Why do we need an Estate Plan?

That’s the big question. To answer this, we has to discuss four smaller questions.

I – What is Probate?

– Probate is a procedure that allows a court to divide a deceased person’s property among family members.

– If a person dies without specific instructions on how to divide the estate among their descendants, the family must submit the estate to the court and ask the court for approval of the division. Court decisions are based not only on family approval, but also on other factors.

– The court system is where the judge examines the files and appoints an Executor to oversee the probate process. The Executor collects all information about the property, debts, creditors, family members, etc. of the testator, and investigates and understands the situation. He then announces the deceased’s death in the local newspaper and invites other people (creditors, banks, liens, friends, family, doctors, funeral homes, etc.) who want to challenge the estate to come forward. The Executor will also send notice to all known creditors of the testator.

– If people then go to court to challenge their estate, the court will take longer to resolve those challenges.

After all tasks are completed, the rest is distributed among descendants according to family circumstances.

II – What are the Pros and Cons of Probate?

→Advantages

1 – The deceased does not have to think about how his property should be divided. Let someone else do this job.

2 – Who will help the deceased in this process. A judge who has no feelings or empathy for the deceased and does not understand the deceased’s wishes and aspirations. The judge will divide his property based on the judge’s opinion, not the deceased’s wishes.

→Disadvantages

1 – Pay taxes: If the estate exceeds $12 million and the deceased died before his December 31, 2026, a 40% federal inheritance tax will apply. This number is subject to change after December 31, 2026.

2 – Costly:

3% of the estate’s value
Other related work costs:
— Court Fees: There are costs associated with taking a case to court for probate hearing. Courts are costly and expensive.
— Attorney’s Fees: the estate have to bear the costs of defending against claims from creditors, banks, liens, hospitals, friends and family. This is to protect the estate of the deceased so that there is something left for the inhabitants after all disputes have been resolved.
— Other costs: There are also other costs associated with the case: appraisal fees, land survey fee, accounting fee, probate bond, publication, filing, disputing, discovery, litigation, etc.

3 – Time Consuming: It will take months, years, or decades to solve all the challenges. Families can rest only when all challenges are resolved. Therefore, family members may end up with nothing and no immediate access to available resources (property), regardless of their specific needs.

4 – Lost all assets that the decedent worked hard for:

A person who has no tools to protecting his wealth has no guarantee that he will leave anything to his family after death. The reason is that creditors can confiscate all his property before he leaves anything for his children.
Example: Before dying, the deceased caused the deaths of other people. If he does not have adequate insurance, he must use all of his property to pay the victim before his family receives the rest.

5 – A broken relationship – Family disorders: If the deceased did not leave any instructions, family disputes often arise over how this property should be shared fairly among all members of the family. This creates a rift within the family, with many families unable to meet after going through the probate process.

6 – Wrongful Division: After the court has resolved the dispute, it can begin to decide how the property should be divided. The judge is a stranger to the deceased and cannot understand what the deceased wants. As a result, the property may be divided in a way that is completely contrary to the wishes of the testator.

The wishes of the deceased cannot be fulfilled since the deceased has no instructions on how to divide their estate, if the deceased promised a gift to someone without supporting evidence, it will be difficult for that person to receive the gift after the deceased’s death.
Families may end up receiving nothing. Families get nothing after a costly and time-consuming inheritance process.

7 – Allow someone outside your family fight over your property: Non-family members (relatives, housekeepers, caregivers, ex-girlfriends, etc.) may step in and claim a share of the estate without the deceased’s direction. Whether this claim is true or false, the family will need to go through probate proceedings to resolve the matter.

III – Are there any strategy to avoid Probate or any solution to resolve this Probate problem?

– Yes there is a solution to this. Call Golden Attorneys today to discuss your options. The Golden Attorneys always have solutions to protect your wealth and family relationships.

IV – When should this be done?

– You should see The Golden Attorney as soon as possible. Don’t think of yourself as young; thus, you don’t need it now. It’s a wrong concept.

– The reason is that you buy insurance before an accident happens, but not after you have an injury or accident. Furthermore, you never know when an accident or death may occur. Therefore, waiting is not a strategy to avoid probate hearings.

– If you want to protect your hard-earned wealth and the family and children you love, contact The Golden Attorneys today. We can help you find a solution to avoid probate lawsuits and keep your assets safe for your family.

V – Now we can answer the big question above, “Why do we need an Estate Planning?”

– In general, everyone should have an estate planning as soon as possible because the costs (money and time) associated to resolve its problem is much higher than the cost to create an estate planning now.

Contact The Golden Attorneys now to help you protect your assets and family members before it’s too late because you cannot know when unexpected bad things may come. Protection and Prevention are always better than solving problems.