In Your Interest – by Valerie Rumbough

Probate is a process that manages, settles, and distributes the property in your estate. Probate assets generally consist of any property that you own individually at the time of your death that passes to your beneficiaries according to the terms of your will.

Valerie Rumbough

Non-probate assets include all property that passes outside of your will. Examples of non-probate assets include property that is owned jointly with right of survivorship and property that passes to designated beneficiaries by operation of law, such as proceeds of life insurance and retirement benefits.

Probate can be slow, taking nine months or longer. There are also costs involved, including court costs, attorney’s fees, executor’s fees, and appraisal fees. It is also a public process, with all documents becoming part of the public record, something to consider if you or your family members have privacy concerns.

However, there are benefits to probate. Because the court supervises the process, you have some assurance that your wishes will be carried out. If a family disagreement should arise, the court can help settle the matter.

Further, probate offers some protection against creditors. As part of the probate process, creditors are notified to make their claims against the estate in a timely manner. If they do not, it becomes much more difficult, if not impossible, for them to make their claims later on.

Most estates have a mixture of both probate and non-probate assets. An estate plan can be designed to determine the best fit for you and your family. That way, you can decide what assets pass to intended beneficiaries, including your church or other charity. To get more information, see your CPA or attorney, or call the Baptist Foundation of South Carolina.

– Rumbough, CPA, CFP, is chief operations officer with the Baptist Foundation of South Carolina. Contact her at 800-723-7242. In accordance with IRS Circular 230, any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.