Why Most People Want to Avoid Probate
Most people want to avoid probate for a variety of reasons:
- Time/hassle (9-12 months average)
- Legal/court costs (2-3% of the estate)
- Loss of privacy
- Loss of control
A Will Never Avoids Probate
Myth: You can avoid probate by having a will.
Truth: A will does nothing to avoid probate.
There is a common misunderstanding that somehow a will can avoid probate. However, a will is merely instructions for a judge in probate. A trust can avoid probate, but a will never avoids probate.
Very Small, Simple Estates Can Avoid Probate
Some very small, simple estates can avoid probate without a trust. For example, in the state of Minnesota, it is possible for someone to claim an inheritance through the utilization of an affidavit if
- there are no other complications and
- the estate is valued at less than $75,000.
It is also possible for the personal representative of an estate to petition the probate court to allow for simplified probate if the estate is small and there are no creditors’ claims.
A Trust is the Most Common Way to Avoid Probate
You can still take steps to avoid probate even if you do not qualify for the simpler processes. One option that is available to you would be the creation of a revocable living trust.
These trusts are appealing because you, as the grantor, retain complete control of the resources that you transferred into the trust throughout your life. If you were to become incapacitated, the successor trustee that you name in the trust agreement would administer the trust.
After you pass away, the trustee distributes assets from the trust to the beneficiaries in accordance with your wishes as stated in the trust agreement.
With a trust, your beneficiaries will ultimately receive their inheritances in a timely and efficient (minimizing legal fees) manner because your family can bypass probate and manage your affairs without court involvement.
