Clients often tell me that they want a Will in order to avoid probate. What is probate and why are people so eager to avoid it?
 
Probate is a legal process by which a person’s assets are handled after death. Sometimes, a probate proceeding is simple and comes with very little difficulty for the people involved. However, when there are multiple beneficiaries, or arguments over how the estate should be administered, this process can become time-consuming, complicated, and very costly.
 
Let’s look at some examples of challenging probate situations and how better planning might have helped each situation turn out better. These stories are loosely based on real client experiences. However, for confidentiality’s sake, I’ve kept them as general as possible.

​Siblings… friends or foes?
Here are contrasting cases of two siblings trying to administer a parent’s estate. In both cases, the parent died without a Last Will. There were multiple real properties involved and the only beneficiaries were the two siblings.
 
In one case, the siblings were on very good terms. They were in agreement on which sibling should be the Personal Representative (PR) and the sibling who was appointed PR was good about keeping the other sibling informed on the status of the case. They attended all client meetings together and generally worked together to get all the work done, including in getting property appraisals, holding estate sales, gathering assets, and finalizing taxes. By working together, they were able to administer their parent’s estate easily and in under a year.
 
In contrast, the other two siblings were appointed as joint PRs to administer the estate. Almost immediately, disagreements between the two siblings halted administration and left the estate stagnant for almost a year. Upon threat of impending closure of the estate, one sibling attempted to get things moving again.
 
Disagreements over the value of the real properties involved led to each sibling obtaining individual, multiple appraisals of the properties each varying significantly from each other. By delaying in working together or finding a compromise, the properties fell into disrepair and the value continued to depreciate until they ended up selling for much less than they would have. Eventually, they were able to complete the process, but sadly without mending the relationship between them.
 
How could this situation turned out differently? Even with the siblings who were able to agree on everything, if their parents had prepared a Last Will, they could have left precise instructions on which sibling should administer the estate, how property would be divided between the heirs, and even, how disagreements should be settled if they arise.

​Minor Children, Major Obstacles
There is a common misconception that when a person dies without a Will, their spouse will inherit all their property automatically. Unfortunately, this is just not true. Any property that a husband and wife own jointly will indeed pass outright to the surviving spouse. However, if one spouse owns property individually, with no beneficiaries named, that property could end up being subject to probate.
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A man in Arkansas died very unexpectedly in a car accident, leaving behind his wife, and two very young children. Unfortunately, the couple’s home, a few accounts and some other properties were solely in the husband’s name. Because the man did not have a Will, Arkansas law dictated that his assets, would be distributed one-third (1/3) to his surviving spouse, and two-thirds (2/3) to his two children. This meant that his two children, both younger than ten, were suddenly entitled to receive over $100,000 as an inheritance each.
 
To avoid this type of situation, and to ensure that any inheritance left for minor children is protected for their benefit, it’s important to have an estate plan. Utilizing an estate plan is the best way to make sure your wishes actually happen and distribution of your assets isn’t left to state law.

Update! Update! Update!
So, you have a Last Will and Testament! Great! When was the last time it was reviewed and updated? I met with a woman who knew her time was ending. As she struggled to communicate with me from her hospital bed, I felt her pain, and I wished that thoughts of updating her Will wasn’t what she was forced to focus on in her last moments. Her will was over thirty years old. Her nominated personal representatives had predeceased her. Of her four children, only one was surviving, and there were no grandchildren. All she wanted was to update her will to leave everything to her one surviving son. I met with her on a Monday afternoon, prepared the documents, and returned to the hospital the following morning. Unfortunately, she was not conscious when I returned, and she died later that same day without signing the new documents.
 
Having an up-to-date estate plan is crucial. The general recommendation is that an estate plan be reviewed every 5-7 years. All sorts of events in life can trigger the need for an estate plan update: deaths, births, selling property, buying property, sickness, divorce, marriages, the list goes on. If you have an estate plan, and if it’s been more than 5 years since you reviewed it to make sure it still works for your situation, meet with an estate planner today! Don’t wait until it’s a critical situation and you need the documents tomorrow.
 
These are just a few of many stories in which the probate situations caused heartache, presented challenges, and could have gone smoother. For more information about the probate process and how to avoid it, contact the office today!

In a recent interview featured in the Senior Times, I had the pleasure of connecting with Ryan Miller from Senior Care Partners P.A.C.E., to explore the world of Wills & Trusts.

Our conversation delved deep into the essence of estate planning. By sharing personal anecdotes and professional insights, we highlighted the impact these important decisions can have on individuals and their families.

Together, Ryan and I discussed the complexities of estate planning, exploring the differences between Wills and Trusts and addressing common misconceptions and accessibility concerns. During our exchange, we emphasized the importance of personalized strategies and professional guidance in safeguarding one's legacy.

I want to extend my gratitude to Ryan Miller for sharing this important information and allowing me to share insights on a topic that impacts us all. Read the full interview in the Senior Times and gain a deeper understanding of Wills & Trusts.

For more information on Senior Care Partners P.A.C.E. and the important services they offer senior adults in our area, visit their website here.