avoiding probate

AVOIDING PROBATE:  A complete Estate Plan including a Revocable Living Trust, Durable Power of Attorney, Advance Healthcare Directive (Living will), and Pourover Will is used to AVOID PROBATE.  Probate is a state court process which occurs when the owner of assets dies, leaving no joint owners or pay on death beneficiaries.  The court admits your will, if any, and scrutinizes it as to its legality, and your Executor is given authority over your estate.  Your assets and debts are inventoried.  Your heirs are listed and the court, eventually, makes an order directing the Executor to give the assets to the heirs.  If you don’t have a will at death, the law of the state in which you live will determine who your heirs are, and the court will carry out the law.  An Administrator is named to oversee the court process, and to give the assets to the heirs at the conclusion of the probate process. 

In California, probates typically take nine months to two years to complete, and cost the estate various fees which range from 3% to 6% of the gross value of the estate.  The net value, or equity, of the assets is not important when determining fees or whether or not probate administration is necessary.  The statutory executor and attorney fees on a one million dollar estate are $23,000.00 EACH!

WHO GOES TO PROBATE:  In California, real estate with a gross value of $20,000.00 or more must be probated, if the decedent is the only owner.  If the decedent is the only owner of all other assets having a combined value of more than $100,000.00, those assets also must be probated. 

ASSETS WHICH ARE NOT SUBJECT TO PROBATE:  Assets held in joint tenancy with the decedent, or which have a named beneficiary, or are “pay on death” type assets, do not typically go through probate.