Estate Planning

Will Facts

August 25, 2024/3 Comments/in carollawsonesq, carollawsonpa, carollawsonpesq, ClearwaterEstatePlanning, Elder, Estate Planning, Probate/by Carol A. Lawson, Esq.

A will has no legal authority until after death. So, a will does not help manage a person’s affairs when they are incapacitated, whether by illness or injury. A will does not help an estate avoid probate. A will is the legal document submitted to the probate court, so it is basically an “admission ticket” to probate. A will is a good place to nominate the guardians of your minor children if they are orphaned. All parents of minor children should document their choice of guardians. If you leave this to chance, you could be setting up a family battle royal, and your children could end up with the wrong guardians.

Why You Should Want To Avoid Probate

May 8, 2024/in carollawsonesq, carollawsonpa, carollawsonpesq, Elder, Estate Planning, Probate, Will, Wills/by Carol A. Lawson, Esq.

Probate is a legal process overseen by the court where all assets are gathered, debts are settled, and the remaining estate is distributed to heirs and beneficiaries. While probate serves its purpose, it comes with certain drawbacks that can be avoided with proper estate planning.

One significant disadvantage of probate is its cost. In Florida, attorneys statutory fee is 3% of the estate’s value, more if there is complex litigation. For instance, in a $600,000 estate, attorney fees would amount to $18,000, reducing the inheritance for intended beneficiaries under the will or heirs at law in an intestate estate.

Additionally, probate proceedings can be time-consuming, taking 12 months to 24 months to complete, and even longer if complexities or litigation arise. During this period, assets are typically frozen, causing delays in distribution. In contrast, avoiding probate allows for quicker and smoother asset distribution.

Moreover, since probate proceedings are public record, privacy is compromised, and creditors become aware of estate details. Those prioritizing privacy may find avoiding probate essential.

Contrary to a common misconception, having a will doesn’t exempt an estate from probate. A will alone cannot bypass probate. A will must be probated and filed with the Court.

However, there are strategies to avoid probate in Florida:

Establishing a trust, such as a revocable trust, tailored to individual circumstances and goals.
Designating beneficiaries contractually, as seen in life insurance policies or retirement accounts- POD or TOD account designations.
Transferring assets through deeds, like an enhanced life estate deed (commonly known as a ladybird deed), which allows lifetime ownership with a remainder interest for named beneficiaries.
Holding property jointly with rights of survivorship, where ownership automatically transfers to the surviving owner upon the other owner’s death.
With the guidance of an experienced attorney, estate planning can be structured to ensure assets pass smoothly and swiftly to beneficiaries, bypassing the probate process altogether. Call our office to schedule a consultation.