The proceedings that take place in probate court (during which the assets of a deceased person are transferred to the individuals who inherit them) can be drawn out, expensive, and difficult to understand. Unsurprisingly, many people go to great lengths to make life easier for their families. However, each state has its own laws and procedures for executors to follow during the probate process. But what are the consequences of not probating a will?
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4 Consequences Of Not Probating A Will
1. Assets Don’t Transfer To Beneficiaries.
Probate must be started to transfer ownership of titled probate assets (including houses, vehicles, and boats) left behind by a deceased person after death. If the legal measures to probate the will of the deceased person are not taken, these assets will continue to be titled in the deceased person’s name. This can result in a wide variety of concerns, including problems with taxes and registration, as well as the inability to sell the assets at a later period.
The probate process is how this issue can be resolved. The probate process allows the title to be transferred without the deceased person’s signature and with the court’s approval. In the absence of probate, heirs and beneficiaries who claim ownership of titled property may encounter the same challenges as those associated with non-titled assets, which were outlined before.
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2. Expenses Don’t Get Paid.
It is impossible to ascertain what taxes are owing (if any) until an estate’s probate process has been completed. If the estate has an outstanding tax liability, failing to pay any applicable taxes by the due date might result in interest, fines, and other penalties.
Another reason why a will should be probated as soon as possible is that certain types of ownership transfers have the potential to result in tax liability for beneficiaries if they are not handled appropriately. This is another reason why a will should be probated as soon as possible.
3. Creditors Can Come Knocking On Your Door
The provision of finality about creditor claims against the deceased person’s estate is another essential feature of the probate process. After the probate process, creditors no longer have the authority to collect from the estate or from the estate’s beneficiaries, provided that the personal representative has given enough notice and has dealt with any legal claims appropriately.
However, if there is no probate, the estate is considered open, and creditors can continue to pursue payment for obligations incurred during the deceased person’s life.
4. Can You Avoid Probate In Alaska?
You can avoid the expense and delay of the probate process in Alaska by establishing a living trust for nearly any asset you own, including real estate, bank accounts, family trusts, vehicles, and so on.
According to the Alaska probate law, you need to write a trust document comparable to a will and name someone to succeed you as trustee after your passing (called a successor trustee).
If you and another person own a piece of property jointly, and that ownership includes the “right of survivorship,” then when one of the owners passes away, the surviving owner will immediately become the sole owner of the property. It will not be necessary to go through the probate process to transfer the property; however, some paperwork will be involved to demonstrate that the title to the property is held solely by the surviving owner.
How We Can Help You
It can be challenging to locate accurate and pertinent information because the process of probating a will is governed by laws and uniform probate codes for each state.
During the administration of the estate, we provide our customers with financial assistance to assist them in overcoming the challenges presented by the scenario. If you could give us some notion of what you’re looking for, we’d be happy to do our best to find a solution that meets all your requirements.
Sources:
https://www.nolo.com/legal-encyclopedia/alaska-avoiding-probate-31880.html
https://bellerandbustamante.com/blog/what-happens-if-you-dont-probate-a-will/
https://www.cmcohenlaw.com/the-consequences-of-not-probating-a-will/
