Probate is the process during which the validity and authenticity of a person’s will are assessed. If you’re in the process of planning your estate in Pennsylvania, you should learn more about how probate can affect your retirement funds. When certain funds go through probate, it can take significantly longer for your heirs to receive the funds that you want them to have. Probate can also be expensive.
What can cause probate to go on longer?
One common mistake that people make is that they don’t correctly name their beneficiaries. If you name beneficiaries to your retirement funds other than your spouse, your marriage partner can file a claim so that they can have part of the assets, and this claim will send the retirement account into probate. If you fail to name beneficiaries, or if you name your trust or estate as the beneficiary, then your retirement funds will definitely go through probate, which will make matters more complicated, expensive, and time-consuming. And while you can name a minor as a beneficiary, they must have a legal adult who can manage it for them. If you don’t name this person, the funds have to go through probate and estate administration.
The Impact of Divorce On Estate Planning
If you go through a divorce, you especially need to update your estate plan for your beneficiaries. If you don’t, your assets could go to the wrong people or at least get caught up in probate. It’s essential that you remove your ex-spouse and name your new spouse if you want your new spouse to receive the funds when you pass.
Spare your loved ones of the frustrations and costs of probate by checking through your will or trust to ensure that everything is updated, correct, and thoroughly done in your estate plans.