Probate is the legal process of administering a deceased person’s estate. In many ways, it makes a lot of sense to have your estate pass through probate, as the involvement of the court can act as an important check to help make sure things are done properly and avoid legal issues for your loved ones down the line.
Many people, however, take steps to try to avoid having their estates passing through probate. What are the key reasons for this?
A faster distribution
Probate can take time, especially where the estate is complex. If you would prefer that the assets you leave make their way to their intended beneficiaries as quickly as possible, then you may want to keep them out of probate.
Maintaining privacy
It’s often said that money can change people, but it’s not just the people who get the money that can be changed by it. Those around them sometimes can, too.
If you are leaving your child or a friend a considerable sum, you might prefer to keep this quiet in order to reduce the risk that those around them don’t become resentful or that those with ill intentions target them. If you are leaving a business behind, you may not want competitors to learn its true value if it could give them an advantage they currently do not have.
Information about estates that pass through probate can become public, so others can see the figures and other personal or confidential information involved. Avoiding probate can help you keep the details private.
There are various ways to keep an asset out of probate. Learning more about them can help you make informed decisions for your estate plan.
