February 2021 Issue: Estate Planning for Beginners: Probate and Intestate Distribution-Estate Planning for Beginners: Probate and Intestate Distribution by Robert E. Maloney

Estate Planning for Beginners: Probate and Intestate Distribution by Robert E. Maloney

Pdf Summary

In this article, the author discusses the importance of estate planning and specifically focuses on probate and intestate distribution. When a client passes away, their will is presented to the probate court to determine its validity. The judge appoints an executor and/or trustee to carry out the terms of the will. The executor is responsible for notifying the public of the death and settling any outstanding debts or taxes before presenting a plan for the distribution of assets. The beneficiaries must approve the plan before the assets are distributed and the estate is closed.<br /><br />If a client dies without a will, the assets are subject to intestate distribution, which means the state determines who will inherit the assets. Assets that are jointly owned or have beneficiary designations are not subject to probate, but may still be subject to estate tax.<br /><br />The article provides two examples to illustrate how intestate distribution works. It emphasizes the importance of having a will to ensure that assets are distributed according to the client's wishes and to avoid the complexities of probate court. The author also suggests considering the use of trusts in estate planning for better results and to accommodate unique family situations.<br /><br />The article concludes by highlighting the primary losses that individuals may experience, such as the loss of a loved one, loss of routine, and financial insecurity. The author emphasizes the importance of acknowledging and working through these losses and offers tips for supporting clients through the grieving process. The article also stresses the importance of self-care for advisors to be able to effectively support their clients.<br /><br />Note: The summary has been edited for clarity and brevity.

Keywords

estate planning

probate

intestate distribution

will

executor

assets

beneficiaries

estate tax

trusts

grieving process