Probate: Realities And Myths

Basics Of Estate Planning In Virginia: Probate

Probate is essentially a formal notification of the passing away of an individual and the initiation of the legal process that follows. It plays a significant role in informing heirs about potential assets they may be entitled to inherit from the estate. Moreover, probate is the means by which creditors and debtors are made aware of an estate they may have an interest in, providing them with an opportunity to assert claims against it.

In the context of Virginia, as mentioned earlier, probate is a mandatory step for everyone. If you never have to go to court in your entire life, you will at least once — to have your estate probated, even if it’s just a simple recording of the will probate because everything’s already in a trust. This legal procedure ensures that all necessary parties are informed and provided with an opportunity to address their respective interests in the estate.

In Virginia, all assets are subject to probate, whether a house, bank, or investment account. If you are a resident of Virginia and have real estate property in another state, for example, it would also be subject to probate, albeit slightly differently. In these situations, the out-of-state assets would go through an ancillary probate estate, while the main estate account would be handled in Virginia.

Common Misunderstandings About Probate

A common misconception many have regarding probate is that having a trust will allow them to avoid it entirely. In Virginia, every individual, regardless of whether they have a will or trust, goes through probate.

Now, don’t get me wrong: having a will or trust makes handling the probate process in Virginia incredibly streamlined compared to if you don’t. Upon the owner of the estate passing away, a representative can simply go to court, present the will, and officially notify the government that the assets are safely held within the trust. This step essentially concludes probate since the necessary legal and tax obligations are addressed within the trust, leaving far less for your heirs to have to attend to after you pass away.

Conversely, without a trust, the probate process becomes much more involved. You would need to go to court to appoint an executor or administrator for the estate. Subsequently, an inventory listing all assets and an accounting detailing the financial transactions involving the decedent’s estate must be filed. These documents are examined by a commissioner of accounts in Virginia, a standard practice in each county.

Probate incurs fees, primarily applied to the inventory and accounting processes. The associated costs can escalate, especially for larger estates, potentially reaching substantial amounts. In contrast, fees are incomparably lower when assets are held within a trust. In instances where only a will needs recording during probate, the costs can be relatively modest, often less than a hundred dollars. On the other hand, large estates worth millions of dollars could easily cost in the tens of thousands of dollars to process through probate when all is said and done.

For more information on Handling The Probate Process In Virginia, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (703) 775-1678 today.