Most of us know that we should plan our estates. One main reason for planning is to avoid the probate courts in case of incapacity or at death. The California probate court administration can be a costly, time consuming and very public process. Most people generally prefer to handle their family and financial affairs privately with clear written instructions about their wishes rather than go through the court system and have the courts make those decisions for them. However, California probate courts seem to be more busy than ever with many uncontested cases because of improper or no planning.

Probate is more common than you think. Death is an inevitable fact of life, yet many people do not have an end-of-life plan to take care of loved ones and avoid unnecessary delays, expenses and court proceedings. According to a recent study, the majority of U.S. adults don’t have a will. When a celebrity dies without a proper estate plan, the general reaction is one of shock or disbelief that they did not properly plan their estates given their wealth. Through the probate process, private details of their estates and their lives become available to the public. We know so much about the estates of celebrities like Aretha Franklin or Prince because the probate courts were involved.

Probate Process. The probate estate administration is the process of transferring the decedent’s assets to the persons or institutions entitled to receive them. The main functions of estate administration are: (1) collection and valuation of assets, (2) payment of debts and taxes; and, (3) distribution of the estate to the heirs (if there is no will) or to the named devisees (if there is a will). If there is no will, the probate judge determines who are the heirs according to the intestacy laws of the state. Some of the costs related to a probate case include the court costs, publication costs, attorney fees and executor/administrator fees (both fees are set by statute), and the probate referee fees for the appraisal of probate assets.

Plan Now. Planning your estate is a relatively easy process with the help of a qualified advisor. Creating an estate plan with the proper documentation should not be put off until later. A simple way to help avoid the probate court process, and also keep things more private, is to set up a living revocable trust as part of an estate plan. By putting off the planning of our estates, we are exposing our loved ones to unnecessary and avoidable burdens and challenges. It is inevitable that every person, celebrity or not, will die one day. So, we should set up an end-of-life plan for the benefit of our children, family, and loved ones.

Information in this article is intended for educational purposes only. It is not, nor should it be considered as legal or tax advice, and should not be relied upon as such. Copyright © Gita K. Nassiri