A lack of knowledge about probate could be a problem
of ConsumerAffairs
Millennials may be struggling now but personal finance experts say this generation is about to become quite wealthy when they inheritestates from their baby boomer parents.
But first, those estates may have topass through a process called probate, and a new study says most Americans are completely unaware of how that works.
Trust & Will, a digital estate planning and settlement platform, has issued a report that it says unveils a startling lack of awareness surrounding the probate process among millions of Americans.
Probate is the legal procedure for estate settlement and is handled differently state to state. The report said only 65% of Americans understand its definition, while 19% remain uncertain. The study reveals a significant gap in understanding, with 35% admitting to not comprehending the process at all.
For example, the authors found that most Americans vastly underestimate the duration and costs associated with probate. Despite the average timeline of 20 months, only 2% of respondents believed it would take that long, while 37% were uncertain of the timeline.
At the same time, 56% have no idea about the costs involved, with 10% expecting it to be $1,000 or less, and only 4% anticipating costs to exceed $10,000.
Professional help
About 40% of people in the survey expect the process will be "somewhat difficult" to manage and a staggering 65% of Americans would seek help from a probate attorney, highlighting the reliance on professional assistance during the complex process.
Trust & Will says that probate can be avoided in most states with proper estate planning. But the study found that half the people in their survey were unaware if they live in a state or county that requires probate to settle an estate.
"As the United States stands on the brink of the largest intergenerational wealth transfer in history, our latest study reveals a concerning lack of preparedness among Americans regarding the probate process," said Cody Barbo, founder and CEO of Trust & Will.
"For most Americans, the inheritance process is far from easy - and the lengthy and costly probate process can make it even more difficult, especially as people are grieving the loss of a loved one.
With an aging population that isn't fully prepared for end-of-life via estate planning, Barbo says millions of Americans will likely be plunged into the long, expensive, and emotionally draining process of probate.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-07-17 14:23:51
