Probate

Probate is the formal legal process of settling a deceased person’s affairs. Simple, right? Well, not quite. It’s the court-driven path to accessing and distributing someone’s remaining property, either according to their expressed wishes or, if none exist, the law. Here’s where it can get messy.

Take this story: A young father tragically passed away without a will or trust. His only assets were a home (titled in his name only) and a life insurance policy. The problem? His mother, the named beneficiary, had already passed away, leaving no successor beneficiary. As a result, the insurance proceeds became part of his estate, triggering the probate process.

The next hurdle? His only heir—a minor daughter. Funds can’t simply be handed over to minors; a legal guardian must be appointed by the court. Not the mother, mind you, unless she legally proves her guardianship. Add in an aunt squandering estate funds, expensive legal battles, and court-imposed restrictions on using inheritance for everyday needs (like the child’s ballet lessons), and you’ve got a perfect storm of frustration, delays, and financial strain.

The lessons?

Update your beneficiary designations.
Always name a successor beneficiary.
Better yet, set up a trust and name it as the beneficiary.

With a trust, the assets bypass probate entirely, eliminating costly legal fees, family disputes, and court micromanagement. Proper planning ensures your loved ones are cared for without the red tape. Don’t leave their future in the hands of a judge—take control today.