The "P" Word - Probate

Even before I went into estate planning, I remember hearing, “you don’t want to go through probate” or “make sure you have a trust to avoid probate.” But is probate really such a scary process? The answer is - it depends. It depends on a lot of different factors and on the whole, avoiding probate is a goal for a lot of people. The probate system varies state to state, in some states it can be a short process, but in other states the process can require substantial involvement from the court system and could drag on for years. A long probate costs money and prevents assets from being distributed to beneficiaries. Many families do not want to suffer through a long and drawn out process dividing their loved one’s assets when they are mourning a significant loss.

Another downside of probate is that the process is subject to public record. In an era where it seems like everyone wants to be famous (hi instagram and tiktok), this probably isn’t the type of publicity you’re seeking. Going through probate can expose your family members to rather unsavory characters that may look to take advantage of beneficiaries, particularly those who may have recently inherited substantial assets. Moreover, if you are a public figure, you don’t want all of your assets and beneficiaries to become public record. How you wish to divide up your assets upon your death is a very personal decision. Some clients even prefer to structure their estate plan so that other family members don’t have full information about their estate. It is your right to leave your assets to the people or entities that you choose.

Despite the potential pitfalls, in certain states probate can be done relatively quickly with minimal court supervision. However, even in “probate friendly” states, a trust might be a more useful vehicle for long term planning for your children or incapacity planning for you and your spouse. In this case, something like a pour-over will might be a good safeguard if there are assets that are inadvertently left out of your trust. Every individual will have different needs and that is why your estate plan should be crafted to deal with your unique situation.