Florida Law Firm: IMMIGRATION | ESTATE PLANNING, WILLS, TRUSTS, REAL ESTATE, TITLE CLOSING, BUSINESS, DIVORCE

Why do we need an Estate Plan?

That’s the big question. To answer this, we has to discuss four smaller questions.

I – What is Probate?

– Probate is a procedure that allows a court to divide a deceased person’s property among family members.

– If a person dies without specific instructions on how to divide the estate among their descendants, the family must submit the estate to the court and ask the court for approval of the division. Court decisions are based not only on family approval, but also on other factors.

– The court system is where the judge examines the files and appoints an Executor to oversee the probate process. The Executor collects all information about the property, debts, creditors, family members, etc. of the testator, and investigates and understands the situation. He then announces the deceased’s death in the local newspaper and invites other people (creditors, banks, liens, friends, family, doctors, funeral homes, etc.) who want to challenge the estate to come forward. The Executor will also send notice to all known creditors of the testator.

– If people then go to court to challenge their estate, the court will take longer to resolve those challenges.

After all tasks are completed, the rest is distributed among descendants according to family circumstances.

II – What are the Pros and Cons of Probate?

→Advantages

1 – The deceased does not have to think about how his property should be divided. Let someone else do this job.

2 – Who will help the deceased in this process. A judge who has no feelings or empathy for the deceased and does not understand the deceased’s wishes and aspirations. The judge will divide his property based on the judge’s opinion, not the deceased’s wishes.

→Disadvantages

1 – Pay taxes: If the estate exceeds $12 million and the deceased died before his December 31, , a 40% federal inheritance tax will apply. This number is subject to change after December 31, .

2026 / 2026

2 – Costly:

    3% of the estate’s value

    Other costs:

    — Court Fees: There are costs associated with taking a case to court for probate hearing. Courts are costly and expensive.

    — Attorney’s Fees: the estate have to bear the costs of defending against claims from creditors, banks, liens, hospitals, friends and family. This is to protect the estate of the deceased so that there is something left for the inhabitants after all disputes have been resolved.

    — Other costs: There are also other costs associated with the case: appraisal fees, land survey fee, accounting fee, probate bond, publication, filing, disputing, discovery, litigation, etc.

3 – Time Consuming: It will take months, years, or decades to solve all the challenges. Families can rest only when all challenges are resolved.

4 – Lost all assets that the decedent worked hard for:

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