Magii Inc. Discusses How to Avoid Estate Probating
Posted on 11/19/2014
One of New York's leading wealth management firms Magii Inc., specializing in maintaining and generating financial prosperity for businesses and individuals, explains the strategy behind avoiding estate probating.
Studies confirm that the motivations of professional estate planning include the promotion of harmony among beneficiaries, as well as the prevention of inheritance mismanagement among children. However, the main priority is to avoid probate. The estates of most Americans go through the probate process. If the estate owner planned the estate properly, this is not a problem, and the issue actually lies in dying intestate.
In the United States, more than 2.5 million people die annually. An estimated 70 percent of them either did not have a will or did not plan their estate accordingly. The number of people who die intestate should increase dramatically during the next 10 to 20 years due to the longevity of Generation Y. Their beneficiaries will deal with the complications of an estate that has been poorly planned, teaching them the value of thorough estate planning.
Attorneys are taking advantage of the opportunity intestacy presents and are shifting their focus from trust planning to estate probating. To minimize the time and complexity of probate proceedings, estate owners need to stipulate clearly the details of their estate. After paying debts, contacting those who inherit the estate and swearing in a representative, a solid inventory of property will ensure beneficiaries receive the right assets. When the probate frenzy calms in a decade or two, attorneys will again focus on estate planning as more employees will prioritize their asset management.
Because many Americans undervalue their net worth, most estate owners do not realize the necessity of estate planning. Drafting a formal will can spare families the endless chaos of the probate procedure, which has a tendency to accumulate costs. Estate owners can bypass probate by sharing ownership, which is otherwise known as "joint tenancy." However, if property transfers in a bid to avoid creditors, the court may find in the creditors' favor, and they will claim against your share of the property.