There are various different ways to get assets into the hands of your loved ones after you pass away. The most commonly utilized estate planning document is the last will. You may assume that the heirs to your estate receive their inheritances right after you die when you use a last will to state your final wishes.
Unfortunately, things don’t happen very quickly when you use a last will to facilitate the distribution of your personally held assets. Before inheritances can be distributed, the will must be admitted to probate.
Lengthy Process
If you were to create a last will, you would name an executor. This is the person who would be charged with the estate administration tasks. The administration of the estate would be supervised by the probate court.
During probate, the court would examine the will to determine its validity. If any challenges were presented, arguments could be made during probate.
Final debts must be paid during probate, and creditors are given some time to come forward. The executor must prepare the assets for distribution to the heirs. This can be a time-consuming process in many cases, because liquidation of certain types of property may not happen overnight.
In all, if things go relatively smoothly, the process may take less than a year. The exact duration the process will vary depending on the circumstances.
No one would particularly want to wait for a year or more to receive a rightful inheritance. However, this time lag can present serious financial difficulties for family members who may have been relying on the decedent.
Quicker Asset Transfers
It is possible to arrange for your heirs receive their inheritances outside of probate. There are a number of different ways to go about it. One very common probate avoidance tool is the revocable living trust.
With this type of trust, you do not lose control of the assets in the trust while you are alive and well. You can act as the trustee and the beneficiary at first, and you name successors to assume these roles after you pass away.
When you do in fact expire, the successor trustee will follow the instructions that you leave behind in the trust agreement. The trustee will distribute inheritances to the beneficiaries in accordance with your wishes.
The probate process is not involved when you utilize a revocable living trust to transfer your monetary assets to your heirs. As a result, the inheritances are received in a more timely manner.
Learn More About Revocable Living Trusts
If you are interested in learning more about revocable living trusts, download our special report. This report will provide you with a great deal of in-depth information, and it is being offered free of charge. To get your copy, click this link: Indianapolis Living Trusts.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.
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