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Probate Myths Debunked

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Page 1: Probate Myths Debunked
Page 2: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

There are many misconceptions about the Missouri probate process that often result in clients having the wrong estate planning goals.

Debunking Myths About Probate

@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 3: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

Debunking Myths About Probate

• The main goal of your estate plan should be to preserve your estate for your family

• Each state has its own procedures when it comes to probating an estate

• For that reason, it is important for Missouri residents to be familiar with the Missouri probate process

• That includes knowing the truth about many of the common myths surrounding probate

@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 4: Probate Myths Debunked

Myth #1: The Missouri Probate Process Can Take Years to Finish

Page 5: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

Myth #1: The Missouri Probate Process Can Take Years to Finish

• A very common concern many clients have is that their estate will be “tied up in probate” for years, making their families wait to receive their inheritances

• While the Missouri probate process usually takes a significant amount of time to complete, the length of time depends on the size and complexity of the assets involved

• Regardless, there are certain steps that must be taken in every situation, so probate typically takes about ten to twelve months to finish

5 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 6: Probate Myths Debunked

Myth #2: Probate is Always so Expensive

Page 7: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

• Regardless of the size of your estate or the complexity of your assets, there will always be certain expenses associated with probate

• However, not every estate will be extremely expensive.

Myth #2: Probate is Always so Expensive

@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 8: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

Myth #2: Probate is Always so Expensive

• Some of the basic expenses you can expect include attorney's fees, court filing fees, appraisal fees and mailing expenses

• It should be noted that, many of the alternatives to probate also cost money

• So, the real issue becomes whether you would rather spend that money now or allow it to reduce the value of your estate after your death

• There are almost always methods to reduce your probate fees and expenses with the help of an estate planning attorney

8 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 9: Probate Myths Debunked

Myth #3: Probate Will be Significantly Delayed in Order to Appoint an Executor

Page 10: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

• The appointment of an executor does not necessarily take a long time. In many cases it only takes a week or two

Myth #3: Probate Will be Significantly Delayed in Order to Appoint an Executor

@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 11: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

Myth #3: Probate Will be Significantly Delayed in Order to Appoint an Executor

• Appointing an executor can cause a delay when family members disagree about who should serve as executor

• In fact, family disputes are a common cause of delay when it comes to probate

• A Missouri probate lawyer can help you to avoid delays in estate administration by careful estate planning

11 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 12: Probate Myths Debunked

Myth #4: If I Don't Have a Will the State of Missouri Will Take My Property

Page 13: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

• Another misconception that people have is that, without a will or trust, the state will take all of the property in your estate when you die

• This is not the case

Myth #4: If I Don't Have a Will the State of Missouri Will Take My Property

@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 14: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

Myth #4: If I Don't Have a Will the State of Missouri Will Take My Property

• The truth is, the laws are designed to ensure that your property goes to your relatives, even the most remote ones if necessary, if you happen to die without a will or estate plan

• The only time a person’s property goes to the state is when there are no surviving relatives, which is very rare

• By having a will or trust, you can avoid this situation, though, and ensure that your loved ones receive your property, pursuant to your wishes

14 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 15: Probate Myths Debunked

Myth #5: Estate Taxes Will Take Half of My Estate

Page 16: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

• If your estate actually incurs any estate taxes, the percentage is currently less than 50%

Myth #5: Estate Taxes Will Take Half of My Estate

@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 17: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

Myth #5: Estate Taxes Will Take Half of My Estate

• However, most estates are not even charged an estate tax because of the estate tax exemption which is currently $5.45 million (as of 2016)

• What that means is, unless the value of your estate exceeds $5.45 million (which most estates do not), then your estate will not owe any Federal Estate Taxes

17 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 18: Probate Myths Debunked

The Basic Steps of Missouri Probate Process

Page 19: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

The Basic Steps of Missouri Probate Process

• In order to initiate the Missouri probate process, a petition needs to be filed in the county where the deceased resided at the time of death

• After the petition is filed, the court will set a hearing and notice of that hearing must be published and mailed to all named heirs or beneficiaries

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Page 20: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

• The person whom is chosen to be the personal representative (executor or administrator) of the estate will take possession of the property included in the estate and create an inventory

The Basic Steps of Missouri Probate Process

@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 21: Probate Myths Debunked

Basic Steps of Probate Continued

Page 22: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

• After notice of the death has been made, creditors with legitimate debts will be given time to submit a claim for payment

Basic Steps of Probate Continued

@ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 23: Probate Myths Debunked

@ 2015 Gaughan & Connealy Estate Planning Attorneys. Private & Confidential

Basic Steps of Probate Continued

• Valid claims will be paid from the estate before any other distributions can be made

• The personal representative is also responsible for ensuring that all estate taxes are paid (if any are due) before any distributions can be made to heirs and beneficiaries

• In order to complete the final step of the Missouri probate process, which is closing the estate, the personal representative will provide to the court an accounting of all transactions relating to the estate

23 @ 2016 Gaughan & Connealy Estate Planning Attorneys, Private & Confidential

Page 24: Probate Myths Debunked

Contact us! If you have questions regarding probate, or any other estate planning matters, contact Gaughan & Connealy for a private consultation by calling us at (816) 974-3030.