Myth – Having a Will Avoids Probate
When planning for the future, one of the biggest misconceptions people have is that having a will ensures their assets won’t go through probate. While a will is an essential component of any estate plan, it will not help you avoid probate. To truly bypass the often lengthy, costly, and stressful probate process, you need to consider setting up a trust or, at the very least, using a beneficiary deed for real property.
What is Probate, and Why Should You Avoid It?
Probate is the legal process by which a court oversees the distribution of a deceased person's assets. While probate ensures that debts are paid and assets are distributed correctly, it comes with significant downsides:
Time-Consuming: In Arkansas, the probate process will take at least 6 months. The process can also be challenged and delayed.
Expensive: There are Court fees, publication fees, attorney fees, and other costs can quickly add up, eating into the estate’s value.
Public Process: Probate is a matter of public record, which means anyone can access details about your assets and beneficiaries.
A will dictates what will happen in probate, but it will not help you avoid probate. Avoiding probate can save your loved ones time, money, and unnecessary stress while keeping your financial matters private.
The Benefits of a Trust
A trust is a legal entity that holds your assets during your lifetime and distributes them according to your instructions after your death. Trusts bypass probate entirely because the assets are no longer considered part of your estate; they’re owned by the trust. Key benefits of using a trust include:
Avoiding Probate: Since the trust owns the assets, they don’t need to go through probate.
Privacy: Trusts are not part of the public record, keeping your financial affairs private.
Flexibility: You can set specific conditions for how and when beneficiaries receive their inheritance.
Control: You retain control over the assets in the trust during your lifetime if you establish a revocable living trust.
The Simplicity of a Beneficiary Deed
If a trust feels like more than you need, a beneficiary deed (also known as a transfer-on-death deed) is a simple, cost-effective alternative for real estate. In Arkansas, a beneficiary deed allows you to name a person or persons to inherit your real property upon your death without the property going through probate. Beneficiary deeds are a straightforward way to ensure that one of your most valuable assets, your home or other real estate, passes to your heirs without probate complications.
Why You Should Act Now
Estate planning isn’t just for the wealthy or elderly; it’s for anyone who wants to make things easier for their loved ones. Without proper planning, your assets could be tied up in probate, diminishing their value and causing unnecessary stress for your family. Taking steps to set up a trust or beneficiary deed can provide peace of mind and financial security for those you care about most.
In Arkansas, avoiding probate requires proactive planning. Whether you choose to establish a trust, use beneficiary deeds, or a combination of both, the key is to act now. Speak with an experienced estate planning attorney to determine the best approach for your unique situation. By taking these steps today, you can ensure that your legacy is protected and your loved ones are spared the headaches of probate tomorrow.
For personalized guidance and to start the process, contact Katie Griffin at Davidson Law Firm at katie.griffin@dlf-ar.com or 501-374-9977
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