When a loved one passes away, the resultant grief can feel overwhelming. As tough as it is, family members must manage their grief and deal with responsibilities related to the estate. When someone dies, questions may or may not linger about who receives their assets. If a will exists, then the text reveals the answers. A will dictates who receives what when someone passes, and so proper estate planning often involves drawing up a will. Relatives should familiarize themselves with the basic principles of wills, estates and probate.
What is Probate?
Probate refers to the legal process designed to execute the instructions in a will. The heirs named in the will receive what is allocated to them. Probate, however, requires more than simply contacting banks, title companies and brokerage houses and asking someone to alter account ownership. Probate goes through the probate court in a local jurisdiction. A family law attorney specializing in wills and estate usually must be hired. In certain states, however, the will might undergo probate without an attorney if the estate’s value is minimal, according to Inheritance Funding. Depending on how the decedent set up his or her estate, a will may not need to undergo probate.
Alternatives to Probate
Wills and probate aren’t the only means of distributing a deceased person’s assets. When someone is the sole owner of a mutual fund or property, probate becomes necessary to establish which heir receives the assets. If a beneficiary is named on a mutual fund, that person assumes ownership of the fund upon the passing of the primary holder. When two people own a property, the co-owner may automatically become the sole owner upon the other person’s passing. For more information, check state laws and review statutes related to “rights of survivorship.” Other strategies exist for people wishing to avoid legal disputes, capital gains tax and more. For homeowners, holding the property in a revocable trust that is then passed on to the beneficiary upon passing avoids the issue of income tax and probate, according to Modern Wealth Law.
Discuss Matters With an Attorney
When you know that you are named in a will, perhaps you and the person drawing up the will should talk with an attorney about alternatives to probate, according to EstatePlanning.com. The average person may not be familiar with joint ownership of accounts or other options. Working with an attorney increases the chances that all parties can reach a desirable solution.
Don’t delay on matters related to probate and estate planning. No one likes to think about the passing of a loved one, but doing so is necessary to deal with the aftermath. It’s best to be prepared in advance than to not know what to do when they pass away.
We are here to help you remember your loved one once they have passed away. If you have a loved one who has passed on, get started today with MyObits and create an obituary to preserve their memory.
