Probate is a legal process where you actually file a petition with court. It is almost like filing a lawsuit, except that theoretically it is supposed to be a positive transaction. You file with the court, you ask them for permission to make an accounting on all the assets in the estate and to sell the assets in the estate off. All the beneficiaries of the estate are notified that a probate is in process, and they are also notified of everything that goes on in the probate. When you want to do a major transaction, you go to probate court to get their approval. A probate could be done theoretically around 6-8 months, but most probates sometimes take 1-3 years to be completed. The end of the probate process is a final accounting where you are shown where all the money and all the assets that were taken in have gone or where they are going. It is a nice process for heirs to be able to see this, but it is a tough process for the estate because the cost of a probate can be as much as 2% of the estate for attorney’s fees and as much as 2% of the estate for administrative fees. If you got a larger estate, you do not want to be stuck in a probate with those costs and the time that it takes. You need to think through how you can avoid the probate by setting up a revocable trust and transferring all of your assets into the trust.
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