The Cost Of Probate
Did you know that the cost of probate is based on the gross value of the estate, not the net value? This can be devastating to the people left behind.
Examples of the cost of probate
A mother passes with a will and names her daughter as the beneficiary. The mother’s home is worth $200,000, and her mortgage is $195,000. A will does not avoid probate. And since probate is based on the gross value, not the $5,000 in equity, this leaves the daughter owing money to the probate court and the attorney.
A client of an agent had five homes. His will instructed that one home would would go to each of his five grandchildren. The cost of probate made it necessary for one of the homes to be sold. So his dream of leaving a home to each of his grandchildren was destroyed.
A family member of an agent passed in Texas. He had a couple of retirement accounts that did not name a beneficiary. After 6 months in probate court (and after $18,000 in fees), the family was able to get what was left. This was a fraction of the original value of the retirement accounts.
Avoiding probate
In conclusion, avoid probate by setting up a family living trust. Don’t leave your family unprotected. And don’t let your hard-earned savings become diluted before reaching your loved ones Set up a family living trust in order to avoid probate.
Sense Financial Services is a boutique financial firm. We specialize in self-directed retirement accounts with checkbook control. But retirement accounts are only the beginning of financial planning. Our goal is to educate and empower clients to take control of their financial futures. Contact us today to discuss retirement options and family living trusts. One of our specialists would be happy to speak with you.