When someone passes away, the question of whether or not probate is required often arises. Probate is a court-supervised process for distributing the assets of an estate and can be a time-consuming and costly endeavor.
In Missouri, probate is not always necessary, but there are specific situations that make it unavoidable. Understanding when probate is required and how it affects your estate can help you make informed decisions during the estate planning process.
What Triggers Probate in Missouri?
Probate is required in Missouri when an individual dies owning an asset for which there is no joint owner and no beneficiary designated. This typically includes assets like real estate, bank accounts, or personal property held solely in the deceased's name. During the estate planning process, attorneys can advise clients on the best ways to structure ownership of assets, as well as beneficiary designations, in order to eliminate the need for probate. Proper planning can save time, money, and potential stress for your loved ones in the future.
The Full Estate Proceeding: Estates Over $40,000
If probate is required, Missouri law states that when the value of the estate exceeds forty thousand dollars, a full estate proceeding is necessary. This process can take up to a year or longer to complete. Additionally, Missouri law provides a statutory minimum fee for attorneys and personal representatives based on the estate’s value. These fees, along with other costs of administering the estate, reduce the overall inheritance that heirs receive compared to if the assets had passed outside of probate.
Small Estate Proceeding: Estates Under $40,000
For estates valued at forty thousand dollars or less (after subtracting any debt of the decedent), Missouri allows a small estate proceeding. This process is typically quicker than a full estate proceeding but still incurs court costs, attorney fees, and potentially publication costs depending on the estate's value. Although the small estate process is faster and less complicated, the result remains the same: the heirs of the estate will receive less than they would have if probate had been avoided.
Planning To Avoid Probate
Whether your estate is large or small, probate can create delays and additional expenses for your heirs. However, with careful planning, probate can often be avoided by structuring your assets properly through joint ownership and beneficiary designations. Consulting an experienced attorney during the estate planning process is crucial for minimizing the probate burden and ensuring your wishes are carried out efficiently.
At Northland Elder Law, we specialize in helping clients throughout the Kansas City metropolitan area and the state of Missouri protect their assets and their loved ones. Contact us today to learn more or to book a consultation.
Looking for more information about the probate process? You can find detailed guidance in the Probate Procedure Manual from the 16th Circuit Court of Jackson County, Missouri. Click here to access it.
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