, accounting fees, court costs, attorney’s fees and appraisal costs.
If you need help putting together an estate plan, contact John Tramontozzi at Tramontozzi Law Offices (781) 665-0099. John has extensive experience with estate planning and the probate process. He can help you put an estate plan in place to protect your assets or navigate the Probate process for a loved one.
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