Study: Most Americans Do Not Understand the Time and Expense of Probate
A recent report conducted by Trust & Will found that the average American has no concept of how time-consuming and expensive probate can be. The survey found that more than half of Americans have no idea what probate costs, about half think that inheritance happens automatically, and only around 2% of respondents knew how long it takes to settle an average estate.
By law, probate in Montana takes an absolute minimum of six months. That is if it is a simple estate, and everything goes smoothly. If there are difficulties with assets, beneficiaries, or creditors, an estate can take up to two years to settle.
An attorney can cost anywhere from 1%-7% of the total value of the estate to handle the probate case. If you have a simple estate – let’s say a house worth $300,000, an IRA worth $100,000, a small amount of cash in the bank, and a couple of vehicles and personal effects bringing your net worth to $500,000, a probate attorney operating at a standard 5% could eat up $25,000 of your kids’ inheritance! That does not even include funeral costs, taxes and accountant fees, personal representative fees, and other expenses.
Our experienced estate planning attorneys can confidently keep your estate out of probate – whether it is simple or complex. Your heirs will save the time, headache, and expense of probate. Our fees vary based on the complexity of your plan and wishes. But, we can confidently say that the amount you would pay us to plan your estate would be far less than the amount an attorney would charge to administer probate upon your death if you didn’t make a plan in advance.
