Avoiding probate for estate assets is a good strategy, but there are instances when probate is beneficial to an estate. In general, the purpose of probate is to ensure the following: 

• The settlement of the decedent’s assets.

• To ensure the filing of all tax returns required for the estate and the decedent. 

• Ensure the payment of all debts of the decedent.

• Ensure that all remaining property of the decedent is properly distributed.

In addition, the probate court offers some features in the probate process that are beneficial to an estate.

When Probate is Beneficial to an Estate

In a poorly crafted estate, a formal probate proceeding is likely necessary. However, even if the decedent avoided probate, the executor can still use the probate process for the following reasons:

1. The probate process validates wills. If the validity of a will comes into question, the probate court determines if the will is valid according to state law. Validating the will puts all questions to rest as the process proceeds. For more about valid wills, read the article What Makes a Will Valid.
2. The probate process makes challenges to the estate plan difficult. If an executor anticipates a challenge to the estate plan, then the executor should opt for probate. The probate process limits the legal grounds to challenge an estate. This makes it difficult for a beneficiary to prove their case in probate court. In this instance, it’s important for the executor to know the beneficiaries as mentioned in the article Know your Beneficiaries to anticipate problems.
3. The probate process puts a time limit on creditors making claims on the estate. Once the executor or attorney notifies creditors of the decedent’s death, the creditors have a limited amount of time to make a claim on an estate. If a claim is submitted after the time expires, the estate is no longer obligated to pay the claim. The range of time limits are a few months to a year, depending on state law. Consequently, if the executor decides against using probate, creditors are not limited by time. If a creditor makes a claim years later, the estate has to handle the claim if deemed valid. So, unless the executor is sure that the decedent didn’t have any large debts, the executor should opt for probate.

Conclusion

Considering the useful features that probate offers an estate, probate isn’t that bad. Regardless of the strategy used in the estate plan, probate is beneficial to an estate when the executor anticipates problems from creditors or quarrelsome beneficiaries.

Recommended Reading:

Plan Your Estate– Plan Your Estate will guide you through all the intricacies of estate planning including when to avoid probate and when to use probate.

I’d love to know your thoughts on this article. Let me know in the comments.