Northington Blog

PlanForComfort: The Probate Story- A Case Study for a Million Dollar Client

ProbateAs a CERTIFIED FINANCIAL PLANNER™ Professional, and principal owner of Northington Investment Group, I am certified in Estate Planning. In fact, it’s one of the five principals of financial planning that we review, identify gaps, and create a plan to close those gaps. We are not attorneys, nor give legal advice, we do partner with them to make sure our clients have the legal documents in place that allow our clients to experience financial comfort while their living and know their loved ones will do the same when they are not.

What is Probate?

Probate is a legal process that takes place after someone dies. It includes: proving in court that a deceased person’s will is valid (usually a routine matter) identifying and inventorying the deceased person’s property.

How long does it take? (T) Time

The probating of an estate can take nearly a year to complete. It can take even longer when there are uncommon assets requiring special consideration.

Are there Attorney Fees? (A) Fees

Ark. Code Ann. 28-48-108, Compensation for Probate Attorneys, $1,000,000 Estate Case Study.

  • Meet Bob and Sandy, they have worked very hard and accumulated a Million dollar estate. On advice from their Attorney, they were told all they needed was a Will to complete their Estate Planning. What Bob & Sandy were not told is that their Estate would go through probate and it would take on average a full year to probate their estate. Based on Arkansas Statue ARK. Code Ann 28-48-108, their probate attorney would earn a fee of $26,550 for legal services rendered.

Is Probate Private? (P) Public Knowledge

The answer to this question is NO. A simple trip to the courthouse can produce a full disclosure of all your personal financial matters. Personal and Business.

How to Avoid Probate? (A) Avoid, the time, the attorney fees, the public knowledge.

Produce a popular estate planning tool called the revocable living trust. A revocable living trust is a popular estate planning tool that you can use to determine who will get your property when you die. Most living trusts are “revocable” because you can change them as your circumstances or wishes change. Revocable living trusts are “living” because you make them during your lifetime. Clients experience financial comfort when they can start working on Revocable Living Trust immediately after death, they have no Attorney fees, and your estate stays private.

We’re Northington Investment Group, the place to be to get educated, feel empowered, and build a life where you can experience financial comfort. Stephen Northington, 501.993.0167, Stephen.Northington@LPL.com

All examples are hypothetical situations and your situation may be different.