When an individual dies without placing their assets into a trust, those assets become subject to the probate process. This legal procedure involves validating the will (if one exists), identifying and cataloging the deceased’s property, paying outstanding debts and taxes, and finally distributing the remaining assets to the rightful heirs according to the will or state intestacy laws if no will is present. For example, a house, car, or bank account held in the deceased’s name alone would typically go through probate.
Avoiding probate offers several advantages. It can streamline the distribution of assets to beneficiaries more quickly and privately than probate court proceedings. It can also potentially minimize legal and administrative expenses associated with probate. Historically, probate served as an important public record and safeguard against fraud. However, modern probate can be a time-consuming and sometimes costly process, particularly for estates with complex asset portfolios or where family disputes arise. Utilizing alternative estate planning tools can mitigate these challenges.
