Why You Should Try To Avoid Going to Probate Court

If you’ve had a loved one recently pass away, you’re probably dealing with the process of settling their estate as well as probate court.

Probate court is a system that oversees the management and proper distribution of a person's estate according to their wishes. While this might seem straightforward, it’s common for executors and family members to experience issues with probate.

In fact, it's a complicated process that can take months, sometimes even years, to resolve. Fortunately, by knowing why you should try to avoid going to probate court now, you can set your loved ones up for success in the future.

Here’s what you need to know.

#1: It's Time-Consuming

As mentioned, probate court can be a drawn-out process, as it becomes the court’s responsibility to oversee the distribution of assets, paying off of debts, and resolving of any disputes. 

This can take months, if not years to finalize. But there are ways to reduce your chances of needing this interference. You could establish a trust fund instead. 

You should take advantage of several benefits of trust funds, including bypassing probate court entirely. This is because the assets in the trust are already settled.

#2: It's Expensive

Probate court also comes with fees and expenses that can add up quickly, especially if something happens to prolong the process, such as a family dispute. 

These expenses come from the legal fees, court costs, and other miscellaneous expenses that arise during the probate process. In contrast, setting up a trust only involves the one-time legal fees for drawing up the necessary paperwork.

#3: It's Public

Probate court proceedings are usually open to the public, which means anyone can access your family's personal and financial information. 

This can be a significant invasion of privacy for many families. To avoid this scenario, settle your affairs privately beforehand in the form of a will or trust.

#4: It's Complicated

Another reason why you should try to avoid probate court for your estate is the complex nature of the proceedings. There’s a lot of paperwork involved with probate court proceedings, as well as strict deadlines that executors must meet. 

This can be difficult for family members who may not be savvy with legal jargon or may not have the time and resources necessary to navigate the court system. Detailed wills and trusts leave less room for complications since everything is already organized.

#5: It's Not Personalized

Above all, the court has a set of specific distribution rules, meaning that executors won’t be able to personalize where certain items go on their own. 

As a result, the probate court system can be an impersonal process that doesn't account for the departed loved one’s unique circumstances or wishes. By establishing a trust fund, you have the flexibility to create a customized estate plan that meets your specific needs.

Final Thoughts

The more time and effort you put into your estate plan, the smoother it will be to settle your estate for your loved ones. Probate court is no fun for anyone, and it’s the last thing your family wants to contend with when grieving your passing. 

Speak to a reputable attorney to establish a trust fund and protect your family's future.

How to Manage Your Finances and Trust Funds Like a Professional

Research from the reputable financial giant Bankrate indicates that significantly more Americans drink coffee on a daily basis than own stock market investments, 61% to 48%, respectively. 

About one-quarter of United States citizens are fortunate enough to inherit money through trust funds. As indicated, not everybody can afford to invest money, meaning those who can and do stow away money for themselves and others are of fortunate financial position. 

It's easy for people to ruin their finances and trust funds, causing financial ruin and worry in their own, and others', lives. Here are several tips for managing personal finances, just as a professional would.

Focus on Retirement Accounts Early On

Some retirement accounts are matched dollar-for-dollar by employers. Investing in these accounts, most notably the 401(k) plan, earns extra income by simply saving it in a retirement account. 

These plans should be matched until employer's maximum contribution amounts are reached. While such investments don't earn interest over time, unlike stocks, bonds, and mutual funds, employer matching is nearly always more valuable for your interim and long-term financial position. 



If your employer offers multiple retirement accounts, invest in them until employers won't fund any further - it's unarguably worthwhile.

Decide if Trust Funds are Worth Using

Individuals with little disposable income shouldn't stash away assets into trust funds, unless they're 100 percent, positively, absolutely sure that money wouldn't better serve any purposes in the owner's lifetime. 

Some companies, such as Home State Bank, know that trust funds can provide lifetimes of financial support for beneficiaries that inherit them. However, the most important aspect of considering a trust fund is timing. 

If you have a high income, with mountains of disposable income laying around, trust funds can reduce which tax bracket you're in. Situations not benefiting significantly from such a tax break aren't ideal for trust funds.

Don't Invest in Single Stocks

Stock performance depends directly on that company's financial performance. As such, purchasing one, two, or five stocks isn't a good idea. 

Rather, consider investing in shared, fully-diversified mutual funds, but only if retirement accounts are fully funded and plenty of low-risk assets are owned.

State Income Tax Matters

Everyone in America must be federal taxes. However, those in certain states, like Florida or Tennessee, aren't subject to state income taxes. 

These rates can be as high as California's 13-plus percent. As such, move to states without income taxes as soon as possible.

Money is an integral part of life. Unfortunately, few people don't know how to properly manage their finances. 

Don't get into trust funds unless you're loaded, aim to diversify stock investments - that's if you're set on low-risk investments - and make sure to create and closely adhere to budgets and plans.