Dispelling the Probate Court Myths

Many common misconceptions exist surrounding the Probate Court process, often spread by companies promoting Living Trusts.  Such companies often try to convince a consumer to buy a Living Trust solely to avoid Probate Court.  While avoiding the costs associated with Probate Court is often beneficial, there are many ways to do this, most of which are simpler and less costly than having a Living Trust.  The myths and corresponding truths below will help you gain a better understanding of the real nature of Probate Court and the many options available for avoiding it.

Myth:  “Probate Court can tie up the estate for years.”
Truth:  An estate generally must stay open for six months to allow creditors to make any claims they may have against the estate.  An estate may also stay open to pay any estate taxes, which are due nine months after the date of death.  It is uncommon for an estate to stay open for much more than this length of time.  The efficiency of the Probate Court process is mostly dependent on the executor’s timeliness in submitting the required paperwork, not on the efficiency of Probate Court itself.

Myth:  “A Living Trust is the best way to avoid Probate Court.”
Truth:  There are many ways to avoid Probate Court, and most of them are more efficient and less costly than having a Living Trust.  For example, designating beneficiaries on your assets will ensure that these assets do not have to pass through Probate Court.  (See How to Avoid Probate Court for more information.)  Unfortunately, some companies selling trusts use scare tactics and misinformation to sell their products.  They position the Living Trust as a panacea for estate planning and make inaccurate claims about the costs and procedures involved in Probate Court.  (See Is a Living Trust Right for Me? to learn more about Living Trusts and in what circumstances they are truly beneficial.)

Myth:  “Probate Court costs a lot of money.”
Truth:  Probate Court costs are limited to small filing fees, regardless of the size of the estate.  In Hamilton County, Ohio, the cost is usually $225 for any full estate.  However, the largest estate expense is typically attorney fees and executor fees, which may depend on the amount of assets in the estate.