Holding a property in your name only gives you maximum control and protection during your lifetime. If you do not like the way your property will be distributed should you die without a Will, then you can control who inherits your property by preparing a Will. But there is still the question of what it will cost to transfer your estate to your beneficiaries. In all probabilities, a Probate Procedure will be necessary.
The Probate Procedure may take anywhere from several months to more than a year depending on the size and complexity of the Probated Estate and may cost several thousand dollar depending on the size of the estate. Further, depending on the state that you live in and the size of the estate inherited, your beneficiaries may end up paying somewhere between $22,000-$29,000 for the probate costs and attorneys fees to inherit $100,000 and end up waiting between 4-26 months.
Some of the costs involved in probate procedures besides attorney fees and representatives charges are the courts fees, the cost of a bond that the Court may order, the cost of notifying the estate creditors including the publishing notice, or mailing notice, the cost of estate appraisal, accounting fees to prepare the inventory, cost of transferring the properties to the beneficiaries, recording fees and broker fees to sell securities or real estate.
Many people think that only wealthy people need to make plans to avoid probate. However, each year, heirs of relatively small estates, spend thousands of dollars to settle the estate that was left to them. A relatively easy estate p lanning could have eliminated most of the cost and hassles suffered by these families.
One solution to above problems is to establish a Revocable Living Trust also known as an Inter Vivos Trust.
A revocable Trust is designed to care for your property during your lifetime and then to distribute your property once you die without the need for Probate. Even people with small estate are encouraged to add a trust to their basic Estate Planning.