At Probate Lawyer Brooklyn we know all about the probate process comprehensively. There are quite a few details you need to know to make things right.
For example, probate won’t help you avoid taxes.
Circumventing probate doesn’t mean you won’t be able to pay your taxes as required by law. If you give away a vast amount of your estate when still alive, chances are likely that you will pay death or gift taxes to the government of the day.
Paying of taxes doesn’t depend on whether the property went through probate or not – as long as you give away the estate, you have to pay tax.
It is imperative that you think about taxes when you are still alive. Talk to your estate planning attorney to understand what types of taxes you need to pay and when you will pay them. The financial planner can give you an idea of how much taxes you are required to pay.
The Right of Your Family to Your Estate Remains.
Going to probate court doesn't change the fact that you need to leave your family with some property.
First, you need to know that your wife is entitled to some of the property you leave behind. Using probate to avoid this won’t work at all. The good thing is that most of us wish to leave our estates to our spouses and kids.
However, it is upon you to decide what to leave to your family members. For those families with kids who are still minors, the general consensus is to leave the property to the surviving spouse. If you don’t do this, the spouse might head to court to claim at least half of the estate, because it is their right.
This right varies from one state to the other, but most states agree that half the property you acquired together or while married will go to your spouse, then you can share the rest the way you want.
If you plan to leave less than the required portion to your spouse, it is vital that you consult a lawyer to guide you on what to do.
On to kids. If both parents pass away, then the kids can inherit what has been left behind by the family. However, this is not a mandate of the law – you can decide not to leave your kids anything.
All you need to do is to come up with a will and then state the terms of inheritance – whether you wish to leave them something or you don’t intend to.
Grandkids don’t have the right to inherit anything from you unless their parents are dead. In this case, they take the position of the parent in your will.
Payment of Creditors must be Accomplished.
When you avoid probate you don’t avoid paying your creditors. You need to factor this in your will when leaving the estate for your family. This is because creditors have a priority compared to the family. If you don’t leave enough to pay off the debts, any asset which passes outside probate might be claimed by the creditors.
Avoiding probate is a good way to keep your family out of the public eye, but you need to understand that even with probate there are some things that have to be done.
At Probate Lawyer Brooklyn our lawyers are ready to help your family handle the probate process the right way. Call us today for assistance!