by Chelsea Springli 
There’s a lot of misinformation surrounding wills and probates. Many avoid the topic altogether. Who gets your money when you die? How long does probate take? What happens if you don’t have a will?
Read on to hear five common will and probate myths and the truth about the topic.
Myth #1: If Someone Dies Without a Will, the State Gets Everything
There are lots of reasons to write a will but worrying about the state snatching your family’s inheritance is not one of them. If you die without a valid will (the legal term for this is dying “intestate”), then state law kicks in.
Generally, in state law, your spouse and children are first in line to inherit. The rules vary from state to state. However, in some states, a surviving spouse and minor children share the deceased parent’s assets.
So, do assets ever go to the state? Yes, but only when no relatives can be found. Creating a valid will can help ensure your assets are distributed according to your wishes rather than relying solely on state law. Even if the state won’t get your money, you still want to decide who does. Don’t leave that decision up to state law. Creating a will is an important part of an estate plan and can help reduce uncertainty for loved ones.
Myth #2: It Takes Years to Probate an Estate
Most estates don’t take years and years to resolve. Usually, the only delay is the period, mandated by state law, that gives creditors time to file claims. The length of the creditors’ claim window varies from state to state. It usually starts when the local paper publishes the notice of the probate proceeding and runs from three or four months on the short end to a year on the long end. In Missouri, it’s just over six months.
Myth #3: The Cost of Probate Will Eat Up All of the Estate Assets
There are a lot of scary stories out there about how much probate costs. If you believe the worst of them, you might think that your family won’t get a thing once the lawyer fees and court costs are paid. Fortunately, that’s just not true. Some assets may pass directly to beneficiaries outside of probate, depending on how they are titled and whether beneficiary designations are in place.
If you live in a state where attorneys can charge extra-high fees, make sure your executor knows that those fees aren’t mandatory. The purpose of probate is to transfer the estate, not to spend it all on legal fees. Probate costs vary based on the complexity of the estate, state law, and the services required.
Myth #4: I Don’t Have to Leave Anything to My Spouse
Some couples decide not to leave each other a significant amount of assets. This is especially true if each one owns some assets independently. They may agree that each will leave most assets to his or her children from a previous marriage, or to a charity. Many couples in second marriages, especially if they married later in life, are primarily concerned with providing for children from a previous relationship.
State laws may provide certain rights to surviving spouses, so it is important to understand how estate planning decisions may affect both spouses.
Myth #5: The Oldest Child is Entitled to Be the Executor of the Parents’ Estate
Just because they are the oldest, that doesn’t mean they carry any weight when it comes to serving as the executor (personal representative) of a deceased parent’s estate. If the deceased person named an executor in his or her will, the court would appoint that person unless there’s a very good reason not to. This isn’t common but could include reasons including a felony conviction or a disability that makes it impossible to do the job. If there isn’t a will or the person named as executor in the will cannot or does not want to serve, then the court will appoint someone.
The person selected as executor is typically chosen based on their ability to manage the responsibilities of settling an estate rather than their birth order. The reason to choose one sibling instead of another is up to the person with the estate. It’s a good idea to talk to your family about who is the executor of the estate. That way, no one is caught off guard with the responsibility when that time comes.
It’s Not a Myth that We’re Here for You
At Alltru Credit Union, we care about your future and are always here to help. We hope this information about will and probate myths has been helpful. If you need help managing your retirement income to make the most of your money for you and your family, contact a financial planner.
