The Cons of Probate in California
Delays in Asset Distribution: Probate can be time-consuming, causing delays in asset distribution, which may not be ideal for heirs in need of quick access to funds. Complex Court Procedures: The probate process can be intricate, potentially taking months or even years to complete.
The challenges with probate are (1) there are often fees associated with the process that scale with the size of the estate, (2) some states have lower thresholds for inheritance taxes than the federal government, (3) the time delays associated with probate can create chaos for businesses, etc.
Avoiding probate is often useful. It can save your family money, afford privacy, and may prevent unwanted delays later on.
First and foremost, there are a number of asset types that typically do not pass through probate. This includes life insurance policies, bank accounts, and investment or retirement accounts that require you to name a beneficiary.
Personal possessions should not be distributed before probate is completed, as they are part of the estate that must be inventoried and appraised. Distributing items prematurely could lead to legal disputes, especially if they are intended for specific beneficiaries.
Establish a living trust: This is a common way for people with high-value estates to avoid probate. With a living trust, the person writing the trust decides which assets to put into the trust and who will act as trustee.
The main downsides to probate includes the following: Unless the estate qualifies for a simplified procedure, starting and completing a probate can take more than one year. The process can be costly. The entire probate proceeding is public.
Complex Estates Can Delay the Probate Process
Unusual assets can also present complications. Additionally, estate debts also need to be resolved, including any outstanding loans, mortgages, or taxes. All this information is necessary for an accurate estate inventory and distribution of assets.
If a person distributes some assets to a charity or organization, the court needs to inspect the will through probate. All of these things can force the probate process, even if a person creates an estate plan that specifically avoids probate.
The need for probate depends on the size of the estate at death, state laws, and whether someone is willing to act as executor of the estate. Generally, the probate process begins after the filing of the last will and testament to: Distribute assets. Pay valid debts.
However, the key difference is that: A Will is a legal document that you write and keep updated during your lifetime. It allows you to record your wishes. Probate is a legal process that happens after you die.
Probate is a court-supervised proceeding that authenticates your Will (if you have one) and approves your named Executor so he or she can distribute your property and belongings. During the probate process, all your assets must be located and assessed for total value.
If the will is contested, litigation costs can be insurmountable. By avoiding probate, you can also keep someone from contesting your wishes altogether. Finally, one of the biggest reasons individuals avoid probate is because they want their financial affairs kept private.
That being said, it is never a good idea to delay the inevitable. California Probate Code section 8001 specifies that the executor has 30 days after the decedent's date of death and after learning they are the nominated executor to petition the court for administration of the estate.
One common method is to create a revocable trust. A revocable trust allows you to maintain control of your property during your life, and decide how the property is distributed after death, without needing to go through probate court.
The probate procedure is expensive, drawn-out, and intrusive.
One option is to leave your house to someone in your will. A will names the beneficiary for each item of property and transfers ownership after the probate process. A will can be easy to prepare.
There is no set time for when a house needs to be cleared. It is the responsibility of the deceased's family to ensure all items are removed from the property. Once this is done, the house can be sold, with the proceeds then being distributed to all designated heirs.
An executor can also be someone you've named as a beneficiary in your will. The role of an executor is a serious one which carries a lot of responsibility. When choosing your executor or executors you need to bear this in mind. It should be someone you trust to carry out this work.
Yes, that is fraud. Someone should file a probate case on the deceased person.
Yes, But it's Time to Start Making Other Arrangements
However, if one beneficiary lives in the property to the exclusion of others who also inherit the property, litigation may result between them. In California, any property owned by an individual is subject to probate, including real estate.
A: Property that cannot be held in a trust includes Social Security benefits, health savings and medical savings accounts, and cash. Other types of property that should not go into a trust are individual retirement accounts or 401(k)s, life insurance policies, certain types of bank accounts, and motor vehicles.
Safekeeping by the Testator. While it's common for the executor to hold the original will, some individuals prefer to keep the original will in a safe place themselves. This can be a safe deposit box, a fireproof safe at home, or with an attorney.