Probate refers to how estate gets organized officially under the supervision of the court. If you have a Will or you are thinking of preparing one then you must understand the process of probate to know how it works.
The probate process is neither cheap nor quick. It can take several months and can go on for years after you have passed on. If you are Michigan resident then you must have an explanation of how probate works in Michigan to avoid any issues related to estate holding among heirs.
The entire process is controlled by the States Probate Court. There are various steps in the probate process that are discussed below.
- The first step is to value the estate of a deceased person that establishes whether or not you will require a grant of representation to maintain proceedings. This will be ascertained after discussion with the deceased’s financial organizations and the deceased’s banks.
- The second step that you will need to fill up an application form in addition to an inheritance tax form. The nature of the inheritance tax form you require to complete will be based on your deceased person that whether or not the deceased’s estate owes inheritance tax.Inheritance will is the major aspect which many people do not pay attention to.
- The completed related grant of representation and inheritance tax forms will then be sent to the Probate Registry.
- At this stage, you will necessitate paying the inheritance tax which is unpaid as stipulated. This will be assessed after your inheritance tax form is submitted in step four.
- After that, you must go for your local probate office to swear a promise that will verify you are the representative of the deceased’s interests.Check out this link to get all best answers for your queries.
- Once all the above steps have been completed you will need to wait for the arrival of your grant of representation which will be sent by post.
- Now it is your duty to pay any amount overdue that is outstanding in the deceased’s name and, once this has been finished, you are free to share out the deceased’s estate as you see fit.
It is said that the reason for having such a lengthy and costly process is to prevent fraud in transferring property and to protect inheritors by promptly resolving claims creditors have on a deceased person’s property. The reality is that most property is transferred within a close circle of family and friends and very few states face potential fraud or creditor claims. Most people have no need for probate’s so-called benefits. Probate is often categorized as an expensive time-wasting process.
As an alternative to probate, there are many legal methods to avoid probate entirely. Because bequeathing property in a will usually result in probate, probate-avoidance strategies should be implemented. The most common probate-avoidance methods are:
- Revocable living trust
- Joint tenancy and tenancy by the entirety
- Payable-on-death designations
- Life insurance
- Gift Planning
Keep in mind that these probate-avoidance methods can and should be used together as part of an estate plan.
You should already have a pretty good idea of what your estate is worth so that you can make intelligent choices for your estate plan.
Remember that what is right for one person may not be right for another.
Obtain a plan specific to your situation and needs by visiting your attorney. Make sure that you take the necessary steps today so that in the future you make a difficult time easier for your loved ones.