Estate Settlement
Dec 04, 2024
How to Stop Mail for a Deceased Person: 5 Steps
Learn how to stop mail for a deceased person with our 5-step guide to protect their identity and ease estate management.
Probate is the legal process that arises after someone dies and entails a judicial assessment of whether a will is valid and includes administering the deceased person's estate.
This process involves administering the deceased person's estate assets, which can be in the form of personal property or real property, such as real estate.The probate process is initiated with or without a will.
Even if there is a will, probate is frequently required when a deceased person's surviving estate is of substantial value.
Although probate is essential to guaranteeing the orderly transfer of assets, many people want to avoid it for various reasons.
So a question we often get asked here at ClearEstate is: "how can I avoid probate in New York? to save my family the burden of dealing with my estate"
There are ways for people to avoid excessive probate costs and complexities by having an easily authenticated will or using investment vehicles that do not require probate. Due to its time-consuming and expensive nature, which delays inheritance and lowers the estate's worth, many people try to avoid probate.
A surrogate court judge must determine a will's validity, and the process of managing the decedent's estate is handled during probate. You can start the probate procedure with or without a will.
The process involves identifying the person's final assets, paying their last debts, and distributing their estate's property to the proper heirs.
Although each state has its probate laws, the procedure is very similar nationwide and is primarily handled by attorneys. It's helpful to engage either a probate attorney or probate professionals to know what's involved, whether you're are an executor or beneficiary.
The time frame of a normal probate process varies based on the estate's complexity, the state where the estate property is located, and whether there are any contentious issues or lawsuits. On the other hand, the usual probate process might take anything from several weeks to several months.
This section is not meant to overwhelm you, but to inform you on how grueling the probate process actually is.
The following provides an outline of the probate process:
Petition Filing: Initiate the estate proceeding by filing a petition to open the estate.
Notice To Creditors and Heirs: Inform all relevant parties of the decedent's passing and the probate process.
Inventory and Evaluation: All assets, including types of assets like real estate and personal property, are inventoried and appraised.
Taxes and Debt Repayment: This phase involves settling all debts and taxes.
Asset Distribution: Assets are distributed as per the will or intestacy laws.
Concluding the Estate: The estate closes when all assets are distributed.
We've also outlined in-detail the probate process in New York in our probate process guide: here
Depending on the size and complexity of the estate, New York's probate charges can change. Some of the expenses related to probate in New York include the following:
Filing Costs: Depending on the amount of the estate, the filing costs for probate in New York can range from $45 to $1,250.
Lawyer's Fees: Many probate lawyers bill by the hour, and the rates might range from $350 to $600. As a general rule, overall legal costs are normally equal to the total executor's fee, which is typically equal to 3% of the estate's value.
Executor Costs: The executor's fee/commission is determined by New York State law and is ordinarily equal to 3% of the estate's value. Additionally, executors are qualified to receive compensation for legitimate costs incurred while handling the estate.
Other costs: Other charges related to probate could include court costs, accounting fees, and fees for appraisals.
The probate procedure is time-consuming and expensive, so it's always a good idea to speak with an attorney about ways to avoid or streamline the probate process.
The existence, integrity, and legality of a will are frequently the main topics of probate proceedings. People could desire to avoid probate for several reasons:
There are multiple steps in the probate process, and the costs associated with each one add up over time. Expenses associated with the probate procedure include filing fees, legal charges, personal representative fees, and court costs.
The probate process, which entails locating the decedent's assets, paying off any debts, and dividing the remaining estate under the will, often takes three to four months to complete. Nevertheless, even a straightforward estate administration may take months longer to settle than usual. In New York - depending how busy the surrogate court is, the typical time to settle an estate is 1-2 years from the decedent's death.
One of the worst things you can go through is losing a loved one. Going through probate court makes your mourning more difficult or even brings up old feelings and family disputes. Access to accounts and resources becomes a concern for you, as does the repayment of obligations on behalf of the deceased and the burden of managing an estate.
There are several ways to avoid probate, including:
A living trust, also known as an inter vivos trust, is a fiduciary agreement established by a trustmaker, or grantor, while they are still alive. In this arrangement, the trustmaker transfers ownership of their assets to a trustee, who manages them on behalf of a beneficiary.
Although the trustee oversees the assets, they belong to the trust itself. Upon the trustmaker's death, the assets are directly transferred to the beneficiaries, avoiding the probate process.
Your assets are transferred without going through probate if you name another individual as a joint owner.
The owner should have the designation "right of survivorship." Upon the death of one of the joint tenants, the account is transferred to the remaining joint tenant.
In New York, there are two types of joint ownership that meet this criterion:
Beneficiary designations are not only required by most banks when opening a new account but are crucial for ensuring assets are transferred without the need for probate. In New York, owners can add a payable-on-death (POD) designation to bank accounts and a transfer-on-death (TOD) designation to stocks, bonds, and other securities. However, many individuals inadvertently overlook listing a beneficiary for their financial accounts.
According to an article in The Balance, a family avoided probate by employing a payable-on-death designation, ensuring their beneficiaries could access their assets swiftly and conveniently.
It can be challenging to comprehend and avoid probate, but it doesn't have to be. With the help of experienced estate planning attorneys, you'll have all you need to navigate the probate procedure successfully. This will help you stay calm through the legal terminology and intricate procedures to take charge of your estate planning to protect your loved ones.
Case Study: The Importance of a Living Trust - A Tale from New York
Background: In a heartfelt post on Reddit, a California resident shared a deeply personal and tumultuous journey that began with a simple birthday call from relatives in New York. The conversation took a turn when the individual learned about an inheritance that was never passed on.
The Situation: The individual, battling cervical cancer and recently evicted from a condo, was informed by her uncle that she was supposed to inherit the family home in Kings County, New York, as per her late mother's will. This revelation was shocking, especially since her father and stepmother had been renting out the property for years, falsely claiming to share the rental income with her.
Key Issues:
The Complications:
Why a Living Trust Could Have Made a Difference:
Conclusion: This case underscores the importance of having a clear estate plan, like a living trust, especially when minors are involved. It not only ensures assets are distributed as per the deceased's wishes but also provides protection against potential misuse or mismanagement. Proper estate planning can prevent such emotionally and financially draining situations, offering peace of mind to both the deceased and their loved ones.
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