To Your Wealth – Three methods of estate settlement

Estate settlement isn’t just about dividing money— it is the legal and financial process of wrapping up a deceased person’s affairs while honoring that person’s legacy. It involves navigating a web of legal, financial, and emotional complexities often during times of high stress. If you take your time, stay organized, and know when to seek help, you can minimize mistakes and carry out your loved one’s wishes as a final loving gift to their memory.

Understanding in advance the various methods for settling an estate is helpful and should be a part of your overall estate planning process.

Probate is a public estate settlement process

The most complicated and costly method is Probate. Many people think that by having a will they can avoid probate. This is not the case as a will must be probated to be validated by the court. Other situations that result in probate for estate settlement include when there is trust or joint ownership of assets, there are no named beneficiaries, or there is no will at all.

Probate is a public process that involves court supervision and, therefore, is a part of the public record. The public will have visibility to the amounts of your assets, debts and distributions to beneficiaries. Other disadvantages of Probate include the cost of attorney fees, court fees, executor fees and other administrative costs, which reduce the overall value of the estate. Probate can also take a long time to settle, depending on the complexities of the estate and if any disputes arise throughout the process.

A trust and Transfer-on-Death provide for private, faster estate settlements

Having a trust or Transfer-on-Death (TOD) designations on accounts can significantly speed up and simplify the estate settlement process.

A Revocable Living Trust not only avoids probate, but they are private, so asset distribution remains confidential. They also provide for easier continuity as a trustee can step in immediately to manage or distribute assets to heirs rather than waiting for the courts to approve. Trusts can also dictate when a beneficiary receives distributions from the estate and can include real estate, bank accounts, investments, business interests and more, as long as those assets are titled into the name of the trust.

Transfer-on-death designations transfer assets to named beneficiaries upon death. These include assets like bank accounts, brokerage accounts, and vehicles. Some states include TOD for real estate. TOD allows for a simple and easy process, typically requiring only a death certificate to complete the transfer. We always recommend requesting at least 10 copies of the death certificate to help facilitate TOD distributions. Because TOD accounts pass outside the will or a trust, it is absolutely critical to ensure beneficiary designations are up-to-date and do not conflict with your trust or will. TODs should also be periodically reviewed and updated after life changes such as marriage, divorce, and births.

How FSG can help in the estate settlement process

FSG is your fiduciary partner through all of life’s transitions. Here are some of the ways we can help you ensure your loved one’s estate is properly settled.

• Talk through the estate settlement process and timeline and meet/speak with you as often as you need throughout the process to help address questions, outstanding items or other concerns
• Determine if an attorney needs to be involved and help coordinate a meeting
• We will handle or work with you to:

• • Create an inventory of assets.
  • Review beneficiary designations for retirement accounts, life insurance, and pensions.
  • Assist with filing life insurance claims.
  • Review required minimum distributions (RMDs), if applicable.
  • Open any necessary new accounts and distribute assets to beneficiaries.
  • Determine who will file the appropriate tax returns.

We understand how overwhelming things can be when a loved one passes. It is a time to be with your family and process your loss rather than worrying about all the things you’ll need to do next. Our goal is to support you through the estate settlement process and help make things go a little easier during a naturally difficult and emotional time.