1. Methodical and Transparent Process to Transfer Assets: The executor of the estate takes the assets left in the deceased person’s name, pays off valid debts and expenses, addresses taxes and then distributes assets to beneficiaries. The court process includes methods to show records to interested parties and confirm payments were made correctly. That can be helpful if beneficiaries cannot work together to address these issues.
2. Validates the Will: When a will exists, the probate court confirms whether or not the will meets all the legal requirements to be recognized. Was it signed correctly? Is it the last one? Essentially, should we follow it? Keep in mind, the will itself has a very specific function, to speak to the court. That means that assets that say where they go through beneficiary designations aren’t covered by the will. Learn more about the role of and limitations of wills by getting a free video with misconceptions about estate planning delivered to your inbox.
3. Setting in Place a Responsible Party: A will typically states who should be trusted to be the executor, sometimes called personal representative. Whether or not a will exists, the probate court’s main job is to get a responsible person in place to deal with assets stuck in the deceased person’s name. Importantly, they won’t have responsibility or control over assets not stuck in someone’s name, like assets that list beneficiaries. The executor has the responsibility for collecting assets left in the deceased person’s name, paying expenses, addressing claims and distributing assets to the correct beneficiaries.

Overall, probate ensures that the deceased person’s assets are distributed according to their wishes, and that any outstanding debts and taxes are paid. While probate can be a lengthy and expensive process, it serves an important legal purpose and provides a formal framework and a methodical process for resolving disputes and ensuring that assets left in the deceased person name end up where they should.

1. Time: Probate can take several months or even years to complete, and that timeline is dependent on the court. This can be a burden on loved ones waiting to receive their inheritance and cause issues for assets that need immediate attention, like businesses and rental properties.
2. Cost: Probate can be expensive, with fees for attorneys, court costs, and other expenses. These costs can reduce the size of your estate and potentially leave less for your beneficiaries than other alternatives.
3. Privacy: Probate is public record. Often times, the financial information must be filed and in and of itself becomes public record. More and more, this information is accessible online. This means anyone can access court records and see the details of your estate, including the value of your assets and who is receiving them. This is a significant issue with the Prince Rogers Nelson Estate which I talk about in my podcast, Good Legacy.
4. Complexity: The probate process can be complicated, with many legal requirements and deadlines that must be met. This can make the process impossible for your loved ones to navigate on their own and stressful and difficult in any scenario. If you don’t need the benefits a probate provides or if you have a reasonable alternative option, why make your loved ones to go through it?
5. Conflict: The point of Probate is to put all the cards on a table that everyone’s invited to. That includes next of kin that aren’t included in your plan, but would be if you didn’t have one. In other words, disinherited people. Family disputes over the distribution of assets, which can strain relationships and cause unnecessary stress during an already difficult time, are far more likely in the probate process than in alternative administration.

By avoiding probate, you can potentially save your loved ones time, money, and stress, and keep your affairs private. In certain scenarios, there can be options to accomplish the transfer of assets without probate. So, how can you avoid it?