Losing a loved one is difficult. Having to deal with legal matters you never knew existed shouldn’t be part of the process.
Estate settlement is overwhelming for most families. They’re grieving. They don’t know where to begin. They feel lost in a world of legal jargon and paperwork.
Probate legal services are a thing for a reason.
Let’s debunk some myths about estate settlement.
Most people don’t understand what estate settlement really entails. They think it takes a couple of weeks. They think it doesn’t cost much money. They think things just sort of… happen.
Think again.
What You’ll Learn
- What Is Estate Settlement and Why Should You Care?
- What is Probate? The Simple Explanation
- Why Does Probate Take So Long?
- Probate Mistakes to Avoid
- The Value of Probate Legal Services
- Documents You Should Have Handy
What Is Estate Settlement and Why Should You Care?
Estate settlement refers to the process of wrapping up someone’s financial obligations after they pass away.
This includes paying any remaining debts they had, closing accounts, and transferring assets. Simple, right?
If only it were.
Estate settlement involves filing paperwork with the court. Notifying creditors. Opening an estate bank account. Figuring out how to distribute assets. When families navigate probate with clarity, they can move through this process efficiently with the help of probate legal services.
Here’s what estate settlement typically includes:
- Locating the will and filing it with the probate court
- Notifying beneficiaries and relevant parties of the death
- Paying off debts and closing accounts
- Cataloging and appraising assets
- Distributing assets to beneficiaries
Estate settlement is about honoring your loved one’s final wishes while ensuring their legacy is protected.
What is Probate? The Simple Explanation
Probate simply put is the legal process your estate goes through after someone dies.
This court-supervised process ensures all assets are inventoried and distributed according to the deceased person’s will.
In other words, if your family member died without a will, their estate would still go through probate.
But the court decides how to distribute assets.
Here’s the real problem…
A study by Caring.com showed that nearly ⅔ of Americans don’t have a will.
Your loved one’s estate may go through probate. Whether they have a will or not.
Probate can be complex, but it’s necessary to protect your family.
The probate process includes the following steps:
First, the executor named in the will petitioning the court to begin probate. The court then officially appoints the executor. An inventory of all assets is compiled. Creditors are notified and given time to file claims. Once debts are settled, remaining assets can be distributed to the beneficiaries.
Sounds simple enough. But any variation creates complications. That’s why hiring probate legal services helps.
Why Does Probate Take So Long?
Fun fact.
The probate process takes about 9-20 months on average.
Yet most people believe it takes half that amount of time. A Trust & Will survey showed only 2% of Americans could accurately estimate probate length.
Why do you think probate takes so long?
Illness or death of the executor. Lots of paperwork. Deadlines to meet. Court delays.
And did we mention costs?
Fun Fact #2: Probate costs usually range between 4-10% of estate value.
That means, for an estate worth $500,000. Probate fees could range from $20,000 to $50,000.
Yikes.
Don’t fall into this trap.
Learn how to navigate probate quickly and cost-effectively.
Probate Mistakes to Avoid
Let’s look at some mistakes families make during probate.
Starting probate too late.
When someone dies, you’ll want to start probate as soon as possible. But don’t put it off while you grieve.
The longer you wait, the more likely you’ll run into problems.
Trying to do estate settlement on your own.
While you can certainly file the necessary paperwork on your own, most people don’t realize how complicated estate settlement can be.
A simple mistake could cost you weeks or even months. Not to mention thousands of dollars.
Saying nothing to beneficiaries.
Conflict is practically inevitable during probate.
But much of that stress can be alleviated by simply keeping beneficiaries in the loop.
Not accounting for digital assets.
DEATHWARE.
Did you know there’s actually a word for this?
When people pass away and their digital assets are overlooked.
Bank accounts, investment accounts, and real estate are tricky enough.
But don’t forget about digital assets.
How Probate Legal Services Can Help
Probate legal services do more than complete paperwork.
They foresee problems before they happen. They know how to streamline the probate process in your state. And they’ll help you avoid the costly mistakes families make on their own.
Professionals help you…
- … navigate complex tax implications
- … deal with disputes among beneficiaries
- … avoid common pitfalls
- … meet strict deadlines
- … alleviate emotional stress during a difficult time
Don’t make probate harder than it has to be.
Meet with a probate professional and learn how they can help your family.
Think of them as your personal estate settlement guide.
They know the terrain.
Documents to Have Handy
Unless you want to pay professionals to find these for you…
You’ll want to have the following documents accessible before your meeting.
Will. Hopefully, your loved one planned ahead and had a will prepared. Make sure you know where it’s located. If the will is not stored safely or gets lost, you’ll come across some major headaches.
Death certificates. You’ll need several certified copies of the death certificate. Any financial institution or agency will require their own copy.
Account statements. Bank accounts, investments, and retirement accounts.
Property deeds/titles. Real estate, vehicles, and any other property that requires a title.
Insurance policies. Life insurance policies and any other insurance policies your loved one possessed.
Tax returns. Providing the last several years of tax returns can help establish the estate’s financial standing.
The more prepared you are, the quicker your family can move on.
When To Hire Probate Legal Services
If your loved one’s estate is small with few assets, you may not need probate legal services.
Many states offer small estate administration for estates that fall below a certain dollar amount. Simple estates with no debts or disputes may not require probate at all.
That being said, here are a few instances when hiring probate legal help is absolutely necessary:
- The estate contains real estate in multiple states
- Beneficiaries are likely to dispute will provisions
- There are business interests or complex investments involved
- The deceased person had significant debt owed to creditors
- The deceased died intestate (without a will)
- You feel overwhelmed
If any of the above apply to your situation, contact a probate attorney near you.
Bottom Line: Honor Their Legacy
Estate settlement isn’t easy.
It takes time, and a lot of it. It’s stressful and emotionally taxing. And most families don’t even know where to begin.
But you’re not like most families.
You want to honor your loved one’s legacy. This means making sure their final affairs are handled correctly.
Which might mean bringing in professional probate legal services to help.
To review:
- Know what estate settlement involves
- Know what documents you should have handy
- Learn about probate and how it works
- Avoid the mistakes families often make
- Hire professional help when you need it
- Communicate with your beneficiaries
It’s your duty to your family and your loved one to get everything right.
Take a deep breath, and let’s get started.
