What is Probate?
Probate is the legal act of settling the affairs of a deceased person. During the probate process the appointed personal representative(s) is referred to as the executor(s) if there is a verified will or the administrator(s) if there is no will in place. The personal representative will have legal authority to notify creditors and settle the affairs of the estate. This includes paying debt and distributing inheritance owed and owned by the estate.
Responsibilities of a Personal Representative In NC
- Opening Probate
- Notifying Creditors
- Taking Inventory & Accounting
- Settling Debts And Taxes
- Distributing Inheritance
- Closing The Estate
3 Reasons Bad Things About Probate In NC
- Probate is Public
The probate process is open to the public. This means assets, debts, as well the last will and testament are accessible to the public. Public horror stories such as Anna Nicole Smith, Prince, & Jimi Hendrix highlight the pain and challenges that come from estate’s going through the probate process.
- Probate is Long
In North Carolina the probate process for most cases will take at least four months due to the fact that a notice to creditors will have to be posted and run for four weeks and an authorized publication. Then an additional three months must be observed to allow creditors time to state claims against the estate.
However, the process of gathering the inventory of the estate and addressing claims can be lengthy. In addition, managing heirs and inheritance and property within the estate often takes a considerable amount of time.
- Probate is Expensive
Depending on the size of the estate, filing fees and administrative fees in attorney fees, can add up. Expect to pay.
3 Ways to Avoid Probate in NC
- Set up a Family Estate Plan
The piece of mind and financial protection that comes from a solid estate plan is invaluable. Research the instruments needed to have a comprehensive estate plan such as last will & testament, living will, durable power of attorney, and health directive power of attorney.
- Use Joint With Rights Of Survivorship And Beneficiary Designations
Joint With Rights of Survivorship clauses in assets such as bank accounts generally states that upon the death of either of the owners, the assets will automatically transfer to the surviving owner.
Beneficiary designations are used to identify the recipient(s) of your health insurance benefits.
- Learn about advantages of putting assets in Trust
There are tremendous benefits to creating a trust. Trust are not only for the rich. The biggest advantage is that a trust allows you to AVOID PROBATE. When you place your important assets in a trust you will be able to dictate beneficiaries, avoid information being made public, avoid taxes, and avoid estate liability.
Give us a call or set up a free consultation and we can help direct you to an awesome Family Estate Planning attorney.
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