Probate
is a legal process whereby an estate is examined, inventoried, and appraised
by a Probate Court for ultimate distribution to your heirs.
In Texas, the probate process should not be a really big deal absent some
extenuating circumstance.
Texas
uses a probate method called "independent administration." This
means that a document is filed called a Application for Probate of Will
which calls for the independent administration of the decedent's will.
Other than filing the application and a short "prove-up" before
the Court, the decedent's estate is completely administered without
Court supervision.
"What
property goes through the probate process?"
All
of your property is subject to probate unless it is governed by some
other instrument which is "outside" of probate.
For example, property governed by Living Trust, Irrevocable Trust,
joint tenancies in common with right of survivorship, and properties
governed by contract such as Life Insurance and or trusts are outside of
probate.
Lawyer's
Fees. There are lawyers who would charge an exorbitant price for handling a
probate – some as high as 10% of the estate’s value.
It should not be that way. Texas has a number of methods available
which significantly reduce court supervision.
If you have a properly drawn will calling for independent
administration without bond, the probate process should not be time
consuming or expensive. This, of course, is directly dependent upon the
organization of the estate and its size. Recognize, if your spouse or
relative “left a mess” then probate costs may be greater.
This can be avoided, however, by organization and implementation of an
estate plan.
Beware:
There are a number of entities our there who are involved in "trust
mills." These are organizations which are designed to sell large
quantities of trusts at extremely low prices. Usually, the trust mill goal
is to use the trust as a vehicle to sell some other product such as life
insurance or annuities. Regardless of what "free seminars" and
ruthless salespeople tell you, probate in Texas is not the nightmare
everyone thinks it is.