Understanding Probate and Later Life Financial Planning
Thursday, September 1st, 2011Recent research by National Savings and Investments found that more than one third of people are unaware of the wishes of their parents, and that they weren’t even sure if their parents had decided to make a will. The probate process can be a difficult one at the best of times, but with the loss of a parent, issues such as probate fees and coping with the probate cost are the last thing that you want to be thinking about.
The issue of probate is a sensitive one, but it’s also an important one, and something that needs to be talked about in the open, before it becomes a pressing issue. If you want to make sure that your parent’s wishes are honoured after they die, then the most important thing is to find out if they have made a will, and where it is kept. If there is no will, then that’s where the major trouble in terms of probate fees can arise. The basic probate cost, for administering a simple estate where a will has been made, is a lot lower than the probate fees charged in cases where there is a dispute or no clear next of kin.
When someone close to you dies, dealing with probate costs and lawyers just adds to the stress. If your parents are unsure what to do with their will, then there are a lot of people that can offer help and guidance so that they can navigate the minefield of inheritance tax, probate fees, and other related issues. For most people, expert assistance will be invaluable, as the legal process surrounding probate can be quite complicated.
While you’re discussing the probate issue, take some time to think about your own wishes. Have you left a will? What would your children do if you died? The baby-boomer generation is in a unique situation in that they, as a generation, stand to inherit huge amounts of money, but that money will be passed through the time consuming, and costly probate process. Some people are creatively avoiding the probate cost by using living trusts, but often, in the distraction of helping loved ones navigate the process, they forget that they too need to express their wishes in a will, or through a trust.
The probate process is designed to protect families during a difficult time, when emotions run high and people are at their most vulnerable. The government is not out to rip people off with probate fees, although some solicitors and attorneys may have you believe that is the case. In truth, for most families, it is the emotional cost, not the monetary one that is the most difficult. Taking a few minutes today to sit down with your loved ones and discuss each other’s wishes – before putting them in writing – will go a long way towards reducing the probate cost, and making sure that things go as smoothly as possible in what will be a difficult time for everyone.