The word probate comes from the Latin root, “probs,” which means “to probe.” Probate is a process that the courts use to transfer title to the property and make sure your debts are paid after you die. It is usually associated with the distribution of property through your Will.

When an estate is probated, property of value is usually transferred to the new owners. Probate is not automatic; it must be requested by an individual or family member. If you become physically or mentally disabled and you inherit property, a process similar to probate can occur while you are alive. This process is called Conservatorship and it allows the court to take control of all proceeds.

In short, probate is a legal procedure used by the courts to transfer the title of the property. This can include real estate, automobiles, stocks and bonds, money, etc.

Pay on death accounts can be created using a simple form at your bank. It is an easy way to set up an informal revocable trust. All you do is designate a beneficiary(s) that you want to receive the money in your account when you die.

Most banks do not charge extra for this type of account. You can include any kind of bank account, such as checking, savings, money market, etc. The beneficiary has no right to your account during your life. You can withdraw the money, close the account, or change beneficiary. Be sure to check with your bank before opening this type of account. Some state laws require that you inform the beneficiary first.

Joint tenancy is another way you can avoid probate. This is a way of holding title to property. You can put the real estate or any of your bank accounts into joint tenancy. This is a simple and efficient way for two or more people to hold title to the property. When one person dies, the surviving joint owner(s) automatically gets ownership. This avoids probate but has many pitfalls such as loss of property to judgment creditors and loss of control.

You should check with your state law concerning joint tenancy. A few states restrict joint tenancy to husband and wife only. Remember this: Once you decide to put your property in joint tenancy, you cannot change your mind. The other person becomes the owner of half your property. If the other person gets into financial trouble, you could lose your property.

Life insurance avoids probate by designating a beneficiary to receive cash. A retirement or pension plan also designates a beneficiary and therefore avoids probate.

The best estate planning method by far is a revocable living trust. You avoid probate, keep control of your property during life, and can cancel or change the beneficiary at any time.

If a minor child’s parents both die and there is no Will, the court Will appoint a guardian for your children. In the event you did appoint a guardian in your Will, the court Will usually go along with your choice during probate, though in some cases they may not, if they determine it’s not in the best interest of the children.

It is important to remember that the guardian Will have custody of the child and the court Will control any money or inheritance for the child. Requests for use of the money for the child must first be approved by the courts. This is a lot like conservatorship.

Let’s say that this child has an extraordinary talent for art. You, as a guardian, would like the young person to develop these talents to his/her fullest potential. You apply to the court for money for private art lessons, and to your surprise the court refuses. It considers art lessons unnecessary and frivolous spending.

Everything that a child needs, including education, art lessons, clothes, etc., must first be approved by the court. A list with all proposed items is usually submitted by an attorney for the costs appraisal. All this is very expensive and is paid through the child’s inheritance.

Again, like conservatorship, your family loses control. The courts make all final decisions in guardianship, which is very expensive and time-consuming. There are many special circumstances not mentioned that can be unpredictable and contribute to depleting a minor’s inheritance.

If a divorced or separated spouse is still alive, the court Will usually name them as guardian, even though this may not have been your last wish. Only with trust Will, you be able to make sure that your minor children are provided for without the court getting involved.

"When she became critically ill, I was helpless. We have been married for 42 years and she always took care of our financial matters. I knew absolutely nothing about our financial status. It took my daughter and I ten days figuring out what bills had to be paid and how to pay them, finding out if Mother had disability coverage through her job, locating insurance policies, and dealing with Medicare. After two weeks, I was emotionally drained. Had I paid all the bills? Had I taken care of all of the disability coverage? Where are there any other assets we neglected to find"?

This scenario is not uncommon, just ask any life insurance agent. Most people desperately need help when the death of a spouse takes place. This chapter is intended to help those faced with the death of a spouse or loved one.

The emotional trauma of losing a loved one is not easy, but knowing what needs to be done, and where things are, Will saves you many hours of emotional stress. The first thing I must emphasize is that you must get organized before a crisis occurs. Personal and financial papers and information should be organized so that you have easy access to them.

Let other people help me

Make a list of a team of people that you can depend on to help in case of a crisis, such as your daughter, son, friend, attorney, minister, or insurance agent. Be sure that you have the phone numbers and addresses of your team of helpers.

Write down a list of phone numbers and addresses of important financial and personal companies such as insurance companies, banks, stockbrokers, and hospitals. Keep accurate records concerning any real estate investments, or your residence. Be sure to have access to all the receipts for any home improvements you have done over the years. Without these records, you may be paying more taxes than you should when you sell your property.

Many people want to sell their homes after the death of a spouse. Don’t be too hasty. Be sure it is the correct decision for you or your loved one. In a deflated real estate market you can lose a substantial amount of money. You may want to consider renting your property until the market changes; A good property manager can help you with this. He or she Will handle everything from advertising the property, rental agreements, and making sure you receive the rent on time.

To make record keeping easier for you, make a checklist of everything that should be done after a death of a loved one. This Will provide you with easy access to important information at a time when you may need it the most. Store this list in a safe place.

It can save your family thousands of dollars and many hours of emotional turmoil.