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You Should Understand a Bit about Probate in New York When You are Making Estate Planning Decisions
ILANA F. DAVIDOV, ESQ. MICHAEL DAVIDOV, ESQ., CFP NEW YORK ESTATE PLANNING ATTORNEYS
This paper is about the drawbacks of probate. Before we look at these drawbacks, we would like to emphasize the fact that probate is not an inherently negative thing. The state of New York does everything possible to provide an efficient and streamlined process. This having been stated, you should understand a bit about probate when you are making estate planning decisions.
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probate the validity of the will is determined by the court. Final debts are paid. The assets that comprise the estate are then prepared for distribution to the heirs according to your wishes as stated in the will.
THE DRAWBACKS
What are the drawbacks of probate? For one thing, the process of probate does not run its course overnight. The exact time line will depend on the circumstances. Relatively simple and straightforward cases will pass through probate in a matter of months. More complicated cases can take multiple years. The heirs to the estate that are named in the will are not going to receive their inheritances until the estate has been probated. For some, this is an inconvenience. Other people can experience hardships because they relied on the decedent on a day-to-day basis for financial support. In addition to the time consumption that comes along with the process, probate can be costly. There is a filing fee, and the executor is paid out of the estate's assets. In many cases the executor will call in a probate lawyer and an accountant. To prepare the assets for distribution to the heirs, appraisals and liquidation of property may be necessary, adding to the costs.
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Thirdly, privacy is lost during probate. Probate records are available to anyone who wants to know how you decided to distribute your assets.
For one thing, the process of probate does not run its course overnight. The exact time line will depend on the circumstances. Relatively simple and straightforward cases will pass through probate in a matter of months.
can arrange for the distribution of your monetary resources to your heirs. You are not confined to any one course of action. You may find that a vehicle of asset transfer that enables probate avoidance is more appealing to you than a last will. You can explore all of your options by discussing everything in detail with a licensed estate planning attorney. Probate is not the only thing to take into consideration. During the consultation you may become aware of other relevant factors that you never considered.
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receive monetary distributions out of the trust. The grantor of a revocable living trust will typically serve as the trustee and the beneficiary initially. As a result, you do not lose control of the assets that you have conveyed into the trust. You name successors to assume these roles after you pass away. After your passing, the trustee will distribute resources to the beneficiaries in accordance with your wishes as stated in the trust agreement. These distributions will take place in a timely manner outside of probate.
CONCLUSION
In summary, probate is a factor when you pass away while in direct possession of personal property. The heirs to your estate will not receive their inheritances until the estate has been probated and closed. Probate is not to be viewed as something that is negative. The state of New York provides an efficient and streamlined process.
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However, there are some inherent drawbacks that cannot be avoided. Probate is going to take some time, and costs will accumulate during the process. Privacy is lost during probate, because the goings-on are a matter of public record. If you choose to do so, you could facilitate the transfer of your assets outside of probate. The best way to become apprised of your probate avoidance options would be to discuss them in detail with a licensed estate planning attorney.
REFERENCES
Forbes http://www.forbes.com/sites/janetnovack/2012/10/14/the-forbes-guide-toestate-planning/ Nolo http://www.nolo.com/legal-encyclopedia/free-books/avoid-probatebook/chapter0-4.html
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