Oklahoma Probate Guide

Probate is notoriously challenging and quite a hassle, consuming your time and, more importantly, mental and emotional energy at times when those valuable resources are far better spent elsewhere, namely mourning the loss of a loved one. If you’ve never had much of a run-in with probate before, you’ll need to juggle validating the deceased’s will, settling their debts, and distributing their remaining assets. This is difficult to do in and of itself, not even considering the other responsibilities you’ll likely have around the loss of a loved one.

Although probate undoubtedly serves a distinct legal purpose, it is fraught with complications, delays, and costs. Solid estate planning in advance can help dramatically cut down on these major inconveniences and other probate-related issues you’d otherwise experience. Terrell Monks, probate lawyer at Oklahoma Estate Attorneys, PLLC. in Edmond, OK, will explore them and various strategies you can use to streamline the probate process and ensure a smooth transition.

Understanding Probate And Its Challenges

Probate is a court-supervised process that authenticates a will and oversees the administration of an estate. This involves identifying and inventorying the estate’s assets, paying off any debts and tax liabilities, and distributing the remaining assets in accordance with the will. In instances where there is no will, assets are distributed in accordance with Oklahoma law.

Probate gets a bad rap, and for many reasons, rightly so. Yet, it is ultimately meant to protect creditors and ensure assets are distributed properly. Of the many challenges people face as part of dealing with probate, the most common include disputes arising among heirs, creditors’ claims, and administrative delays. These issues make a difficult time even more difficult and distract from the most important thing—processing and working through grief. Partnering with an estate planning attorney who can help guide you toward the strategy that may work best in your situation is invaluable.

Strategies For Avoiding Or Minimizing Probate

There are some things you can do to help ensure your loved ones don’t have to deal with probate, and if they do, they don’t experience any major issues.

Establish A Trust

Creating a trust is a sure way to minimize your exposure to the probate court. How? Trusts are legal entities that hold and manage assets on behalf of beneficiaries. This means that when an asset is placed in a trust, it is no longer considered part of the estate. As a result, it does not have to go through probate.

There are several types of trusts, but the two primary types are revocable and irrevocable trusts. Revocable trusts allow grantors to maintain control and make changes during their lifetime. Irrevocable do not but have the tradeoff of various tax benefits and protections to assets.

Since these can quickly get fairly complicated, it’s worth it to seek out the help of a trust attorney. Other similar documents can really help you avoid probate. To explore these other options, it’s alo worth consulting with a professional like a wills attorney who can guide you in the right direction.

Consider Join Ownership

Holding assets in joint ownership with rights of survivorship can also help you steer clear of probate. When your joint owner passes away, your property will automatically transfer to your sole ownership without needing to deal with the probate court at all.

This approach is widely used for real estate, bank accounts, and other high-value assets. Beware, though—there are some tradeoffs such as gift taxes. Complications may also arise if you were to become incapacitated.

Designate Beneficiaries

Certain asset types, such as life insurance policies, retirement accounts, and payable-on-death accounts, allow you to name beneficiaries who will receive the assets in question directly upon your passing. These designations must be up to date at the time of your death in order for them to be able to carry out what you want them to.

Gift Assets

Another alternative would be to reduce the size of your estate. Doing so would mean your estate would fail to meet the value threshold, thus avoiding probate entirely on the basis of being considered a small estate.

Additionally, the IRS allows gifting without incurring any tax liability on assets for up to a certain amount of value per year. Your loved ones would have the added benefit of enjoying experiencing your direct generosity while you’re still alive. They’d also not have to worry nearly as much about estate taxes.

Effective estate planning is key to minimizing your probate liability and ensuring a smooth transition for your loved ones in the wake of your passing. These strategies, with the help of a procedure of probate lawyer, will help you map out a plan that addresses your unique needs.