The probate process can cost an arm and a leg and be very lengthy. It’s something that no one wants to deal with, however, most people will have to at one point or another in their lives. Learn more about what to expect during the probate process in this latest post!
If you are dealing with the loss of a loved one and their house has to go through the probate process, you will likely find that it is much more expensive and takes longer than you thought. While you might expect to receive money, the opposite may be true. In some cases, the probate process can be very expensive and take up a lot of time. In our latest post, we will discuss four costs to expect during the probate process in Pittsburgh to help you best prepare for it.
When someone passes away, the executor of their estate will need to find and pay all of the deceased’s debts. In many states, the executor of the estate is required to publish a notice of death in a local publication, notifying any creditors not known to the courts or to the executor. These creditors will have a limited time to file a claim against the estate for amounts due to them. It is only after all debts have been paid that the executor of the estate is free to distribute assets left over.
If an inheritance has to go through the probate courts, there are going to be some costs associated with that. The executor has to validate the will, submit a petition, and ask the courts to review all assets, debts, and taxes owed. There will likely be a number of hearings to discuss the validity of the will, hear any objections, and to make sure all assets are distributed as they should be. As such, the court will charge a number of fees while facilitating this process. These fees vary case by case and state by state. If you are dealing with a larger estate, you can expect these costs to be much higher than if you were dealing with a smaller one.
Even after passing, you can’t avoid paying taxes. The executor of the estate must file any pay income taxes for the year of the decedent’s death. They must also check to see if any estate taxes need to be paid. If so, these taxes are typically due within nine months of the deceased’s passing. The property taxes for any real estate owned will need to be kept up to date in order to avoid foreclosure/tax sale of the property.
The cost of a probate attorney can run up to 5% of an estate’s value. While you might not always need an attorney to represent you, it makes the process go much more smoothly. When you hire an attorney, you can be assured that all debts, creditors, and beneficiaries will be properly taken care of.
In order to avoid probate, an individual can either set up a trust, own property in joint tenancy with the right of survivorship or set up beneficiaries when creating the assets. This is particularly true with stocks and bank accounts. By avoiding probate in Pittsburgh, you will be able to avoid a number of the costs people often face.
When a property is in probate, it can be tied up for months. In addition to the costs above, if a property is in question, the executor of the estate will need to pay the taxes, insurance, and mortgage on the property to keep it from going into foreclosure.