We are taught by financial experts to structure estate planning to avoid probate. But do you know why? From time to time, we all need all need a quick refresher on what the two main challenges are with probate:
1) Probate usually ties up property for months or years in some cases;
2) Probate is not free. Attorney and court fees zap up to 5% of an estate's value.

Purpose Of Probate
The purpose of probate is to prevent fraud during the transfer of a deceased person's property to their heirs. The probate process also ensures creditor claims are paid which protects the heirs from exposure to dealing with debts.

Most Probate Cases Go Smoothly
The vast majority of estates transition smoothly to family members. Only a small percentage of wills are contested so there is little need for court involvement. In these cases, the probate process becomes a clerical matter, for example, lots of paperwork is involved. Probate without a legal will is a nightmare so do your family a favor, do the responsible thing and at the very least set up a legal will.

Probate Can Be A Slow Process
Let's say you have a life insurance policy, but the beneficiaries are no longer alive upon your d
eath. In that case, the proceeds from the policy would be paid to your estate upon your death. Probate proceedings could delay distribution of that money to your heirs that are still alive for a long time. Probate can become a frustrating process for the person you named to be executor of your estate.

Probate Is Expensive
As you know, whomever you choose to be Executor is entitled to compensation from your estate for their work in settling your estate completely. In addition, your lawyer will get paid from your estate funds as well to cover their fees, too. According to the lawyer sources we researched, probate documentation is very complicated, so often times the decision to hire a lawyer is unavoidable. Do not plan on trying to do all the paperwork yourself because you could create bigger problems than it's worth. Fees for a small estate, say for example, $300,000 consisting of just a few assets like a house, car, and some savings could easily run $15,000.

Affordable Alternative To Probate
Preparing a living revocable trust allows you to avoid probate altogether. Trusts are now inexpensive compared to what they used to cost. Contrary to popular belief, trusts do not cost thousands of dollars to execute. In fact, a friend of mine had one done by a competent attorney for just $700 just two years ago. Compared to the cost of probate, trusts are more than reasonable.