Farm Horizons • June 6 , 2016 • Page 11
sound mind , it must be in writing , signed by you and two witnesses , and you must intend for the document to operate as a will . In the will , you can spell out how your estate will be distributed and who the executor will be .
By having a will , certain items do not need to be probated . Probate is the legal process of settling your estate ; property is inventoried , debts are paid , and whatever is left over is distributed to your heirs . Probate must be initiated within three years after the decedent ’ s death .
Some specific items that are not subject to probate are joint tenancy property , joint bank accounts , payable-ondeath accounts , and life insurance proceeds .
Payable-on-death accounts are typically bank accounts , either checking or savings . There is a version of a payable-on-death deed or title transfer also . Life insurance proceeds usually have a designated beneficiary that the value of the policy will go to . You need to have a designated beneficiary listed , or it goes to your estate and that is what we are trying to avoid with life insurance .
In probate , the executor may pay debts and distribute the inheritance and manage the estate . Probate can be either informal or formal , which often depends on the size and complexity of the estate . In a formal probate ,
the judge will appoint a personal representative or executor , and the judge will be a part of the process .
Now that I have taken you on a tour of the estate process , you can , and need to make some decisions . Who do you want your estate to go to ? How involved do you want a judge to be in your estate ? Who would be your choice for an executor ? It is a good idea to name a primary and a second choice , in case the first choice is not available . How much planning do you want to do , or need to do for managing the estate tax liability ? How much of your estate / probate do you want to be public ? How will this impact the farm operation ? How will this impact your family and heirs ?
Or , do you wish to take the same road as Prince , and die without a will ? Remember , the State of Minnesota has a plan for you , and you or any heirs may not like that plan . It is your choice .
Contact me for more information concerning what you need to know and do before you go to an attorney . By doing , this you can save yourself considerable attorney fees .
Have a profitable day . •
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