Wills must be probated in order to ensure the document is legally valid and that heirs receive inheritance property. When a person dies their assets are transferred to probate. Assets aren’t physically moved to a new location. Instead, financial assets cannot be accessed and personal property cannot be distributed until the estate undergoes the probate process.

Probated estates are managed by a probate executor. This person is designated in the decedent’s Last Will. If the decedent dies intestate (without a Will) a probate judge will appoint someone to this position. In most cases, the executor is a family member or close friend. If no one accepts the duties of probate administrator, the judge will appoint an outsider to oversee the estate.

The probate administrator must engage in multiple duties. The decedent’s assets must be organized, inventoried and appraised. Outstanding debts and taxes must be paid. A variety of forms must be filed to obtain release of funds from bank accounts, investment portfolios, and life insurance policies.

If the decedent assigned payable on death or transfer on death beneficiaries, the executor must obtain date-of-death values and submit tax forms to the county tax assessor’s office. If the decedent does not owe taxes, the assessor will sign off on the forms and funds can be distributed within 30 to 60 days. If the decedent owed taxes, they must be paid before beneficiaries can receive their distribution of funds.

The probate process can be as short as three months or as long as three years. Much depends on the workload of the probate courts, size of the estate, complexity of asset transfer such as real estate or businesses, and how well the family gets along.

If a family member feels slighted and elect to contest the decedent’s Will, probate can drag on for years. Contesting the will can cost the estate several thousand dollars and in many cases will bankrupt the estate, leaving nothing for heirs.

Few people can administer an estate without assistance from a probate lawyer or estate planner. Estates valued under $50,000 are considered small estates. In some states, small estates are exempt from the probate process. Regardless of the size, estate executors are responsible for filing a final tax return on behalf of the decedent within nine months from the date of death.

Managing probated estates can be a difficult task. Although probate executors are compensated for their services, the duties can be overwhelming. This is particularly true when the executor is a family member grieving the loss of their loved one.

Probate experts state less than 20-percent of heirs receive inheritance property. By the time attorneys, creditors and probate executors are paid, the estate is insolvent. Many times, assets must be sold to pay creditor debts or funeral expenses.

Probate can be avoided by taking action to protect assets and ensure heirs receive what is rightfully theirs.

Individuals who have bank accounts can establish payable on death (POD) beneficiaries. Although funds are normally transferred to the surviving spouse, it is a good idea to submit POD forms to prevent any problems. Single account holders can designate multiple beneficiaries and state the percentage of the funds each should receive.

Individuals who hold individual retirement accounts and 401k accounts, annuities, and life insurance policies can establish transfer on death (TOD) beneficiaries. Both POD and TOD proceeds are exempt from the probate process.

Real estate can avoid being probated by establishing rights of survivorship. Also referred to as Joint Tenancy, Tenancy in Common and Tenants in Common, survivorship rights allow real estate to easily transfer to named beneficiaries.

Trusts can keep the entire estate out of probate. A variety of trusts exist and each can be customized to suit the individual’s needs. Two of the most common trusts are living trust and irrevocable life insurance trusts. The Will is placed inside the trust and all assets are exempt from probate and inheritance taxation.

One of the best gifts you can give your loved ones is to engage in estate planning to safeguard assets against probate. Most probate lawyers charge a nominal fee to execute a last will. Many offer complimentary consultations to determine the best methods of asset protection.

Death is always a difficult process on those left behind. Don’t add to your loved ones grief by leaving a financial mess for them to sort through. Take action now to keep assets out of probate and make certain your intended beneficiaries receive the inheritance you want them to have.