It is important to know whether a probate is required following the death of an individual. The probate process can be long and expensive, so it is important to know if it is necessary. The longer the duration, the higher the cost.
Probating an estate without a will can be more costly than probating one with a valid will. However, the time and cost required of each are still high. Also, since the proceedings of a probate court are publicly recorded, avoiding probate would ensure that all settlements are done privately.
Different states have different laws concerning probate and whether probate is required after the death of a testator. Some states have a specified estate value, which requires probate. For example, probate laws in Texas hold that if the value of the estate is more than $75,000, then probate is required.
Small estates can avoid probate by using an affidavit to claim the deceased person’s assets. If the deceased person’s debts exceed their assets, then probate may not be necessary.
Contractual terms can initiate beneficiaries, who can then bypass probate for some assets. Pension plans, life insurance proceeds, 401k plans, medical savings accounts, and individual retirement accounts (IRA) that have designated beneficiaries will not need to go through probate. Assets jointly owned with a right of survivorship bypass the probate process.
A trust is another popular way to bypass probate. It can be prudent to minimize costs associated with the probate process. Court fees, professional service hours, and administration costs can all be accumulated expenses. Efficiently distributing assets and quickly moving through the probate process is one of the most common ways to have an easily authenticated will.