Probate refers to the process of proving a will in a court of law. The aim of this process is to ensure that the decedent’s assets are passed down to the rightful heirs and beneficiaries. It does not matter if there is a will in place or not, the probate process is almost inevitable for larger estates unless the assets are in a trust.
Any legal business regarding the probate process is carried out in a probate court. These courts exclusively handle matters related to estates. The probate process can take a really long time, and it is usually better to avoid it.
However, avoiding probate requires a person to take some steps before their demise to ensure that their loved ones do not face difficulties later on. However, if that ship has sailed, and there are multiple beneficiaries to an estate, it will be a good idea to consider getting a probate loan.
Probate loans are given out by lenders to a probate administrator or a beneficiary in order for them to buy out co-beneficiaries. These loans are often secured against the estate.
Thus, to secure such a loan, a probate administrator has to get the permission of all the beneficiaries that have claims to the estate. More often than not, beneficiaries are often willing to grant their permission as probate loans speed up the whole process of asset distribution.
All About the Probate Process
If there is a will in place, then the court appoints an executor of the estate to represent it throughout the probate process. If there is no will, then there is usually a probate administrator appointed by the court. The duties of both are quite similar in nature. They initiate the probate process by getting a death certificate to prove that the decedent is actually dead. Then, they petition the court to become the executor or administrator, whichever is applicable in their case.
The probate administrator or executor also has to identify all the assets and notify the beneficiaries. It is also their duty to pay off any taxes, debts, or other expenses related to the estate. However, they don’t have to pay anything out of their own pocket unless of course, they are themselves one of the beneficiaries of the estate. It is also the duty of the probate administrator to distribute the assets, and thus, they are the ones who have to secure a probate loan, if at all.
The probate process can be really complex and lengthy. For small estates, it may only take up to two or three months for the whole matter to be settled. However, for bigger estates, the probate process can last for several years.
If the will is contested or there are additional lawsuits by third parties, then the process can be delayed even further. Thus, it’s better to take necessary steps beforehand so that one can avoid this process entirely. You can avoid the probate process by taking the following steps:
- Place your assets in a trust.
- Set up transfer-on-death accounts.
- Get a transfer-on-death deed
- Life insurance death benefit.
Has the Pandemic Affected the Probate Process?
The probate process is as it is quite lengthy and complex. However, the pandemic has made matters worse. Due to the pandemic, solicitors are facing delays in obtaining the grant of probate. The cause behind this delay is the shifting of the whole process from offline to online. The software that is in use in probate registries is not up to the task and is causing unnecessary delays.
Moreover, due to the increased number of deaths during the pandemic, there has been a hike in the number of probate cases. This is causing further delays in probate courts.
The filing process has also impacted the whole process of probate as it is not exactly ‘user-friendly’. Electronic filing is complicated and lengthy, and you will definitely require the help of an attorney for it.
Usually, there are no hearings in probate cases. However, there are exceptions. Judicial systems of most countries have adopted the online mode of video conferencing. Probate courts are no exceptions.
However, online hearings are usually delayed and take longer due to technical issues. Moreover, with social distancing rules in place, clients are having trouble meeting with their attorneys too.
All in all, the pandemic has made the probate process even worse. Thus, in today’s atmosphere, it is better that you take all the necessary steps to avoid the probate process entirely. You can consult an attorney to get details on the same.