Your Beneficiaries Can Lose Their Intended Assets Through Probate

Probate is used to ensure that the wishes named within your will are granted. By having your assets go through probate, your assets can go to your chosen beneficiaries.

Even though the above is true, probate can lead to your beneficiaries losing some of their intended assets. By going over why this is the case, and speaking with a Florida estate planning lawyer at Millhorn Elder Law Planning Group, you can protect your estate.

How Can Your Beneficiaries Lose Their Intended Assets Through Probate? 

Probate can be used to take care of any debts you owe. And, to take care of these debts, the assets within your estate can be liquidated.

Just as an example, if you owe $52,000 in medical expenses, then the money in your bank account could be used to pay off this debt.

Your beneficiaries may not receive as much money as you would like, if you have debts that have yet to be taken care of.

If you do not have the money to pay off the debts you owe, the items within your estate can also be liquidated. This could mean your beneficiaries might not receive the car you wish to give them, among many other possibilities.

On top of the points clarified above, probate can be very expensive. To pay for the costs associated with probate, the assets within your estate can also be liquidated. This can reduce what your beneficiaries ultimately receive.

A good example of the above is as follows: to pay the cost associated with inventorying your assets, your electronic items could be sold to do so. Or, alternatively, the cash within your estate could be used to take care of these costs.

What Should You Do To Protect Your Beneficiaries’ Intended Assets? 

To protect your beneficiaries’ intended assets, you can develop a trust. A trust can be used to protect your assets from creditors by putting your assets under the ownership of that trust.

If you develop a trust, your creditors will, in most cases, be unable to obtain any assets from your trust. This is because, as per the terms of your trust, those assets do not belong to you.

On top of that, putting your assets in a trust bypasses probate. When you pass away, your assets will not need to go through probate. Instead, they will go straight to your beneficiaries.

Developing a trust is not easy. And, as such, if you would like to develop a trust, you should work with a lawyer who knows how to do so. 

Speak With A Florida Estate Planning Lawyer Today 

To ensure that your beneficiaries receive the assets you would like to give them, you can develop a trust that includes all of those assets. This protects your assets and bypasses the probate process. 

If you would like to develop an estate plan that protects your assets, you should work with a legal professional that can help. Speak with a Florida estate planning lawyer today to develop the estate plan right for you. 

Sources: 

law.cornell.edu/wex/probate

law.cornell.edu/wex/trust