The New York estate administration process can prove cumbersome and expensive. With this in mind, there are lawful ways through which a person can create an estate plan that avoids the probate process completely. There are a few important benefits that are realized by avoiding probate:
- Saving money
- Avoiding taxes
- Saving time
Avoid probate and save money
When it comes to estate administration, one the most significant benefits of avoiding probate is money savings. The stark reality is that the New York probate process has the potential for being a costly endeavor. From retaining legal counsel to other costs that are inherent in probate, developing an estate plan that avoids the process altogether allows for more money to end up in the hands of desired beneficiaries.
Avoid probate and lessen or eliminate tax obligations
Speaking of saving money, the second benefit of estate planning with an eye to avoiding probate is lowering or eliminating amounts that are spent on federal and state estate taxes. Thoughtful estate planning permits a person the ability to thoughtfully and lawfully take advantage of avenues that minimize or eliminate federal and state tax obligations that might otherwise exist.
Faster distribution of assets
Finally, by avoiding the probate process, a faster distribution of a deceased person’s assets is nearly always accomplished. For example, if a trust is created as part of an estate plan, the beneficiaries’ financial interest in the trust can come into existence before or at the moment of a person’s death.