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THE PROBATE PROCESS: THINGS TO CONSIDER
www.pwfpartners.com
Contact Details Duncan Eng 2105 S. Bascom Avenue Suite 300 Campbell, CA 95008 (O): 408.879.4217 (F): 408.559.1620 [email protected]
Have you created estate planning documents in which you had to name an executor or trustee for your estate assets? Has someone ever asked you if you’d be willing to help wrap-up their estate affairs at death? My clients ask me lots of questions about probate and whether it should be avoided. Here are a few of the most common questions and answers:
Question: What is probate and what are its drawbacks? Answer: Probate is the court supervision of the transfer of assets at the owner’s death.
Edward C. Rusnak 3000 Executive Parkway Suite 400 P.O. Box 5154 San Ramon, CA 94583 (O): 925.659.0372 (F): 925.275.0999 [email protected]
Jeff Gustafson 2105 S. Bascom Avenue Suite 300 Campbell, CA 95008 (O): 408.879.4224 (F): 408.559.1620 [email protected]
While each state has its own rules about how probate works, those rules are similar with regard to the drawbacks of the probate process: o It’s public. Since probate is a court procedure, the records are available to anyone who asks. o It’s structured, and it takes a while to finish. Since probate is a court procedure, there are rules and forms for everything. Also, in most jurisdictions for most estates, the process takes months to run from start to finish. o It can be expensive.
Question: If a client has a will, is probate still necessary at death? Answer: Yes, usually. When a person dies leaving personally owned assets
and a will, the probate process includes procedures for validating the will and making sure the will’s rules are followed. The executor is responsible for guiding the estate assets through the probate process where the decedent had a valid will. Question: Is probate necessary for all assets owned by a decedent? Answer: No. For many assets, such as qualified plans, annuities and life insurance, the owner has the ability to name a beneficiary. The beneficiary designation controls who is entitled to the account at the death of the owner. The owner’s will is trumped by the beneficiary designation. Likewise, certain kinds of assets may allow the account owner to create pay on death (POD) or transfer on death (TOD) designations. Where such designations are available and where the decedent named a designee, transfer at death would bypass probate. Finally, it is possible for the ownership titling of an asset to allow it to avoid probate. For example, an asset titled jointly with right of survivorship will be re-allocated to the surviving owners when one of them dies. Also, an asset that is titled leaving a life estate to the decedent will automatically transfer to the owner of the remainder interest at the life tenant’s death. These kinds of transfers generally avoid probate. Do you have questions about probate? Let me answer them for you.
AS ALWAYS, PLEASE FEEL FREE TO CALL TO DISCUSS THESE OR OTHER FINANCIAL SECURITY ISSUES OF CONCERN.
Any discussion pertaining to taxes in this communication (including attachments) may be part of a promotion or marketing effort. As provided for in government regulations, advice (if any) related to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue code. Individuals should seek advice based on their own particular circumstances from an independent tax advisor.
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Duncan Eng is a registered representative of Lincoln Financial Advisors Corp.
›
“Securities offered through Lincoln Financial Advisors Corp., a broker/dealer. Member SIPC.
›
“Investment advisory services offered through Lincoln Financial Advisors or Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a registered investment advisor.”
›
Insurance offered through Lincoln affiliates and other fine companies.”
›
“The content of this material was provided to you by Lincoln Financial Advisors for its representatives and their clients and is for informational purposes only. We do not offer legal or tax advice. Seek the advice of a tax advisor prior to making a tax-related insurance/investment transaction.”
› ›
CRN# 201306-2081696
THE PROBATE PROCESS: THINGS TO CONSIDER
www.pwfpartners.com
Contact Details Duncan Eng 2105 S. Bascom Avenue Suite 300 Campbell, CA 95008 (O): 408.879.4217 (F): 408.559.1620 [email protected]
Have you created estate planning documents in which you had to name an executor or trustee for your estate assets? Has someone ever asked you if you’d be willing to help wrap-up their estate affairs at death? My clients ask me lots of questions about probate and whether it should be avoided. Here are a few of the most common questions and answers:
Question: What is probate and what are its drawbacks? Answer: Probate is the court supervision of the transfer of assets at the owner’s death.
Edward C. Rusnak 3000 Executive Parkway Suite 400 P.O. Box 5154 San Ramon, CA 94583 (O): 925.659.0372 (F): 925.275.0999 [email protected]
Jeff Gustafson 2105 S. Bascom Avenue Suite 300 Campbell, CA 95008 (O): 408.879.4224 (F): 408.559.1620 [email protected]
While each state has its own rules about how probate works, those rules are similar with regard to the drawbacks of the probate process: o It’s public. Since probate is a court procedure, the records are available to anyone who asks. o It’s structured, and it takes a while to finish. Since probate is a court procedure, there are rules and forms for everything. Also, in most jurisdictions for most estates, the process takes months to run from start to finish. o It can be expensive.
Question: If a client has a will, is probate still necessary at death? Answer: Yes, usually. When a person dies leaving personally owned assets
and a will, the probate process includes procedures for validating the will and making sure the will’s rules are followed. The executor is responsible for guiding the estate assets through the probate process where the decedent had a valid will. Question: Is probate necessary for all assets owned by a decedent? Answer: No. For many assets, such as qualified plans, annuities and life insurance, the owner has the ability to name a beneficiary. The beneficiary designation controls who is entitled to the account at the death of the owner. The owner’s will is trumped by the beneficiary designation. Likewise, certain kinds of assets may allow the account owner to create pay on death (POD) or transfer on death (TOD) designations. Where such designations are available and where the decedent named a designee, transfer at death would bypass probate. Finally, it is possible for the ownership titling of an asset to allow it to avoid probate. For example, an asset titled jointly with right of survivorship will be re-allocated to the surviving owners when one of them dies. Also, an asset that is titled leaving a life estate to the decedent will automatically transfer to the owner of the remainder interest at the life tenant’s death. These kinds of transfers generally avoid probate. Do you have questions about probate? Let me answer them for you.
AS ALWAYS, PLEASE FEEL FREE TO CALL TO DISCUSS THESE OR OTHER FINANCIAL SECURITY ISSUES OF CONCERN.
Any discussion pertaining to taxes in this communication (including attachments) may be part of a promotion or marketing effort. As provided for in government regulations, advice (if any) related to federal taxes that is contained in this communication (including attachments) is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties under the Internal Revenue code. Individuals should seek advice based on their own particular circumstances from an independent tax advisor.
›
Duncan Eng is a registered representative of Lincoln Financial Advisors Corp.
›
“Securities offered through Lincoln Financial Advisors Corp., a broker/dealer. Member SIPC.
›
“Investment advisory services offered through Lincoln Financial Advisors or Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a registered investment advisor.”
›
Insurance offered through Lincoln affiliates and other fine companies.”
›
“The content of this material was provided to you by Lincoln Financial Advisors for its representatives and their clients and is for informational purposes only. We do not offer legal or tax advice. Seek the advice of a tax advisor prior to making a tax-related insurance/investment transaction.”
› ›
CRN# 201306-2081696
