Probate costs should raise concerns
They believe that the executor that you name in the document will follow your instructions and distribute assets to beneficiaries. They are under the impression that the executor that you name in the document will follow your instructions and distribute assets to the beneficiaries.
This seems like a very simple and straightforward process that is between the decedent and the executor. Why would there be expenses to consider? In reality, this is an oversimplification that doesn’t consider the impact of probate costs, and we will look at the matter in this post.
Court Supervision
When people pass away, they typically have debts, and creditors have a right to be paid. If someone believes that the will is invalid for some reason, they should be able to make a claim. What if an executor is unfairly favoring certain people? The probate process is in place for these reasons, as well as others.
Under Oklahoma laws, a will must be admitted to the probate and the court supervises the estate’s administration. Anyone that wants to contest the will can come forward during probate, and creditors are notified so final debts can be paid.
Expenses
This process is not free by any stretch of the imagination. The executor can be reimbursed for the filing fee charged by the court. These legal costs will be multiplied by complications and a contested will. There may be liquidation and appraisal fees as well, since the property must be prepared to be distributed to the heirs. A study that was conducted a number of years ago determined that on average, between three percent and seven percent of the value of an estate is consumed during probate.
Other Drawbacks
The cost factor is not the only probate pitfall. Privacy is not maintained when a will is used to express your final wishes. The time involved is also a major negative. No inheritances are distributed while the estate is being probated by the court; it usually takes eight or nine months at minimum.
Probate Alternative
You could use a revocable living trust if you want to steer clear of these difficulties. You would be the trustee while you are still alive and have full control over the assets you transfer to the living trust. You can actually rescind or dissolve the trust if you choose to do so, and you would reassume direct personal possession of the property.
There are no risks, and there are considerable rewards. You can name a successor trustee to administer the trust upon your death when you create the trust. The administration process would be simplified because the probate court wouldn’t be involved. Check out Our Reviews!
If your interested in hearing from people who have experienced our firm first-hand, visit our testimonials page. Call our Oklahoma City estate-planning office at 405-843-6100 if you need guidance on your own situation. You can also use our contact form to send us a message. You can also use our contact form.
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