Frequently Asked Questions
What is “Probate”?
Probate is the process by which the court system oversees the payments of the deceased’s debts and the distribution of the deceased’s assets.
How much does probate cost?
The average probate process will incur a probate cost of 4% to 10% of the value of the estate. The executor and probate attorney have minimum fees set by statute. Court costs and filing fees are several hundred dollars. Additionally, the executor and probate attorney may request additional fees for tasks related to the distribution of the estate.
How long does testamentary validation take?
It is becoming common for probate to last 1-2 years. During this time, assets are not freely accessible and beneficiaries often have to request special approval to obtain interim distributions.
Does joint ownership avoid probate ?
In reality, he usually just puts it off. With most jointly owned properties, when one owner dies, the entire property passes to the surviving owner without probate. When the surviving owner dies without adding a new co-owner, or if both co-owners die at the same time, the property must be probated through the probate process before it can be transferred to heirs. When you add a co-owner, he loses control. Also, there could be gift and/or tax issues, as well as difficulties refinancing or selling the property.
Revocable Trusts avoid testamentary validation
A Revocable Trust is simply a way of holding property titles. Assets placed in trust avoid the probate process. A Revocable Trust allows your trustee to manage your estate without the cost or delays of probate.
If I put my property in a Trust, do I lose control over it?
No. You will maintain all the rights and privileges to your property as you had before the Revocable Trust was established. You can transfer property into your trust or take it out of your trust at any time.
Can I change my Trust?
Yes, as long as the trust is a Revocable Trust, it can make changes unless restrictions are placed on making changes.
When I die, will my Trust become a public document?
No. A trust is a private document and does not become public upon your death. On the other hand, a will becomes a public document that allows the world to know about all of your assets, and how they were distributed upon your death.
What happens if I become mentally incapacitated?
At the time you establish your trust, you will select your trust administrator(s) and they will manage your trust assets for you if you become incapacitated. If you do not have a Trust or Power of Attorney, a conservator must be appointed for you. This is a legal process and therefore can be expensive, time-consuming and stressful.
Do I also need a Will?
Yes. Additionally, you must prepare a Will that is designed to work in conjunction with your Revocable Trust. Any assets that are not transferred into your trust will be collected and transferred to your trust after your death.
What happens if I die without a Will or Trust?
This is called dying “intestate.” Your entire estate is subject to probate, and the state, through the probate code, decides how your assets will be distributed. The probate code defines a formula for dividing your property that, in many cases, may not be what you would have wanted.
Why should you have a Durable Power of Attorney?
There are two Durable Powers of Attorney, one for medical decisions and the other for property management or financial decisions. By executing your Durable Powers of Attorney, you will have the opportunity to choose those people you want to take care of you and make financial decisions for you when you cannot make them yourself. You can specify your wishes for life support and other treatments, as well as make organ donations and direct the disposition of your remains. You will also avoid the difficulties of going to court to determine whether or not you have the capacity to make health and financial decisions. This can be an expensive and uncomfortable procedure for your children or loved ones.
Who qualifies for a Trust?
If you have an estate or personal property worth more than $150,000, you need a trust. A trust can save you the costs and time required by the probate process.
Will a lawyer prepare my Trust?
Absolutely. The attorneys at BHR Law Group are experienced in all estate planning matters. They will meet with you to discuss your estate planning goals and prepare documents including your Revocable Trust, a Will, Durable Powers of Attorney for financial decisions and medical decisions.
