Common Sense Economics

prepared their affairs. Without planning, the distribution of your estate is left to the Probate court. The Reality of Probate What Is Probate? Probate is the court process that: 1. Validates your will. 2. Transfers ownership of your property to heirs. 3. Clears title on assets. Here’s the catch: if you have only a will, your family will still have to go through Probate. And Probate means:

• Delays • Stress • Costs that can drain a significant portion of the estate

Beyond that, our government has created a generational debt burden — meaning taxes, costs, and inefficiencies are being passed down to your children, grandchildren, and future generations. The Pecking Order of Probate When you die without a proper estate plan, here’s who gets paid first: Costs and expenses of administration – court fees, attorney fees, executor fees. Funeral expenses – the cost of burial and related services. Taxes and debts – obligations to the IRS and creditors. All other claims – anyone else owed money. The family – finally, whatever remains goes to your loved ones. Do you see the problem? Your family — the very people you intended to protect — are last in line. By the time the system takes its share, there may be little left to pass on.

83

Made with FlippingBook. PDF to flipbook with ease