When one of your financially savvy friends tells you get your estate planning together, you will often hear the line “You don’t want your assets to get stuck in probate!” wielded at the end of the conversation as though it were impending a disease. Why do finance guys use the word “probate” in the same tone that is used to warn of salmonella poisoning risks?
Well, there are three reason: your beneficiaries have to wait longer for the money, they have to pay thousands of dollars in expenses to go through the probate process, and they open up parts of their financial life to the general public.
Time Lag: If you are pro-active about your estate planning, you can take advantage of things like payable on death accounts that enable the beneficiary to immediately receive assets after your death. The average estate takes approximately 14 months to go through probate. … Read the rest of this article!