What’s so bad about Probate?

The following questions were posed to me on my radio show today: What’s so bad about Probate? and What is it and why do we want to avoid it?

First, what is Probate? Probate is a court proceeding used when estate planning is done wrong or not at all.

Second, what’s so bad about it? Here’s why you want to AVOID Probate.

1 – Probate is very slow (1 to 3 years) to get money to the beneficiaries.

2 – Expensive – 6% of gross estate. Six percent is a huge chunk of change for anyone to have to pay.

3 – The probate process will allow money to go to beneficiaries who are only 18 years old. Not many 18 year olds can manage all their parents money effectively. Would you want your 18 or 20 year old to have access to everything you have earned over 20 or 30 or 40 years? – NO WAY – So, to control the pay-outs to 18 year olds, or any young beneficiary, use a Trust.

4 – Probate does not handle money for beneficiaries who have special needs. The State can require that any inherited money be spent before the State will provide health care of a special needs person.

5 – Money passed through the Probate process does not keep money away from creditors of beneficiaries.

In summary, there are many answers to the question “What’s so bad about Probate?” and one simple solution: A well written Living Trust. A well written Living Trust can prevent all 5 problems listed above, so why don’t you have one? Get started today!

Gary A. Quackenbush, California Attorney

NOTICE: Nothing in this article is legal advice and you may NOT rely on it for any legal positions or arguments. So, check it out first. I’d be happy to discuss your individual situation in a free initial consultation.