Understanding the Legal Process of Probate

Probate is a complex legal process that involves the distribution of a deceased person's estate to their beneficiaries. Typically, there is an existing will which specifies how the estate should be administered. A surrogate court will make a decision on the validity of the will. The instructions of the deceased will be examined during this process. And an appointed executor of the estate will act as the personal representative of the estate and will hear the interests of heirs and other parties that have any claims against the estate.

During this legal process, the deceased person's property is retitled out of their name and transferred to their beneficiary. This legal proceeding can last for several weeks or several months depending on whether or not their are any objections to the administration of the estate. Before any disbursements can be made, all creditors need to be notified and legal notices have to be published.

It is the responsibility of the trustee to settle any unpaid debts by distributing the descendants assets. In many cases, a petition to appoint a personal representative may need to be filed and Letters of Administration obtained. If there are any pending lawsuits involving the estate, these will have to be resolved before the administration of the estate. This is why this process could take many years to resolve.

If there are any real estate assets, they may need to be sold in order to pay off debts or to settle a law suit. Any estate taxes must be also be taken care of if applicable. It is important to have a lawyer that specializes in these proceedings handle the court issues regarding the estate. This will make the process go much faster and smoother. There are certain legal steps that must be followed in a timely manner.

When a probate case is opened with the court, the executor takes an account of the decedent's property and will be responsible for paying any debts. After the debts have been paid, all taxes must be paid as well, including the estate tax. After all of the applicable taxes have been paid, the remaining property can be administered to the beneficiaries. This will be as instructed by the decedent in the will.

If there are any parties that do not agree with the distribution of assets, the may contest the administration of the estate. This contest may be based on several factors that must be addressed in court. In such an event, the personal representative must abide by the fiduciary duties of the estate and hold the assets in an interest bearing account until a settlement or decision is reached.

If at all possible, it is best to avoid probate. This legal process can last from a few months to several years. It can mount up in legal costs and delay beneficiaries from receiving their monetary administration of the estate. There are many ways to avoid this process. One popular way to to have a Living trust. The original owner of the trust can transfer their assets to a Trust account which the owner controls. When the owner of the trust dies, the listed beneficiaries in the trust will then have ownership of the property of the trust. A living trust protects the deceased assets and the heirs from a public probate process.

Tips in Making a Family Tree for Your Estate Plan   Retirement Planning: It's About More Than Just Finances   Preparing and Writing Your Own Living Will   Planning For Your Personal Effects   How to Include Your Pets in Your Estate Plan   

A Guide To Understanding Estate Planning Documents

When it comes time to consider estate planning, many people can procrastinate without understanding the consequences of their delay. No one is truly comfortable thinking about what happens in the case of injury, disability, or even death, especially if young children are involved. However, one of the best ways to achieve peace of mind is to have a complete estate plan in place to make sure your family is taken care of when the time comes.

There are five primary documents when it comes to estate planning, ranging from a Will to a Power of Attorney. Let's take a moment to look at these five documents that help us make sure our families are taken care of. Laws can vary by state, so it's important to have each document drawn up by a local attorney who's familiar with each state's regulations and guidelines.

Will

The Will is what many people think in terms of complete estate planning. This document primarily addresses three important questions, but only comes into effect upon one's death. First, it designates who controls the administration of one's estate after someone passes away. Second, it establishes who receives the assets. Third, it designates legal guardians and conservators to handle the medical and financial decisions if there are any surviving minors. This document is vital in securing the foundation of your final matters if you do not have a Revocable Living Trust.

Power of Attorney: Medical and Financial

There are two main types of power of attorney documents everybody needs:  a Financial Power of Attorney and a Medical Power of Attorney. These two documents are only effective while one is alive. They grant a person control of financial and medical affairs in the case of disability, a coma, or any circumstance that would prevent you from making your own decisions. Each document helps prevent the expense of a court proceeding to determine who is allowed to manage your financial and medical decisions when you are unable to do so. 

Living Will

The Living Will, also known as an advanced medical directive, is used to officially state, in advance, whether one wants to refuse or terminate the use of artificial life support should the situation arise. This document also allows an individual to state in advance whether he or she should receive food and water in the event the Living Will is in effect. By establishing your desires in advance, it helps remove such burden from your family's shoulders.

Living Trust

A Living Trust, also known as a revocable trust or revocable living trust, is an alternative to the standard Will. It is a tremendously flexible document that can provide for the management of one's assets while alive and upon his or her passing. This method of estate planning enables exceptional control over one's assets. If drafted properly, it limits or eliminates certain taxes and offers a tremendous degree of asset protection for one's heirs should they ever get divorced or have other creditor problems. 

These five documents cover several of life's circumstances and should be a part of everybody's base estate plan. 

Tips in Making a Family Tree for Your Estate Plan   Retirement Planning: It's About More Than Just Finances   Preparing and Writing Your Own Living Will   How to Include Your Pets in Your Estate Plan