Probate & Trusts FAQs
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Probate is a legal process that occurs after an individual passes away, during which their will is validated, and the distribution of their assets is carried out in accordance with the law. The primary objectives of probate include settling the deceased person's debts, identifying and appraising their assets, and ensuring the lawful transfer of remaining assets to designated heirs or beneficiaries. This process is typically overseen by a court and may involve the appointment of a personal representative to manage the estate affairs. Probate provides a transparent framework for resolving the deceased person's financial matters and ensures that their wishes, as outlined in their will, are carried out effectively, while also addressing any outstanding debts or legal obligations.
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Depending on the size and complexity of an estate, the probate process can take anywhere from six months to possibly longer. The timeline of the process is also greatly impacted by the factor of if the decedent executed a will prior to passing away.
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Having a will doesn't necessarily mean your property doesn't have to go through probate. If an asset is jointly owned or has beneficiary designation it will not have to go through probate. Assets individually owned and that do not have beneficiary designation will have to go through probate and be divided according to the decedent’s will.
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When an individual passes away without a valid will, their assets pass through the laws of intestacy, a legal framework that dictates the distribution of the estate among heirs. In this scenario, the state determines the inheritance hierarchy, typically prioritizing spouses, children, parents, and other relatives, ensuring that assets are allocated in accordance with established legal guidelines rather than specific directives from the deceased.
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While very similar, probate and trust administration are also different. Depending on the type of trust, trusts can be designed to function indefinitely for the protection of it’s assets or the tax liability of the beneficiaries. Additionally, trust can own and operate business entities adding a layer of complexity to their administration that is not present in probate.
Estate Planning FAQs
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Estate planning is the proactive and systematic process of arranging one's affairs to ensure the efficient transfer of assets upon death, taking into consideration financial goals, family dynamics, and minimizing tax liabilities. It involves the creation of legal documents such as wills, trusts, and powers of attorney to outline one's wishes regarding asset distribution, guardianship, and healthcare decisions.
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A last will and testament is a legal document that outlines an individual's final wishes regarding the distribution of their assets and the care of any dependents after their death. It designates beneficiaries, appoints a personal representative to carry out the instructions, and may include provisions for guardianship of minor children and other specific requests.
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A trust is a legal arrangement in which a person, known as the grantor, transfers ownership of assets to a trustee who manages and holds those assets for the benefit of designated beneficiaries. Trusts are established to facilitate the seamless transfer of assets, provide for specific conditions of distribution, and often offer benefits such as privacy and potential estate tax savings.
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A power of attorney is a legal document that grants someone the authority to act on behalf of another person in financial or legal matters. The person granting the authority is known as the principal, and the appointed individual is called the attorney-in-fact, allowing them to make decisions and take actions on the principal's behalf within the specified scope of the document.
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A healthcare proxy is a legal document that designates an individual to make medical decisions on behalf of another person, known as the principal, in the event that the principal becomes unable to make such decisions. This appointed healthcare agent has the authority to ensure the principal's medical preferences and treatment choices are honored.
Real Estate FAQs
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Title insurance is required if you are financing your purchase. It is needed to guarantee the mortgage amount offered and most lenders will not allow the transaction to proceed without it.
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Title insurance is often one percent or less of the purchase price of a property. It differs from other insurance in that it only needs to be paid one time and is usually done so when the property is purchased.
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It is not necessary to be present at the time of closing for your purchase however it may be beneficial. If your preference is to not be present our team will have no problem coordinating your closing via email and physical mail.
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A title search is a thorough examination of public records to determine the legal ownership and history of a property, ensuring that the seller has the right to transfer ownership. This process aims to uncover any outstanding liens, encumbrances, or issues that might affect the property's marketable title, providing clarity and confidence to prospective buyers.