Why are families losing their inheritance to the government and probate court attorneys?
People who spent their lifetimes building up their life savings intended to pass it on to the people they care about or donate it to charity – not to needlessly spend that money on probate and legal fees.
It's estimated that American families forfeit $2 billion annually to estate settlements in probate court.
This is why estate planning can’t be ignored
Surviving family members are losing out on this inheritance money for one of two reasons: Their parents didn’t bother to create a comprehensive estate plan, or they took shortcuts where mistakes were made, and their families had to clean up their mess in probate court.
A Will is an admission ticket to probate court
If all you have is a Will in Arizona your estate must go through probate court before anyone can inherit anything.
Low probate thresholds in Arizona
Your estate will meet Arizona’s probate threshold if you own a home worth more than $100,000 or have personal assets worth more than $75,000. Your personal assets include the money in your bank accounts, your investment accounts, and everything else you own - your cars, jewelry, artwork, and family heirlooms. Consider your estate, do you meet this $75,000 threshold?
A Probate court settlement could rob your kids of their inheritance
If all you have is a Will, or you don’t have any estate planning documents, your home and your other assets could go straight to probate court when you pass away. With more than 20,000 Arizona probate cases either active or pending, your estate settlement could take years and cost tens of thousands of dollars in probate and legal fees. This financial burden would fall on the people you love. They would have to come out of pocket to pay all of these fees upfront. And before they could get what’s left of their inheritance, your personal representative (Executor) would need to provide proof to the court that all expenses have been paid, including probate and legal fees, bills from creditors, and your taxes.
| Average Probate Cost | *averages these may vary |
| Attorney Fees | 5% |
| Executor Fees | 3% |
| Court Costs | 2% |
How unforeseen expenses could further drain your loved one’s inheritance
Imagine if you have a home mortgage when you pass away and your probate settlement takes 12 months. Your family would be responsible for paying your mortgage, your property taxes and your homeowners insurance until your probate settlement is final.
After your loved ones pay all of the expenses for your settlement, their inheritance could be next to nothing.
Probate court makes the details of your estate public
After your Will is admitted to the probate court, your estate will be made public for everyone to see, including creditors and any disgruntled family members. Your creditors could immediately demand payments from your loved ones. Family members who were not included in your Will, or felt cheated from their share of the inheritance could also contest your Will.
A contested Will could add more legal fees and cause family feuds
A contested will could lengthen the probate process and add tens of thousands of dollars or more in attorney fees. According to an Ameriprise survey, “70% of the fights among adult siblings involve issues with parents such as how an inheritance gets divided”. Your children who were once inseparable could be fighting over their inheritance in court.
Why Wills fall short in decision-making authority
A Will does not take effect until you die. This means if you become incapacitated due to an accident or an illness, a Will does not authorize anyone to make decisions on your behalf. No one could legally pay your bills or oversee your medical care. Even if your Will listed a person to look after your children, that person would not have legal authority to care for them while you are alive, even if you were incapacitated and unable to make any of your own decisions.
Misconceptions about Wills
People have been led to believe a Will is the centerpiece of an estate plan, and is all they need to pass down their assets. We’ve seen this in the movies for decades. For example in the mystery - thriller Knives Out starring Jamie Lee Curtis and Daniel Craig with the famous reading-of-the-Will scene.
A Will brings consequences people don’t understand
Attorneys who draw-up Wills have a responsibility to explain the probate process to their clients including how long it could last and the potential costs. But for whatever reason some people aren’t listening and continue to rely on Wills as stand alone documents. This is what leads to a probate court mess for their loved ones.
The comprehensive solution: Living Trusts
You actually have more control over protecting yourself, your wealth, and the people you love than you know. By creating a comprehensive estate plan in Arizona that includes a Living Trust, your estate could avoid probate court and all of the unnecessary costs. Your assets could be passed down to who you want when you want. A Living Trust also protects you if you become incapacitated. The people you handpicked to manage your finances and oversee your medical care would have authority to make decisions on your behalf if you were incapable of making them on your own.
RJP Estate Planning - Oldest and largest estate planning firm in Arizona
RJP Estate Planning can offer you a simple and affordable solution that could protect you now and your family’s future and finances when you pass away. RJP Estate Planning is the largest estate planning firm in Arizona and has helped more than 40,000 Arizona families since 1995.
A comprehensive plan to protect you and your loved ones
Your comprehensive plan will include your Living Trust, a Living Will, Financial and Medical Powers of Attorney, Medical ID cards, assistance with funding and notarizing your Trust, and settlement support for your family when it’s time to settle your estate.
RJP’s 65% discount on a comprehensive estate plan
For a limited time, RJP is offering a 65% discount on a comprehensive estate plan that includes a Living Trust if you are at least 60 years old.
Take control of your legacy before it’s too late
Don’t let your hard-earned assets end-up in probate court. Take control of your legacy today. To learn how you could protect yourself now and the people you love when you’re gone, schedule your free consultation with RJP Estate Planning by clicking here
About the author: Deborah Placet is Founder and Managing Partner of RJP Estate Planning. RJP is the largest estate planning firm in Arizona that has helped more than 40,000 families with their estate planning needs since 1995. Deborah has also been featured in Barron's Magazine, the world’s premier investing publication.
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