Jun 15, 2022
Is Probate a difficult and expensive process? Is there any way to avoid it altogether? If you’re diving into estate planning and have questions about Probate, this episode is for you! I’m joined by special guest Judge Edward C. Burt Jr. (aka Ned) who has served as a Probate Judge for the last 10 years. We’ll discuss common misconceptions about Probate and strategies to make it as simple as possible.
You will want to hear this episode if you are interested in...
- Getting to know Ned and his Probate background [1:06]
- Can I avoid Probate? [3:40]
- Should I have a will? [7:17]
- The logistics of sending your estate through Probate [9:39]
A common misconception
Most people have zero idea what Probate court is or how to navigate the process because it’s usually an extremely sad circumstance that brings families to the court. Probate court is often viewed as the place where families go to settle a loved one’s estate when they pass away as well as any outstanding debts. However, there are many other matters handled by the Probate court like adoptions, name changes, conservatorships, and issues of guardianship. And while many people try to believe Probate court can be avoided, that is rarely the case.
Couples often have established through a deed that the ownership of jointly owned property will transfer to the surviving spouse in the event of the other’s death. This is known as the rights of survivorship. One of the biggest misunderstandings about Probate is that people assume just because a joint asset like real estate is in survivorship does not mean that it doesn’t have to be Probated. There may be inchoate taxes due to the state for the spouse that passes away. Though inchoate taxes are unlikely, the deed itself needs to be Probated to receive a certificate of no tax due which is required to sell the property down the road. Not doing so could hold up the closing process or cause the sale to fail entirely.
Where there’s a will, there’s a way
Having a professionally prepared last will and testament is the number one way to prepare you for the Probate process. A “simple will” should suffice for young married couples, but as you get older or if there are significant assets to manage, a more complex legal document may be required. While a will doesn’t help you avoid Probate, it does provide the instructions for the distribution of assets during the administration of Probate making the process go smoothly. For more information on the Probate process, listen to this episode and tune in next week for Part 2!