Probate is a factor when you are leaving behind final instructions in a last will. If you maintain direct personal possession of your property through to the time of your death, it will become probate property at first. It will not be distributed to the heirs that you name in the will until after the full probate process has run its course.
There is a caveat to the above statement. There is a simplified probate process in the state of Connecticut. If the estate in question is valued at $40,000 or less, and there is no real property involved, a simplified probate process may be available.
People often choose to avoid probate, because it is time-consuming and potentially expensive. Simple cases are going to take months, and complicated cases can be stalled in probate for years. There are court costs, legal fees, accounting charges, appraisal and liquidation expenses, and other ad hoc costs that can significantly reduce the value of an estate.
You can avoid probate and the drawbacks that go along with it by creating a revocable living trust. With a revocable living trust you do not surrender control of the assets right away. You can act as the trustee and the beneficiary while you are alive and well.
As the grantor of the trust you are free to revoke or rescind the trust at any time, and you can change the terms as you see fit. The trustee that you choose to assume the role after your passing will distribute assets that have been conveyed into the trust to the beneficiaries that you name in the trust agreement. These distributions will not be subject to the process of probate.
Revocable living trusts are very popular among those who would like to avoid probate. However, there are other probate avoidance tools that are utilized as well. The optimal course of action will vary on a case-by-case basis.
Download Our Free Report on the Probate Process
In this post we answered a simple question about probate. If you would like to obtain some in-depth information about the probate process, download our free report on the subject.
This report will provide you with a solid foundation of good information to draw from. To obtain your copy of the report, click the following link: Free Probate Report.
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If you are currently going through life without an estate plan, action is required. People sometimes procrastinate because they don’t know where to begin, and this is understandable to some degree.
We can provide you with a free consultation if you are ready to put a plan in place. To request an appointment, send us a message through our contact page.
To learn more, please download our free article on what are the drawbacks of probate here.
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