The ABCS of probate

It’s impossible to avoid death, but we may avoid complex probate issues by having a valid, properly executed will. Here’s a closer look at probate, the legal process of settling and transferring the estate of someone who has died.

During the probate process, the deceased person’s will, if there is one, is validated, and one or more executors (personal representatives) are appointed to oversee the process and settle the estate. All assets are identified and any debts owed are paid, when possible. Any taxes owed are paid, too. What’s left is then distributed according to directions in the will. If there’s no valid will, assets will be distributed to the next of kin according to state guidelines.

If this all sounds complicated and seems like a lot of work — yes, it sometimes is. It can be lengthy and costly, too. But in many cases, the probate process is quick and inexpensive. Much depends on which state or states are involved and how valuable the estate is. In planning for your own heirs, you may be able to keep costs down by holding some assets in a revocable living trust, but that’s not always necessary.

Note that not every asset has to go through probate: Life insurance proceeds typically don’t, and assets in retirement plans generally go directly to named beneficiaries. Jointly owned real estate and financial accounts often pass directly to a surviving spouse.

There’s much more to the probate process than this, of course, and you’d do well to learn more about it and about estate planning in general — perhaps via “J.K. Lasser’s New Rules for Estate, Retirement, and Tax Planning” by Stewart H. Welch III and J. Winston Busby ( Wiley, $25), or “Get Your Ducks in a Row: The Baby Boomers Guide to Estate Planning” by Harry S. Margolis (Ducks in a Row Publishing, $19).

It’s a good idea to consult a financial adviser to help you plan for retirement and beyond; you can find a fee- only one near you via NAPFA.ORG. Estate-planning attorneys can also help.