You’ve surely heard about probate, probably as simply that thing that should be avoided. But what is it and why should it be avoided?
What is Probate?
Probate is, in its essence, the public judicial process by which a court administers the property of a decedent. It consists of a series of filings, court appearances, notices and other proceedings held in the appropriate county superior court. It is different for every state, and for some states it can be relatively quick, but in California it commonly takes more than eight months and, if it has complications, can take years. Whether a decedent has a will (that is, he died “testate”) or has no will at all (he died “intestate”) his estate is still subject to probate.
Which Estates Go Through Probate?
Any estate that has probate assets valued at $184,500 or higher (in 2023) must go through a full probate. That includes the gross value of a house, so the estate of any homeowner whose house is worth more than $184,500 is subject to probate, unless the homeowner takes the appropriate steps to avoid it.
In general, probate should indeed be avoided
Probate is expensive, time-consuming and public. Avoidance of probate is perhaps the most common reason clients say they want a revocable living trust. Using a revocable living trust as part of a complete estate plan can avoid probate and typically reduces the costs and time of winding up the affairs of a decedent.