What is probate and how can it affect your estate?
It is quintessential for people to accumulate wealth during their lifespan through hard work and proper management of finances. This consists of personal belongings, bank accounts, land, real estate properties, different sorts of investments, furnishings and even a considerable amount of collectibles.
Hence, a will is constructed to make sure that these assets are passed on to your loved ones that will surely benefit them after your death. However, the intended beneficiaries are supposed to wait for some time until the complete probate process takes place.
Are you willing to know how the process of probate in WA takes place and its significance on your estate? Read out to know its impact and how important it is to keep the will up to date.
What is probate?
The properties of the deceased are frozen where nobody can access them without a probate which is a legal process of validating the will by granting the authority to the executor or personal representative to perform the wishes outlined in the will.
According to PB Ritz a Sydney Probate Lawyer a ‘grant of probate’ is issued by the Supreme Court registrar to certify that the will is lawfully binding irrespective of whether it was handwritten or made online.
This process allows the administrator of your assets to efficiently pay all the creditors and estate taxes and distribute the remaining estate among the beneficiaries.
What kinds of property are subject to probate?
Not each and every asset of the deceased has to go through the probate process. Some of these assets are:Certain retirement accounts where the beneficiaries are listed.
Life insurance
Properties that are a part of a trust such as living trust.
Whereas, there are some assets that always are subject to the probate process:
Properties that consist of land and houses.
Jointly owned assets that don’t have a surviving owner.
Assets that don’t have an assigned beneficiary.
The probate process affects your estate in a number of ways like the named executor, access to the assets and the ways of distribution. Therefore, it is important to analyze its impact on your estate while you’re alive so that you can understand the complications that may arise later in the process.
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Recognizes the executor:
The executor is supposed to file the grant within a few days after the death of the person on who’s name the will is written. Following which the executor named in the will gets approved by the grant of probate.
This allows the executor to perform certain duties according to the wishes of the deceased with regards to the laws pertaining to the will.
This requires the executor to perform tasks like locating and organizing the estate documents, help the family members to obtain the governmental benefits and manage the asset inventory.
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Provides access to assets:
The executor can ask the financial institutions such as banks and other trading platforms to unfreeze the assets and provide the funds under their name after receiving the grant from Supreme Court registrar.
These grants also work in cases where the properties are completely owned by the dead person or properties having a common tenancy status. A grant of probate is also required for disbursement in case of higher premium insurance claims.
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Allows sale or transfer:
The executors are supposed to determine whether the estate left behind by the deceased is enough to pay all the creditors, estate taxes and settle the debts before they could distribute the assets. If not, then the executor is allowed to sell the real property or other assets to pay the estate taxes by the grant of law.
Moreover, the grant also allows the transfer of land and other real estate properties like heritage listed homes, shares and other investments to the illegal heirs and beneficiaries.
Issues that arise during the probate process:
The process of probate is required to start immediately as if it is filed after or more than six months then the executor would have to submit an affidavit stating the reason for delay. Moreover, an additional affidavit of delay might be asked in certain states.
Even though, the probate is approved within two weeks, still the grant can be delayed in case of issues such as lack of witness, damages, it doesn’t fulfil the legal requirements, someone contests the will, a need to file additional probates if the deceased has properties in some other state.
These problems might lead to tensions and financial constraints among the family members as it would take a considerable amount of time to resolve.
Therefore, to ensure that the probate process doesn’t extend the individuals should keep the will up to date. The will should also be kept safe while informing the family members of its whereabouts so that there are no further complications.
Conclusion:
It is extremely important to understand the probate process so that the individuals can assess the issue that may arise and find ways to solve them and hence, it is advisable to look for probate consultants who would ensure that the process is carried out easily and efficiently without any delay.
Daily Bulletin
