What is Probate?
Probate is the legal process which is followed after a person dies. This process is necessary to prove to the court the terms of the will, the assets of the deceased and the beneficiaries of the will. Once these matters are proved, the court will issue a document known as Letters Probate which enables the legal representative (the executor or administrator) of the deceased person to legally distribute the estate property. A properly prepared will helps to speed up the process of probate and the distribution of the estate.
Probate is the legal procedure your heirs must go through in order to receive your property upon your death. The drawbacks of having your estate go through probate are the cost involved and the amount of time it takes to complete the procedure. Probate is not a necessary evil your heirs must encounter. It can easily be avoided with proper estate planning.
“Probate” is a court proceeding that takes place after you die. The main reason children have to go through probate is because they need to “transfer title” of their parents’ assets to themselves after their parents die. The typical probate court proceeding usually lasts about one to two years from the beginning to the end. On average, the fees associated with probating an estate range from 6% to 15% of the GROSS value of the estate. Yes, the gross value of your estate. That means that your $500,000 house with $1,000 in equity means that in Probate, your heirs will be paying probate fees on a $500,000 house, or in other words, paying fees on $499,000 of assets that you don’t even own!
In Texas, probate can be a relatively simple process, if proper planning is done. Probate is the court proceeding whereby your will is recorded and it is determined that it meets all the legal requirements of state law.The word probate comes from the Latin word meaning to prove and is a court procedure designed to prove who is entitled to inherit the assets of a person who has died. Probate can be accomplished with or without a Will. Probate is designed to protect the rights of heirs and creditors. It ensures that debts and taxes are paid and that any remaining property is distributed and titled in the names of rightful heirs. Without proper planning, it can be a lengthy, complex and expensive process. A properly drafted Will minimizes most of these concerns. Texas law allows you to name an independent executor who may operate virtually free of court supervision. An independent executor does not need to seek court approval for most actions, while a dependent executor must seek court ap
Many persons elect to use a revocable inter vivos trust as a will substitute primarily to avoid probate. Probate is a court-supervised process which has as its ultimate goal the transfer of property from an individual who has died (the “decedent”) to that individual’s beneficiaries who are identified in a will. A probate has advantages and disadvantages. For example, if a dispute arises about the distribution of a decedent’s property, the probate court is accustomed to resolving such disputes expeditiously and in accordance with well-defined rules. Disadvantages of a probate include its public nature and, sometimes, the expense. Also, many probates are very lengthy, particularly when compared to the time required to administer the estate of a person who has created and funded a revocable inter vivos trust. Another advantage of a revocable inter vivos trust is that it enables you to have your assets managed during your lifetime, if such management is necessary or desirable, and may enab
