I’m sure many of us can agree that when we pass away, we’d like to give our belongings to those closest to us. The loss of a loved one is never easy, and the last thing we would want is for everyone to worry about what will happen to our assets. So what is probate?

It would be a shame to have all of our hard-earned money and savings go to the government in probate fees, which is what we’re going to cover in this blog post. 

What Is Probate?

Probate is a legal procedure where a court decides how a person’s property will be distributed after they pass away. In other words, it is the process of giving property to a beneficiary or an heir.

During probate, the court appoints an attorney to ensure that all debts and taxes on the property are paid. They also make sure that the property is divided into the appropriate parties. 

This process varies from state to state because of different property laws. However, usually the assets start with a spouse and are then divided between other family members.

Reasons to Avoid Probate

There are many reasons why people may want to avoid probate. Here are just a few:

1. It Is Expensive

The process of probate isn’t cheap. There are many fees that have to be paid, which include attorney’s fees and appraiser’s fees. According to Investopia, probate can easily cost from 3% to 7% or more of the total estate value.

2. It Is a Slow Process

There are many hoops to jump through when dealing with probate. The amount of time that it takes to complete this process varies depending on each situation. However, it typically averages from around six months to over a year.

3. It Is Public

Many people may not know this, but everything from the probate court goes into public record. This means that anyone has access to detailed information such as property, finances, and names of family members.

4. It Can Cause Disputes

Even if the deceased member has a will, oftentimes, it can be difficult for a house’s value to be spread equally amongst heirs. This is especially true if there are several people in the will. However, if there isn’t a will, you can imagine how this could cause even more disputes amongst living relatives.

How Can You Avoid Probate?

If the above situations sound too stressful, you may want to avoid probate altogether. Here are a few ways to do so.

1. Make a Will

The purpose of a will is to distribute your assets upon death. Anyone can draft this document. However, we advise hiring an attorney to help. Although making a will doesn’t avoid probate, it is an important way to help minimize the cost of probate.

2. Have a Living Trust

Unlike a will, a living trust places your property and all assets to a trustee. This enables you to avoid probate completely because everything is already distributed to the trust.

Although the attorney’s fees for setting up a trust are more than drafting a will, a trust can be less than the cost of probate in the long-run.

3. Joint Ownership of Property

Any property can be held jointly, such as a car, home, or bank account. This means that if the owner dies, the title of that property will automatically be passed to the surviving owner.

Although it makes the process more simple, you must remember that a joint owner has certain rights in the property. Like, they have the ability to withdraw money from a bank account at any given time.

4. Give Away Assets

Another way to avoid probate is to give away some of your assets as gifts while you are still alive. For example, you may choose to give a plot of land to your child. However, make sure that you clearly state this in writing so that there is written proof in your overall estate plan.

5. Have “Payable-on-Death” Accounts

For bank and other financial accounts, it is usually possible to name someone as a beneficiary if you pass away. All you have to do is fill out a form from your bank. Upon death, all of your funds are paid to the beneficiary and afterward, the account with your name on it will close.

Sell Your Property to a Cash Home Buyer

You may prefer to skip all of these suggestions and sell your home right now for cash. A cash buyer is a great option if you want to sell fast. If there are too many repairs, or you don’t want to deal with the hassle of probate, consider selling to Home Buyer Tampa. We are cash home buyers in St Petersburg (and surrounding areas) that you can trust. Likewise, we buy houses in any condition! 

Interested in learning more? Contact us at 813-296-6200 to get a no-obligation cash offer today!