How to Save Your Beneficiaries Thousands on Probate Costs

As depressing as this subject may be, it is a very important issue to address while you are still alive to deal with it. Recently, my own father passed unexpectedly and I have been consumed in dealing with the dispensation of his estate. When I finally got around to hiring a probate attorney, I was shocked to find out that “a fast probate” would take a minimum of eight months and was going to cost me as much as $25,000 since my attorney fees are as high as 4% of the estate. For a half-million dollar home, that could be as much as $20,000. Shocking, isn’t it?

You may be thinking “I have a will…my estate is going straight to…” The problem with that is: wills are contestable. My father’s ex wife has every right to come in and demand a piece of his estate, as do any other blood relatives. A trust is a much better option to save your beneficiaries probate fees, but unfortunately, that can cost thousands of dollars as well. So, instead of spending thousands of dollars to save thousands, utilize the following tips instead and sleep more comfortably knowing you are taking care of your loved ones’ futures.

1. Get a Life Insurance Policy

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   Life Insurance is generally an excellent bargain any day of the week. Not only can you save as much as 40% on your car insurance for adding a life insurance policy with your current insurance company, but life insurance never goes through probate and is uncontestable. It is directly awarded to your selected beneficiaries within weeks of your death. So, not only could you save money, but you save your loved ones a lot of time and hassle by not making them wait for money they may need in order to pay for your funeral or keep your house.

2. Add Your Beneficiaries to the Title of Your House

   For only a few hundred dollars, you can add anyone’s name to the title of your home. That way, should you pass, your beneficiaries are legal owners of the house and can dispose of it without it going through probate. It may sound like a hassle (especially if you want to sell the house), but in all honesty, it only takes a few extra signatures to sell the house should you decide to move. Even better, since your beneficiaries’ names will only be on the title and not the loan, you do not have to worry about ruining their credit with missed mortgage payments, and they can continue to make the loan payments after you’re gone.

3. Get a Locked Box and Put the Following Things in It

   By putting these items in a fire-proof locked box within your house, you can make it easy for your family to claim your belongings without any blood-sucking creditors being able to interfere. Get one at Target for $40 and put these three items in it.

   1. Signed titles to your vehicle(s). This way, your beneficiaries can register your vehicles in their own name hassle-free. Within weeks, they receive new titles and can keep or dispense with these items at their own leisure.
   2. A signed blank check. Should you pass, a signed blank check is the fastest and easiest way for your beneficiaries to empty out your bank accounts. If you don’t like the idea of having a signed blank check readily available, then at least be sure to leave your bank names, logins and passwords readily available within the box instead. This way, they can send bill pay checks to them before the banks get a chance to freeze your accounts.
   3. Any cash you do not want your creditors to know about. Since creditors also get to make a claim on your estate, keeping cash in a locked box is an excellent way to keep them from taking everything from your beneficiaries. Not only will there be no trail, but it will come in handy should the people you leave behind need to make funeral arrangements.
   4.  A notarized copy of your will. While it is a good idea to give the original to the executor of your estate (or someone else you trust), things happen and wills get lost. By keeping a notarized copy readily available, you make things a lot easier for them to get the probate process started. It’s a smart timesaver and cheap to boot.
   5. And a copy of all your policies. Do your beneficiaries a favor and put at least one statement of each policy in your lockbox. These statements have your policy numbers which again makes the whole process faster and easier for them.
      Now that you know, get busy. These things are simple and inexpensive to do, and think what a relief it will be to those you leave behind if you have everything in order. As the old saying goes, “It’s better to be safe then sorry.”