The loss of a loved one comes with many unexpected challenges. Losing a beloved relative or friend can be overwhelming, and the process of handling their affairs in the wake of such a loss only adds to the stress. Many families are eager to tie up loose ends and distribute the assets of the deceased. To do so, formal or informal probate will need to occur. For those not familiar with the term, probate refers to the legal process required to distribute the assets of the deceased. During the probate process, a representative is authorized to pay debts and distribute assets on behalf of the deceased. In probate, there are different routes: informal probate or formal probate.
Probate isn’t always necessary. If the deceased’s assets were properly funded into a living trust so that he or she died without any assets in their individual name, a trustee can distribute assets accordingly without probate and court involvement. This is the preferred route for many individuals, as the formal probate process comes with some downsides. Probate is a matter of public record, so if you’re especially private, seeing your family’s affairs publicized can be frustrating. The process can also be lengthy, with many months passing before the court approves the final distribution of assets. Expensive, time-consuming, and potentially public, it’s no wonder probate has earned such a bad rap.
Informal probate is an option worth considering if your situation allows for it.
Talk with your loved ones about your hopes for the future. Make plans to ensure your wishes are respected with the help of an estate planning attorney. It’s the best way to protect your family, friends and all you’ve worked towards.
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