If you have recently started to research estate planning, you may have started to notice that a huge emphasis is placed on attempting to avoid probate. Probate is a court-supervised process that essentially ensures that all assets within an estate are distributed correctly. So, you would be right to question why estate planners want to avoid probate.
The following are some of the key reasons why many estate planners invest time in creating strategic ways to avoid probate, such as creating trusts.
Probate takes a long time
While probate is generally a trusted process, it is also a lengthy one. Therefore, the beneficiaries of an estate that goes entirely through the probate process will have to wait a long time before gaining access to their inheritance.
Probate costs a significant amount of money
Probate is a costly process because of the number of administrative activities that it involves. This means that a significant portion of the inheritance that beneficiaries would otherwise be entitled to must be used to pay the probate fees. Generally speaking, the larger the estate, the more expensive the probate process.
All activities relating to the probate process will be public records
If you consider yourself a private person, you may not want the details of your estate to become public records. This is another reason why you may want to avoid probate.
There are many ways that probate can be avoided, but one of the most popular options is through the creation of trusts. Creating trusts can give you peace of mind by ensuring that your assets will be transferred to the intended beneficiaries.
