Probate is the legal process of distributing a deceased person’s assets and settling their debts. After a loved one has passed away, the Court will appoint a personal representative to oversee the estate administration. The personal representative will inventory all assets owned by the deceased at the time of their death and notify known creditors of the deceased’s passing. Estate funds are used to pay debts, and the beneficiaries receive the remaining assets per the terms of the will or, if there is no will, according to Nebraska intestacy laws. The court will then approve the distribution and transactions and settle the estate.
Depending on the circumstances, probate can be a costly and lengthy process. For example, filing fees are paid to the probate court, some assets may need appraisals, and sometimes, personal representatives are entitled to compensation for their services.
In Nebraska, most estates, regardless of whether the deceased left a valid will, are probated. However, there are a few alternatives to help avoid probate in full or regarding certain estate assets:
Trusts
One can opt to distribute your estate through a trust. Trusts may allow for more privacy, reduced costs, expedited distribution, and sometimes, protection from creditors. There are many types of trusts available to those that wish to pursue this route. Our experienced attorneys can assist you in choosing and tailoring a trust to your unique needs.
Beneficiary Designations
Many assets allow for beneficiary designations, such as life insurance policies, retirement accounts, and pay-on-death bank accounts. Selecting beneficiaries allows for these assets to pass directly to beneficiaries as “non-probate assets.” It is important to revisit beneficiary designations often, as these assets can still become subject to probate if all named beneficiaries predecease you.
Joint Ownership
Owning assets jointly with rights of survivorship can ensure that ownership automatically transfers to the surviving joint owner upon your passing. In certain situations, this is a popular option to pass on real estate and motor vehicles outside of probate. Joint ownership may cause creditor issues, and one should give careful consideration to which assets you choose to own jointly.
Small Estate Affidavit
Nebraska law allows small estates to be transferred via a small estate affidavit. Small estate affidavits are helpful for real property, personal property, or both. This allows for a much cheaper and simpler transfer of assets to your heirs.
Understanding the probate process allows you to make educated decisions about your estate planning. Probate has an important purpose and may be right for some. However, it is important to discuss alternatives to probate to determine what is the best fit for your unique goals.
Call us today at 402-548-5418 to discuss your wishes. Our attorneys will make sure that your estate plan reflects your goals and minimizes the burden on your loved ones.