Probate is the legal process where a deceased individual’s estate is distributed to their designated beneficiaries and/or heirs.  Any debt owed to creditors is also settled.  Property and monies are distributed according to the deceased’s last will and testament or according to state law, if a last will and testament doesn’t exist.

Typically the probate process follows these steps:

1. An administrator of the estate is established by an executor being named through the last will and testament.  If an executor is not named or there is no will, the probate court will appoint an estate administrator.
2. The will is proven in court to be valid and follows state requirements for witnesses, notaries, etc.
3. The property of the deceased is inventoried and held until the probate process has concluded.
4. Properties of the deceased are appraised.
5. Any debt or taxes that the deceased owed are settled.
6. Any remaining assets are distributed as instructed in the deceased’s will or according to state law if there is no will.

Estate planning is the process by which a person or family arranges the transfer of assets in anticipation of death.

Estate planning involved the creation of trusts, powers of attorney, living wills and any other documents used to facilitate and management of one’s property after they pass.

There are many benefits to a having a proper estate plan set up.  Not only will it outline where your assets go after you’ve passed, eliminating headache and possible family disagreements, but it can also minimize taxes taken from your estate.

It is much cheaper and easier to plan ahead than it is to go through probate without a plan in place.