When it comes to planning for your future, part of this plan should include an estate plan. This includes official documents like a will, powers of attorney and more.
However, as you create your estate plan, you should keep in mind methods to reduce the potential of probate. When you reduce the potential of probate after you die, you can also eliminate additional costs, inheritance delays, and the loss of your and your family’s privacy.
Here’s why most people aim to eliminate the probate process:
Probate causes significant delays
Even if you have a situation where no one is contesting probate, it can still take more than a year to complete. If you don’t take steps to plan properly now, then the delays may not be able to be avoided. That can put your family in an unfortunate financial position.
Additional costs of probate
The cost of going through probate can be expensive. Even basic cases with minimal assets can cost up to 5% of the estate’s total value. This is money and assets that will not go to your family or beneficiaries, but to the state.
The loss of privacy
When your estate goes through probate, anyone can access information about your will through the probate court. This means that relatives and creditors may access your probate records and challenge your will.
Protecting your rights and plans
If you want to take steps to protect your rights and ensure that your estate is distributed as you wish after you pass away, then having a well-laid-out estate plan is recommended.