A will allows you to prepare for the future by determining what happens to your assets after you pass on. If you're going to undertake this estate planning measure, it's important to understand probate. This is a legal process through which the courts authenticate the document and ensure all debts and taxes on the estate are paid. Find out how it works below.

What Happens During Probate?

When a person passes on, the executor of their will notifies the probate courts. The courts confirm the document's authenticity and review an itemized list of all assets and their value. Creditors are given a chance to step forward and claim any money owed. Then, administrative fees and taxes owed are paid.

Probate has a few drawbacks. First, it takes time, and beneficiaries must wait until the claims period has run before they receive their distribution. Second, a will is a public document, and arguments may arise during probate, allowing people to dispute the will. Finally, probate incurs fees that lowers the value of the estate as a whole.

When Is Probate Needed?

If a person does not have a will, their assets must go through probate in many cases. In this case, the assets are awarded according to state law. This usually means that the assets are given to the closest family members, such as a spouse, children, or parents. If the beneficiaries named in the will are already deceased, state inheritance law likewise determines the next beneficiary.

If the deceased does have a will, any assets solely in the deceased's name must go through probate, but this can be avoided in some instances. A property can be jointly owned, for example, with a “rights of survivorship” stipulation that allows the property to pass directly to the surviving owner if the other one dies.

There are other means of avoiding probate. For example, retirement or bank accounts can be made “payable on death,” which means that when a person passes on, the account is automatically transferred to the named recipient, and probate is not needed. An estate planning attorney can advise on how to minimize the burden of probate and how to avoid probate in many cases.

Pepping, Balk, Kincaid & Olson Ltd. serves residents of Silvis, IL, with knowledgeable estate planning services. Their legal team has over 75 years of combined experience. They pride themselves on the personalized care they give every client. Visit their website to review their practice areas, or request a meeting with an attorney by calling (309) 755-5096.