
Do Your Beneficiaries Have to Go Through Probate Law?
Probate is known to be a tedious and stressful process, but beneficiaries must receive assets through a will. Does this mean that the beneficiaries are legally required to proceed with the probate process and that executors are required to begin the process? The answer may surprise you, but if you or your beneficiaries are planning to skip probate court, there are some facts you should know.
The estate planning attorney at Pike Law has several decades of experience helping people in Northeastern Pennsylvania. If you’re looking to create a will and plan your estate for your heirs, our attorney can help.
Can Beneficiaries Ignore Probate Court?
Technically, there is no legal requirement for your beneficiaries to begin the probate process. If all of your beneficiaries decide not to proceed with the probate process, and your will leaves no extra instructions for what the executor should do, the process never starts. There are reasons why a beneficiary might do this.
The probate process only begins after the death of a loved one. It can take time to get far enough through the mourning process to handle their estate. Beneficiaries must also consider tax considerations that come along with new assets. If an asset changes how much someone has to pay in taxes, they may not want to accept what they may receive in a will.
In regards to the former, we do recommend that beneficiaries complete the probate process as soon as possible. This way, they can receive the assets they may need to help them in mourning, or at least get back to mourning. In regards to the latter, we can help you prepare your estate to take tax considerations into account so you don’t unintentionally burden a loved one.
The Consequences of Skipping Probate Court
If your beneficiaries choose to skip probate court, they do run the risk of potential consequences. In Pennsylvania, these potential consequences include:
- Invalid Transfer of Assets: Without probate, the transfer of certain assets like real estate, bank accounts, and stocks may be considered invalid. Beneficiaries face legal challenges from other potential heirs or creditors if they try to access assets without going through probate.
- Liabilities and Debts: Probate ensures that the deceased’s debts and taxes are paid before distributing the remaining assets. Skipping probate could leave beneficiaries personally liable for those debts without the help of inherited assets that could pay off their debts.
- Assets Lose Value: The assets you are hoping to pass down may lose their value, possibly altogether. Pennsylvania can even claim ownership or charge the executor with personal or criminal liability if certain assets require someone to be responsible for them. Examples of such assets include businesses and livestock.
- Lose Rights to Assets: Your beneficiaries have, at most, 21 years after your original death to enter the probate process and claim their right to inherit assets from your will. The only exception is when the beneficiary was originally an unknown heir that you did not mention in your will, but can claim assets from it.
Contact Pike Law to Create a Will That Won’t Inconvenience Your Beneficiaries
It can be difficult to discuss, but you want things to be easier for your loved ones after you pass away. You want your will to be able to pass through probate as quickly as possible so your loved ones can focus on mourning rather than legal fees and court dates.
If you split your assets with tact using a combination of trusts and wills, you can help certain assets avoid probate and certain taxes altogether. Our skilled will-writing attorney, John B. Pike, has decades of experience doing exactly this. Contact us today to schedule a consultation.