In this video series we are working through the 5 reasons why you need to do your estate planning. This video covers the second reason – so that your estate can avoid Probate.

Most people want their estate to avoid Probate, but not everyone understands exactly why. There are essentially 3 main reasons to have your estate avoid Probate, and they are:
1. To simplify the administration process,
2. To save fees and expenses, and
3. To maintain your privacy.

The Probate process can be a highly complicated process through the local court system, and it involves following the rules and procedures dictated by Ohio law and the local Court. It involves the filing of series of forms, giving notices and holding hearings, and following timelines. By keeping your estate out of Probate, you can greatly simplify the process for the people who will be going through it.

Of course, the expense of Probate is a big issue. The biggest expense is the attorney fee that is pad to the attorney who represents the Executor or Administrator, and that is generally calculated as a percentage of the assets in the Probate. In Lucas County, Ohio, for example, the fees are 4.5% of the value of the first $100,000 of probate assets, 3.5% of the value of the next $300,000, and 2.5% of the value of any probate assets over $400,000. On a $100,000 estate, the fee would be $4,500. That expense adds up quickly and is a major motivating factor in having your estate avoid probate.

The last reason to have your estate avoid probate is to maintain your privacy. Everything in a Probate Court file is a public record and can be viewed by anyone for any reason. That includes the names and addresses of all of the heirs and beneficiaries, the details on all assets in the probate (for example, the account numbers and balances, appraised values of real estate, etc.), and a listing of how all of the estate assets were ultimately distributed (who received what). Most people would prefer that information not be made public, so avoiding probate is important to them for that reason.