WHAT ARE THE DISADVANTAGES OF PROBATE?
The disadvantages of probate are subject to wild and often inaccurate exaggerations. Benefits of probate exist! The most held notion about the probate process is that it is difficult and should be avoided. This misconception is an oversimplification of the truth. It does not account for certain aspects of probate that may be desirable.
THE PROS AND CONS OF PROBATE
A legal process following an individual’s death, the probate court establishes the validity of the person’s will. An inventory and accounting of the individual’s property, and provision for payment of any debts or taxes owed, are required. Distribution of any remaining assets is then determined. While a few well-known disadvantages of probate exist, there are important advantages.
This article will cover probate advantages vs. disadvantages. However, your best resource is the guidance of an experienced lawyer who is board-certified in probate administration by the Florida Bar. John Mangan, JD, MBA, and his team of estate planning attorneys with offices in Stuart and Palm City are worthy of your trust.
Benefits of Probate
Probate Enables Faster Estate Settlement
Probate enables you to close out creditors to the probate estate within a 90-day window. For comparison purposes, if an individual passes away and all their assets are held in trusts to avoid probate, there is a two-year window for creditors to submit a claim on the assets to pay the debts of the deceased.
Challenge A Creditor’s Claim During Probate
Probate may provide an opportunity to challenge the validity of a creditor’s claims in court. If you believe a creditor is wrongly trying to collect debts from the deceased, probate could afford you the chance to prevent paying unnecessary debts out of the estate assets. You might otherwise have to accept such claims at face value outside of probate.
Probate Can Silence Disagreement
Unfortunately, all relevant family and friends may not agree over how an estate should be handled. There could be disagreements about whether the deceased individual was of sound mind when decisions affecting the will were made. Probate court offers an opportunity to settle disagreements over an estate among named and potential heirs. Estate issues are sensitive and can create lifelong rifts between loved ones, so sometimes it is better to allow a neutral judge to make the final decision when there is a dispute.
There are also some clear disadvantages to probate.
Probate is a 6-12 month or longer process
Probate generally takes a very long time to complete. In the State of Florida, it can take anywhere from 6 to 12 months to finalize, or perhaps even longer, depending on the complexity of the estate. For those who want to quickly administer their loved one’s estate and move on, it may be advisable to avoid probate.
Probate administration is costly.
Probate can be a very expensive process. In Florida, you can expect probate to cost between 3-5% of the overall value of the estate up to $1 million. If the estate is worth more than $1 million, those percentages may decrease, but either way, you will likely be paying a large chunk of money to administer an estate through probate.
Probate publicity
Since probate is handled in court, and court matters are public record, the details of one’s estate may become public knowledge if it enters probate. Most of us do not want details about our lives and personal finances made available to anyone who asks. Thus, the lack of privacy involved in probate can be a major drawback.
When it comes to probate advantages vs. disadvantages of probate there is no steadfast rule for who should and should not use probate. Every situation is unique, and it is important that you consult with an experienced estate planning and probate attorney to discuss your specific situation and options. There are circumstances where probate could work to your advantage, and others where it should be avoided, so give us a call today and let us help you make a plan.
