Probate Tips for Getting Through the Process Faster and with Less Hassle

Probate Tips for Getting Through the Process Faster and with Less Hassle 

Probate lawyers are well aware of the hassles and headaches that families face when a loved one’s estate goes into probate.  Not only might a family have struggled to make ends meet due to the inability to afford long-term care insurance, but the process can drag out, eating up not just time but also resources that would have otherwise gone to beneficiaries.  Appointed executors find themselves with burdensome responsibilities that can compound their grief.  In order to navigate the process as quickly and smoothly as possible, probate lawyers recommend you keep the following in mind:

Probate Tip #1:  Hire an Experienced Probate Attorney

It may be tempting to navigate probate alone, but a good probate lawyer will be able to make the entire process more efficient.  The attorney’s expertise will guide you steadily in the right direction and keep you on track for closing probate as quickly as possible.

Probate Tip #2:  Notify Creditors Quickly

Part of the probate process is making creditors aware of the death.  As long as the probate is open, creditors can come looking for payment, which can significantly slow down process.  Instead, it is better to get everything lined up as quickly as possible to be able to move on to the next phase.

Probate Tip #3:  Get an Appraised Inventory

As the executor works with the estate, he or she should be creating an inventory of its assets and getting appraisals when appropriate, whether on personal effects, real estate, or other assets.  The courts may need to be involved with the process, so discuss it with your probate lawyer.

Probate Tip #4:  Don’t Miss Deadlines

There are specific deadlines set for when documents need to be filed.  Missing these deadlines will lead to the need for more court appearances (i.e. time, hassle and more money), as well as keeping probate open—and the estate vulnerable—for that much longer.

Evan H. Farr on Google +

Timeshare Traps and How to Avoid Them

Timeshare Traps and How to Avoid Them

If you are fortunate enough to go on that well-deserved vacation this year, then there is a good chance you will find yourself listening to the all-too-familiar ‘timeshare marketing pitch.’   Most people are familiar with the concept of a timeshare, but there is more than meets the eye.  The repercussions of owning a timeshare can vary tremendously depending on many things, including whether it is a real property interest, a mere right to use the property, or some other arrangement.  

#1 – Timeshares are not Inherently Bad Investments.  If a timeshare really interests you (and they are legitimate and worthwhile investments for many families), you can plan in advance to take ownership the right way and avoid legal traps and snares down the road.  Most people do not realize the thicket of possible legal ramifications inevitable to owning one (or more).  Timeshares are typically sold in a high-pressure environment, chock full of free food, gifts, and even vacations; these tools are all part of a business model intentionally designed to get vacationers to make impulsive buying decisions.

#2 – Type of Ownership is Critical.  If you own real property outside Virginia and die without proper estate planning documents in place (no, a simple Will is not enough), then a representative of your estate must appear in every state where such property is located.  This means that if you live in Virginia but you own a timeshare for one-week in Florida, if it is considered “real property,” then the Florida courts must determine how and to whom your interest is distributed. 

If your purchase of the timeshare is in the form of a deeded contract, your interest is considered ownership of real property.  Just like your residence, this real property may be sold, rented, gifted, or given to your heirs after death.  Similarly, your timeshare interest may also be subject to real estate taxes and probate.  While taxes are usually included in your timeshare maintenance fee, the disposition of your ownership interest after your death is another issue.  If you die without a trust to dispose of your assets, then the court system where the timeshare is located will either “probate” your Will, or follow the statutes of the state if you have no Will.  In any event, dying without a trust and with real property can cause major headaches for your executor. Luckily this can all be avoided.

If the deed to your current or prospective timeshare is a “leasehold deed,” then it means ownership only lasts for a specified period of time.  A “right to use” contract means what it sounds like – the purchaser acquires a right to use and enjoy the rights of the property owner (usually a resort).  However, the pitfall of a “right to use” contract is that some benefits you may not care about, like a club membership, may be included.  The “right to use” form of timeshare acquisition is used heavily overseas and in Mexico, because the ownership of foreign real property interests opens a door to many more legal complexities.

#3 – You Should Not Decide Then and There.  Do not sign anything before you leave, unless you already have a revocable living trust and have already met with your lawyer regarding the timeshare you are considering.  The concept of a timeshare is attractive, but before saying “yes,” it is absolutely imperative to speak with a good estate planning attorney.  For those who own timeshares already, whether or not you are considering an additional purchase, it is very important to be sure that transfer of your ownership interests in these timeshares upon your death will not result in expensive and time-consuming paperwork for your heirs.

Image: photostock / FreeDigitalPhotos.net Evan H. Farr on Google +

Easy way to explain (or understand) the cons of Probate

 Why Most People Want to Avoid Probate

First, it requires frustrating intrusion by the court, lawyers, and the public into a very emotional, private, family time. A judge may have to determine who is a legitimate creditor, and may have to rule on distributions to children and other beneficiaries. Your estate may have to hire a lawyer to shepherd the executor through the legal maze.

Second, all of your affairs will become public knowledge. The contents of your will would be on file in the courthouse, for all to read and wills are read. They are read by salesmen, by newspaper reporters, and by the morbidly curious, all seeking in one way or another to take advantage of the publicity required by the probate process.

Third, probate takes time. Unless your executor is absolutely certain that there are no debts owed by the estate (a rare occurrence, since almost everyone leaves some small debts behind) and is to accept personal responsibility for your debts, the Virginia probate law mandates that your assets not be distributed for one year after you die, to allow creditors time to petition the court for full payment. Any assets distributed before that time come with a heavy cost for your executor he or she is personally liable for the repayment of all of this amount, even if the beneficiaries to whom distribution is made have already spent the amount distributed. Thus, your executor will likely be very hesitant to distribute before all debts and taxes are paid. The court, not your family, will supervise and authorize the settling of all debts and the payment of inheritances, in its time and with its delays.

Fourth, on a national average the probate process takes from five to eight percent of your family estate out of the hands of your beneficiaries and gives it to the courts and other outside individuals. In Virginia, this is usually lower, but can also be higher in the event of unusual circumstances, such as a will contest. Planning with a trust can save the average American family about $30,000 in probate fees, attorney fees, and court costs alone, according to a national study by the AARP. The up front cost of a trust is only slightly higher than just a will, but the savings in the end can make the initial expense more than worthwhile.

Fifth, if you are not competent at any time before your death, the trustee of your living trust can serve as the caretaker of your property. This can avoid the expensive and embarrassing public guardianship/conservatorship proceeding, where your children have to prove that you are not able to manage your own affairs. A living trust combined with a power of attorney can provide the most complete protection available. Evan H. Farr on Google +