Justin, I’ve heard probate court can be a hassle, but isn’t it just part of the process after someone dies? Why should I avoid it? – Mark
Mark, You’re right that probate is often seen as a normal step after someone’s death, but avoiding it can save your family time, money, and stress. Here’s why staying out of probate court is a smart goal:
- Probate can be expensive. Filing fees, attorney fees, executor fees, and other administrative costs can eat into your estate. In Arkansas, these costs are typically a percentage of the estate’s value, meaning the more you leave behind, the more probate will cost your family.
- Probate is slow. Even a simple estate can take nine months to a year to settle, and more complicated estates may drag on even longer. During this time, your family may have limited access to your assets, creating financial strain.
- Probate is a public process. Details about your estate, including its value and how it’s distributed, become part of the public record. For families who value privacy, avoiding probate keeps these matters confidential.
Avoiding probate doesn’t mean avoiding planning—it means planning smarter. Here are a few tools you can use:
- Revocable Living Trust: By transferring your assets into a trust, you can keep them out of probate. Upon your death, your trustee distributes your assets according to your instructions without court involvement.
- Beneficiary Designations: Assets like life insurance, retirement accounts, and even bank accounts can bypass probate if you name beneficiaries.
- Beneficiary Deeds: For real estate, a beneficiary deed ensures your property passes directly to your heirs without probate.
- Joint Ownership with Rights of Survivorship: Certain accounts or properties can be structured so they pass automatically to the surviving owner.
Mark, avoiding probate court is one of the best ways to protect your family from unnecessary delays, costs, and stress after you’re gone. By putting the right plan in place, you can ensure your assets pass smoothly to your loved ones.
If you’d like to learn more about these strategies and see how they apply to your situation, visit our website, ElrodFirm.com, or call to schedule a no-charge strategy session. We’d love to help you plan for peace of mind.