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Why Is Avoiding Probate an Important Estate Planning Goal?

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People typically begin their estate planning journey with a basic Will aimed at directing the distribution of their estate assets after death. Over time, however, a more sophisticated plan may be needed to address other objectives and goals. One of the most frequently added goals is to keep an estate out of probate. While probate fulfills a legal role, there are compelling reasons to avoid it whenever possible. The attorneys at Unsworth LaPlante, PLLC explain why avoiding probate can offer financial and practical benefits for your loved ones.

What Is Probate?

Probate is the court-managed process that typically follows a person’s death. It involves collecting and inventorying the decedent’s assets, paying off creditors and outstanding taxes, and distributing any remaining assets to heirs or named beneficiaries. If the decedent left a Last Will and Testament, the court verifies its validity and ensures that the directions it contains are properly followed. If no Will exists, the estate is subject to Vermont’s intestate succession laws, which outline how assets are to be divided among surviving legal heirs. Shortly after probate is initiated, an Executor is appointed, either using the decedent’s choice as evidenced in the Will or someone approved by the court in the absence of a Will. The Executor’s job is to oversee the administration of the estate, meaning they are responsible for managing estate assets, handling claims, and ensuring proper distribution. While probate exists to create an orderly and fair system for transferring wealth, it comes with several burdens that can negatively impact the estate and its heirs.

Reasons for Avoiding Probate in Vermont

Though probate is necessary in some situations, many people prefer to design an estate plan that reduces or eliminates the need for it. It helps to understand why probate avoidance is such a common estate planning goal though. Advantages of avoiding probate include:

  • Avoiding Delays: Probate can be a lengthy process, due in part to the fact that creditors are legally entitled to be notified that probate is underway and given an opportunity to file claims which creates a mandatory waiting period. Even simple estates can take many months to settle, while those involving complex assets, disputes, or legal complications may extend well beyond a year. During that time, beneficiaries often face restricted access to funds or property, which can cause unnecessary strain, especially if surviving family members depend on the estate for support.
  • Reducing Legal and Administrative Costs: The costs associated with probate, such as attorney fees, court costs, valuation fees for real estate or personal property, and payments to Executors or Administrators, can be significant and are typically deducted from the estate. These expenses reduce the overall inheritance passed to beneficiaries. In larger estates, or those involving disputes, the financial impact can be considerable. By avoiding probate, families are often able to retain more of the estate’s value.
  • Protecting Privacy: When a Will is filed with the probate court, it becomes part of the public record, meaning that anyone can view the details of your estate, including who inherits what and whether any legal challenges occurred. For individuals who value confidentiality, or who wish to prevent disputes or gossip among extended family, this public access can be troubling. Probate-free transfers help keep your affairs private and out of court records.
  • Avoiding Court Supervision: In a formal probate proceeding, the court may require approval for numerous steps in the administration of the estate. Selling real estate, settling debts, or finalizing distributions often requires judicial oversight. This can slow down the process and limit the Executor’s flexibility. Many families would prefer to manage these tasks on their own, outside the court’s direct supervision.

Vermont Strategies to Avoid Probate

Estate planning offers several tools that can be used to sidestep probate while still ensuring that assets are transferred efficiently and according to your wishes. In Vermont, several approaches are widely used, such as:

  • Revocable Living Trusts: One of the most effective options for avoiding probate is a revocable living trust. When assets are placed in a trust during your lifetime, they are removed from your probate estate. Trusts are private, flexible, and can be tailored to suit a wide range of family circumstances.
  • Joint Ownership with Right of Survivorship: Property owned jointly with another person, such as a spouse, can pass directly to the surviving co-owner when one person dies. For your interest in the asset to pass directly you must own the asset jointly with rights of survivorship.
  • Payable-on-Death (POD) and Transfer-on-Death (TOD) Designations: Financial accounts, including checking and savings accounts, can be designated as payable-on-death, while securities and real property may be transferred-on-death. These designations allow the asset to pass immediately to the named beneficiary outside of probate, assuming all paperwork is correctly completed and up to date.

Do You Have Additional Questions about Avoiding Probate in Your Vermont Estate Plan?

For more information, please attend one of our upcoming FREE seminars. If you have additional questions or concerns about avoiding probate in your Vermont estate plan, contact an experienced Essex Junction estate planning attorney at Unsworth LaPlante, PLLC by calling 802-879-7133 to schedule your appointment today.

Ellen LaPlante
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