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Oregon Estate Planning & Probate
Generally, probate is the court supervised administration of an estate of a decedent. In a probate proceeding, the court oversees the process of identifying the deceased person's property, paying any debts, identifying the proper heirs, and distributing the property to them. Most of the actual work is done by a "personal representative" (usually a relative or friend of the deceased person), with the assistance of an attorney and often an accountant.
Not all of a deceased person's property is subject to the probate process. Life insurance, retirement accounts, and "joint tenancy" property all pass directly to the appropriate beneficiary automatically, without any court confirmation. If the person created a "living trust", any property held in the trust is not subject to probate. A bank account or motor vehicle title may also specify a death beneficiary.
Benefits of Probate
Probate does provide some important benefits. Most importantly, it provides some court supervision to make sure a deceased person's property is accounted for and distributed as intended.
Once the probate "creditor's claim period" expires (generally four months after the executor is appointed) it is very difficult for creditors or others to claim any interest in the estate. For a professional (such as a doctor, accountant, or attorney), probate may bar later lawsuits that would otherwise be difficult to defend without the help of the deceased person.
Drawbacks of Probate
Probate has several drawbacks, which lead many people to seek to avoid probate. Formal probate takes at least six months to a year. Sometimes, probate can drag on for several years, or in extraordinarily rare situations, for decades. Second, probate can be expensive, because of fees paid to the professionals and the personal representative. The larger the estate, the larger the expense of probate.
At Stahancyk, Kent, Johnson & Hook, P.C. we can counsel you in how to avoid
probate, or we can assist in administering estates, streamlining the process
to keep costs low and ensure timely distribution of assets. |
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