What is Probate?
Probate is the term that is given to the process of obtaining the official approval of the last will and testament. To assist with the administration of a will when someone dies you can use a probate practitioner. Probate fees are the costs charged by a practitioner for the administration of a will.To know more about probate laws and their fees, you may head to http://www.lawbh.com/.
Who Handles Probate?
It is possible to avoid probate fees by obtaining probate yourself. However, bereavement is a difficult and emotionally stressful time, and dealing with the intricacies of administering an estate is not easy when you are feeling the loss of someone close. If handled incorrectly this can also be an expensive process. For most people, the practical and secure option is to employ a probate practitioner to handle the affairs.
What Does Probate Cost?
Calculating average probate fees is a complex process. This is due to the variety of parties that might be used to carry out this process. Without fail banks charge higher fees than the solicitor, averaging between 4% and 5%.
This is not the best value for money. Lawyers handling probate are often undercut by will-writers who will offer services for a much lower charge but may lack the skill to ensure the process is handled effectively. To confuse matters even further, some probate experts charge a percentage of an estate's value, while others charge by the item, or per hour. In some instances, you might get charged for both.
The levels of estate planning are a systematic approach that is used for explaining estate planning in a way that you can easily follow. Which of the following levels you need to complete is based on your particular objectives and circumstances.
Level One: The Basic Plan
The situation is that you have no will or living trust in place, or your existing will or living trust is outdated or inadequate. The objectives for this type of planning are to:
1) Reducing or eliminating estate taxes. You may head tolawbh, to know more about levels of estate planning.
2) Avoiding the cost, delays and publicity associated with probate in the event of death or incapacity.
3) Protect heirs from their inability, their disability, their creditors and their predators, including ex-spouses.
If you want to accomplish these objectives, make use of pour-over will, a revocable living trust that allocates a married person's estate between a credit shelter trust and a marital trust, general powers of attorney for financial matters and durable powers of attorney for health care and living wills.
Level Two: The Irrevocable Life Insurance Trust
The situation is that your estate is projected to be greater than the estate-tax exemption. While there is a present lapse in the estate and generation-skipping transfer taxes, it's likely that Congress will reinstate both taxes sometime this year.
Level Three: Family Limited Partnerships
The situation for level three planning is that you have a projected estate-tax liability that exceeds the life insurance purchased in level two.
A family limited partnership (FLP) or a family limited liability company (FLLC) can play a valuable role in this situation.