How Our Probate Attorneys in Fort Collins Can Help You Avoid Probate

Probate is a legal process in which a deceased person’s estate is handled. While there are cases where probate is beneficial, some people prefer to avoid this process entirely. 

Avoiding probate can save you money and time, as well as protect your family’s privacy. Our probate attorneys in Fort Collins can explain your options and help you strategically structure your estate plan to avoid probate if that makes sense for you.

About Probate Court

Probate is a court-supervised process that takes place after a person has passed. During probate, the court oversees the administration of your estate, determines whether your will is valid if you have one, oversees the settlement of your debts, and ensures your assets are handled appropriately.

First, the court will likely appoint a personal representative to manage the estate. This person is often named in your will, but the court will still need to appoint them. 

If this person cannot fulfill their duties for any reason or is disqualified, the court may appoint an alternate person named in the will. If there is no one else named who is willing/able to serve, or if there is no will, then the court will appoint a personal representative. 

After the court selects this person, creditors and heirs must be notified. Then, your assets are identified, inventoried, and valued. After all taxes and debts are paid, the final step of this process is distributing your remaining assets.

If a will names beneficiaries, then any assets subject to probate generally go to those people according to the terms of the will. If there is no will, the assets will be distributed as state law outlines. It is important to note that probate procedures can vary depending on what state you live in.

Why Does Probate Happen?

Probate happens because a person’s assets and debts must be taken care of and distributed upon their passing. Additionally, families need to know who is in charge of managing an estate. For people who leave a will, this process helps to make sure that the will is valid. 

If someone does not leave a will, this is referred to as intestacy. When intestacy happens, the court will appoint a personal representative who will distribute certain assets based on your specific state laws.

The downside of intestacy is that it does not always properly reflect someone’s wishes. Because of this, it’s important to make sure that there is a will in place.  

Why Avoid Probate?

Some people benefit from probate, such as those in family disputes or those who need to clarify instructions. However, many people opt to avoid the probate process entirely for several key reasons. 

Expenses

Firstly, it can be very expensive, costing between three and seven percent of the total value of the estate. This is due to:

  • Fees: Probate involves fees for the personal representative, court filings, publication and notices, appraisals, taxes, accounting, and other services.

  • Bond premiums (when applicable): In certain estates, the court may require your personal representative to obtain a bond.

  • Attorney compensation: Probate attorneys must be compensated for their assistance as well.

  • Property costs: These refer to any costs from maintaining and/or selling property.

Time

Probate can take a long time. In some cases, it might last for a few months; in others, it can take years. However, it most commonly lasts between six months and a year.

It takes time to identify and value your assets, as well as to settle your debts. If there are any conflicts among heirs or beneficiaries, that can further complicate things. Other factors, like paperwork or problems locating heirs, can come into play as well.

Privacy

Probate court also impacts your privacy. This is because it creates public records surrounding assets, debts, and beneficiaries.

For families who would like to keep things more private, it is not ideal for people outside of the family to have access to such personal information related to finances.  

How Can You Avoid Probate?

Avoiding probate generally comes down to the way you structure your estate plan. Because probate focuses on addressing debts and distributing assets, this involves planning ahead and using strategies to help assets transfer outside of probate. There are several ways to structure things so that your assets transfer to someone else.

Three common strategies include:

  • Revocable living trusts: With a revocable living trust, you can legally transfer the ownership of your assets during your lifetime. Upon your passing, they can usually be distributed among named beneficiaries without the need for probate court. 

  • Joint ownership: Another strategy is joint ownership with right of survivorship. This means that two or more people own an asset. When one of them passes, the property will typically go to the surviving owner or owners. State law will determine the rules for joint ownership.   

  • Beneficiary designations: These are official instructions that state who will receive select assets after you have passed, and they can help you bypass probate court. Life insurance policies and retirement accounts are two examples of these. 

Help From Our Probate Attorneys in Fort Collins  

At MKP Law, we offer comprehensive legal services, including assistance with probate, estate planning, and much more. 

Our probate attorneys in Fort Collins can help your family navigate the probate process, and our estate planning attorneys can help you structure your estate plan to avoid it. If you’re not sure what would be best, we can discuss your options in more detail and guide you toward the best plan for you.

We are here to help with all of your probate and estate planning needs. Contact us today for more information.