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Probate

Probate is the term used to describe the court-supervised process, following a person's death, of handing the asset and property disribution towards the dead person's wishes. Here are some responsibilities of the court: proving the authencity of the deceased person's will; appointing someone to handle the deceased person's affairs; identifying and inventorying the deceased person's property; paying debts and taxes; identifying heirs; and distributing the deceased person's property according to the will or if there is no will, according to state law. Formal generally a costly and time-consuming process that is best avoided if possible through a revocable trust of some sort. However, most states nowadays offer simplified probate procedures for estates of relatively small value.

Fast Facts

  • Probate can be avoided by setting up POD (Paid on death) designations on bank accounts and TOD (Transfer on death) on brokerage accounts.
  • Joint Accounts are not an effective way to avoid probate

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