In 2021, millions of dollars will be wasted on unnecessary probate court fees. In Indiana, there are ways to avoid paying extra costs of going through probate, waiting for a decision and increasing the difficulty of distributing a decedent’s property.
Avoiding probate fees
Avoiding probate is one method to eliminate fees during the process of distributing an estate. However, if there is a will or not a will, the law may require that the estate goes through a probate court. This gives other people the opportunity to contest the will and stop the distribution of a person’s estate.
Probate proceedings are expensive and could take many months or years to complete. The estate’s heirs are likely to have to pay the costs. Meanwhile, the assets are frozen until the final decision is made. When the work is finally finished, the fees are paid using the current value of the deceased person’s estate. Additionally, higher valued assets result in higher court costs.
Consider a trust
Another method of avoiding probate is to transfer assets to a trust. Getting a revocable living trust is another option to skip the probate process. The property transfers immediately to the heirs. When creating a trust, you can name yourself as the trustee, manage the trust and name one or more beneficiaries. Most importantly, your trust is protected from the probate process.
Preserve the full value of the inheritance
Even when making a will, dealing with the probate process can be expensive and time-consuming. You can avoid probate altogether by transferring property to a trust, setting up transfer-upon-death accounts, making tax-free donations and other techniques.