Estate Planning

May 16, 2025June 5, 2025

What Happens When Probating an Estate

Probating an estate involves a court-supervised process of validating a will, identifying and valuing assets, paying debts, and taxes. The last act is distributing the remaining property to beneficiaries. The personal representative, often the executor named in the will, is responsible for overseeing this process.

While this may sound like a straightforward process, let me assure you that probating an estate is anything but easy. Unless you have probated an estate, this process is like riding a mechanical bull with steel spikes everywhere you can fall. The best way I can describe this process is that it’s a multi-dimensional effort. The difficulty is dealing with how the estate was left. The size of the estate, available financial resources, the quality of the deceased’s instructions, and the heirs of the deceased.

Navigating the Estate Minefield

Let’s keep in mind what probate is and when Probate is necessary. The probate process is invoked after the death of a family member. Emotions are running high, and survivors are not always thinking rationally. Even when the deceased has put their affairs in order, there are always questions to answer and “things” to distribute.

Hopefully, with a thorough estate plan, an estate can be settled with minimal conflict, unlike depicted in the picture above. Probate issues can stem from various challenges, including family disputes, will contests, creditor claims, and complex assets. Delays in the process, costly fees, and the public nature of probate can also create complications. When there is no will or the will does not have a clear intent about estate distribution, obtaining the services of a probate attorney is crucial.

An attorney will help you navigate the state’s probate code and local probate process for scenarios in which there is no will. The attorney can also provide assistance to either challenge the will’s validity or prove the document is valid, depending on your position, the facts of the situation, and the probate code.

In any case, having a documented will or trust can’t be overstated. Your wishes are clearly stated and leave less room for dispute. Documents we produce will withstand challenges. Appointing an executor after a person’s death requires everyone to agree on that person. Keep in mind, the clock is ticking on the estate and things like taxes are going to hit at some point. Fighting challenges without a will or living trust after the fact may feel like you’re boiling yourself in oil. Give us a call, we can help.

May 16, 2025June 5, 2025

Failing to Plan is Planning to Fail

One of the most frequent reasons we hear for failing to plan is “I don’t have the time”. Another reason we hear is “It’s on my list of things to do”. I’ve never met anyone who didn’t want the best for their family. Leaving life is never on our time frame, so procrastination is never in our best interest. Not getting around to estate planning has serious consequences, especially when talking about estates.

Estate planning is crucial for ensuring your assets are distributed according to your wishes and for minimizing potential burdens on your loved ones. However, many common mistakes can undermine even the best-laid plans. One of the most significant estate planning mistakes is simply not having a plan. Whether due to procrastination or assuming that estate planning isn’t necessary, many people delay or neglect this critical task.

If you’ve experienced life changes, such as marriage, divorce, or childbirth, failing to update beneficiaries can lead to unintended consequences. Joint ownership of property and accounts can also lead to inequities if not planned effectively. Regularly review your joint accounts and beneficiary designations and ensure they align with your plan.

Review your estate plan at least every three to five years or after any major life event. Periodic updates ensure your plan reflects your current circumstances and intentions. It’s also critical you talk to your estate planning team whenever you have a significant life change. event. Periodic updates ensure your plan reflects your current circumstances and intentions. It’s also critical you talk to your estate planning attorney whenever you have a significant life change.

Failing to plan is at the top of most estate planners list of mistakes. Estate taxes (also known as inheritance or death taxes) can take a hefty chunk out of your estate, reducing the amount that will pass on to your heirs. This can be troublesome for estates that may exceed exemption limits or fail to take advantage of tax-saving strategies.

Failing to plan for these taxes could result in an unnecessary tax burden that could diminish your wealth, and in extreme cases, require the sale of valuable assets, such as real estate, business interests, or investments.

May 16, 2025June 5, 2025

What is Estate Planning ?

Estate Planning is a process that captures your life’s accomplishments. The system packages these accomplishments gently into one or more legally binding documents. Traditionally, families transfer assets from one generation to the next, providing future generations with a financial advantage.. The planning includes the bequest of assets to heirs, loved ones, and/or charity, and may include legal tax avoidance.

While states may change rules and regulations, the fact remains that failure to plan is planning for failure. You have worked all your life, accumulated successes, but you can’t take any of it with you. Most people have acquired “things ” in their lives and have shared them with their loved ones. People use the term “Generational Wealth” to describe the passing of wealth to the next generation.. Generational Wealth refers to the accumulation and transfer of assets and resources. Keeping it in the family and minimizing negative financial impact is what financial planning is all about. Those assets can include cash, stocks, bonds, and other investments, as well as real estate and family businesses.

Estate Planning documents legally bind and explain to survivors how you will divide or not divide your assets. They also establish one of the most critical aspects of planning. The WHO, whose responsible for carrying out your instructions. The person whose assets are to be divided selects a trusted party and is called the executor. Best case scenario, this person executes your plan to fruition.

Estate Planning Value Proposition

Estate planning also removes the potential for having your estate go through Probate. In common law jurisdictions, the court of law “proves” a will through the judicial process of probate. Courts of law accept estate planning documents as a valid legal document.. That is the true last testament of the deceased. Unfortunately, for this thing called property, without a “Living Trust” the settlement of the estate can be tied up for years. The end result is a lot of cost and unnecessary money wasted in the courts. Court costs can exceed the value of the estate because often, there are warring parties. These parties have, different ideas regarding who should get what and how much they should get.

Bluntly, everyone is going to leave this earth, and death has done more to fracture families. While preparing these documents in advance may not avoid a full fracture, they can ease the pain of your transition.