Probate Planning2. The dead cannot cry out for justice.
It is a duty of the living to do so for them.
Lois McMaster Bujold
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3. Definition: Probate
• Probate is a court-supervised process to
transfer property to your beneficiaries
upon your death as directed by your will.
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4. Benefits of Probate
• Provides court supervision to ensure your
property is accounted for and distributed
as described in your will.
• Probate makes it difficult for unsecured
creditors or others to claim any interest in
your estate, once the creditors’ claim
period expires.
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5. 2 Probate Activities
1. Probating the Will:
• Establishes the validity of the will and
appoints a personal representative.
2. Administering the Estate:
• Implements the provisions of the will under
the jurisdiction of the probate court.
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6. Probate Court
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Identifies property
Pays debts
Locates your heirs
Distributes property to those heirs
Handles mental incapacity determinations
Guardianship
Conservatorships of adults
May appoint a conservator for an
incapacitated person
• Administers that person’s estate for several
years more.
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7. Probate assets do not become the property
of the beneficiaries until the probate process
is complete and the court approves the final
distribution.
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8. How-to Avoid Probate
• Living trust
• create and fund a revocable living trust.
• Shift property ownership
• Real estate, bank accounts, and securities owned as joint
tenancy with right of survivorship are not subject to
probate when one owner dies and there is a surviving
owner.
• Trust or account
• Bank, brokerage, and mutual fund accounts may include a
pay-on-death or transfer-on-death designation.
• Hire an attorney
• An attorney and/or accountant usually must be hired to
help administer your trust or other non-probate estate and
to prepare the estate tax return.
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9. Probate and Administration Fees
• Fees are based on property, which is
subject to probate
• Fees do not include life insurance,
retirement accounts, or joint tenancy
property
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10. 7 Steps to the Probate Process
• Executor files a probate petition, along with a copy of
the will.
• Copies of the petition are sent out and published
• 4 to 6 weeks later the court determines who shall be
named as executor or administrator of the estate.
• Anyone who believes the deceased owed them money
must file a creditor claim.
• Executor or administrator marshals the assets, and
evaluates the creditors’ claims.
• Executor or administrator proposes a distribution plan
to the court.
• Once the court approves it, the estate is distributed
and probate is closed.
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11. What to Do Next
• Arrange your financial affairs to reduce
your family’s estate tax liability
• Minimize the impact of probate on the
administration of your estate after your
death.
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12. There’s MORE!
1.
2.
Get a Full Probate Checklist
Glossary of Probate Terms
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Sources:
http://www.shepardestateplanning.com
http://www.ycollaborative.com/blog/
http://www.frenchfunerals.com
http://www.law.cornell.edu/wex/table_probate
http://www.law.cornell.edu/wex/table_probate
www.abanet.org
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