What is Probate?
Simply stated, probate is the legal process of transferring the title to assets held by you at the time of your death to those that survive you. The probate court presents a forum in which parties who claim an interest in your estate may be heard. After the validity of each claim has been determined, lawful claims against an estate will be paid before beneficiaries receive any assets. If you have a will, your assets will be distributed in accordance with the terms of your will. If you do not have a will, your assets will be distributed according to applicable state laws.
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What happens if I don't have an Estate Plan? 
Even if your children know how you want your assets distributed upon your death, your wishes must be written down and properly executed in order to avoid having state laws control the distribution of your assets. Without an estate plan, you have chosen to allow a probate court to appoint an administrator for your estate whose purpose it is to collect all of your assets, pay lawful claims against your estate, and then distribute the remaining assets to your heirs as determined under state law.  In other words, you lose control.

A proper estate plan works to preserve the assets of your estate. Additionally, an estate plan ensures that you retain control of your assets by choosing who will represent your estate, who will provide care for your loved ones in the event that you are unable, what assets will be distributed to each beneficiary, and when the assets will be transferred to designated beneficiaries.
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How can I avoid Probate? 
Quite frequently, a simple will is all that is needed to properly distribute assets upon your death. However, many people mistakenly believe that having a will eliminates the requirement of probate. This is not true. The best method of avoiding probate is to set up a trust. By doing so, you make clear, written declarations concerning the distribution of your estate upon your death. Although similar in purpose to a will, a trust avoids probate because it is recognized as a separate legal entity. As such, a trust is able to hold title to property and act as a conduit to transfer ownership without court intervention.

In rare instances, formal probate may be avoided if you meet certain requirements. For example, in Arkansas, there is no requirement for a formal probate administration if you have no creditors at the time of your death and your assets subject to probate do not exceed $50,000 in value. When these and other requirements are met, then a less formal administration may be implemented.

Most individuals establish a trust in order to avoid probate. While it is also possible to avoid probate by restructuring the ownership of your assets, this often results in adverse tax consequences to all parties involved, the potential loss of assets to creditor claims, and accidental disinheritance of intended beneficiaries.
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Will creating an Estate Plan save me time and money? 
The lengthy probate process takes at least six months, but may last longer depending on the conflicts in asset distribution or liquidation that may arise in your estate. The probate process can be very expensive. This has the obvious effect of reducing the value of the estate that you pass along to your heirs. Attorneys' fees typically range from 3-5% of your total estate. Additional costs such as real estate agent fees, executor/administrator fees, accountant fees, appraisal fees, court costs and various other expenses can also add up to a hefty sum. Setting up an estate plan is easier than you may think. With the proper documentation of your assets and direction as to the distribution of such assets after your death, Fletcher Law Firm, P.A. can establish an estate plan that will:

1. Drastically reduce the amount of estate taxes due upon your death.
2. Avoid lengthy time delays and costs associated with the probate process.
3. Protect your assets and provide for their distribution to the intended beneficiaries at the proper time.

• Living Trusts and Estate Taxes: The Hype versus the Facts