Why death without a plan costs more time and money

(Aging Untold) — Terry Miller’s sons weren’t ready to say goodbye to their father, a fun-loving fisherman with a strong moral code. But they were even less prepared for what followed – years of financial headaches and probate court nightmares.

Many people who die with assets — a house, a car, a savings account — are forced into a local legal proceeding whereby a judge oversees the distribution of those assets and essentially forever closes the deceased’s financial life.

The process is designed to protect those assets from theft or greedy relatives or friends with no legal right to any of the deceased person’s money or property.

But probate court rules and regulations are tedious, cumbersome and slow, and often leave bills unpaid. It also can harm the surviving spouse when electric bills or car payments go unpaid.

Probate laws vary widely from state to state and can also leave estates vulnerable to identity theft, InvestigateTV found.

Terry’s health started to decline and he died of complications from a urinary tract infection on June 26, 2021. He was just 73.

Miller’s sons believed his estate would be easily settled. He lived a modest, middle-class life and, as a planner, had taken steps to prepare for his passing.

“We thought, OK, once we find the will, this can all be sorted out,” his son, Joe, said.

Despite Terry’s careful planning, Joe and his brother soon found themselves caught in a legal dilemma. All of Terry’s assets, including his home and bank accounts, were immediately frozen after his death. Nothing could be accessed. No outstanding bills could be paid.

Joe fondly recalls his earliest childhood memories — fishing trips with his dad and a Christmas train that Terry built from plywood. He was a die-hard Kansas City Royals fan and a man with strong values.

But Joe’s grief carries a heavy burden because of the requirements of probate court as he continues to go through the process.

“We need to grieve properly and we cannot grieve properly if these things are not worked out,” Joe said.

What is probate?

Laure Poche, an estate planning attorney in Louisiana, has dedicated her career to helping families navigate the probate process. She’s encountered many clients who don’t fully understand what probate is or how it works.

“When somebody dies, this is the way I explain it to my clients: it’s almost as if an imaginary camera takes a picture of any property titled in ... that person’s name at the moment of death,” Poche said.

Probate is the legal procedure that takes place after someone dies, in which a court supervises the distribution of assets to the rightful heirs. During probate, all assets must be located and evaluated. These assets may include:

• Real estate
• Timeshares
• Stocks
• Bonds
• Mutual funds
• CDs
• U.S. savings bonds
• Checking and savings accounts
• Vehicles

Unless the deceased has an estate plan that includes a trust — a legal arrangement that governs your wishes for how and when to transfer your assets while you’re still alive — probate is required in all 50 states, InvestigateTV found.

The growing complexity of probate

According to estate lawyers like Poche, probate has become more complicated and time-consuming in recent years.

A will — usually a written document that covers the basics of who will be responsible for your children and what should happen to your assets after you are gone — alone is not enough because it doesn’t prevent probate court.

Assets cannot be released until probate is complete. Banks have grown increasingly cautious, often refusing to release funds without a final court judgment backing the claim.

Without the proper court documentation, a deceased person’s assets remain out of reach.

InvestigateTV contacted probate lawyers from all 50 states to learn more about the probate process and state-specific regulations. The research found that the length of probate and the costs involved often depend on both the value of the deceased’s assets and where they lived.

In 25 states, including Alabama, Florida, Colorado and Kansas, probate typically takes six months to a year. However, in states like California, Georgia and Maryland, the process can stretch up to two years.

Factors like the amount of assets, the efficiency of the court system and family disputes can also contribute to delays in the process.

Trusts are a possible solution

Experts encourage people to take action before the unexpected occurs. Creating a will or living trust can protect families from the lengthy and costly probate process.

Lawyers advise consumers to take proactive steps to protect their loved ones by connecting with an estate planning attorney who can guide them through the process.