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Probate is a legal process that can be time-consuming and costly, involving the settlement of your estate and distribution of your assets under court supervision.
Certain estate expenses are tax deductible on IRS Form 1041. The executor must file this form for estates that earn over $600 in income or have a nonresident alien as a beneficiary.
But if your estate only ends up being worth $550,000, you're limiting the amount of money your remaining beneficiaries get. A better approach would be to distribute your assets in portions.
Estate planning may involve a will, trusts, beneficiary designations, powers of appointment, property ownership (for example, joint tenancy with rights of survivorship, tenancy in common, tenancy by the entirety), gifts, and powers of attorney (specifically a durable financial power of attorney and a durable medical power of attorney).
Upon termination under these provisions, the trustee is to distribute the funds "in a manner consistent with the purposes of the trust." [121] Typically, this would mean outright distribution to the qualified beneficiaries of the trust in proportion to the actuarial value of their interests. [122]
The probate court will then oversee the process of distributing the deceased's assets to the proper beneficiaries. A probate court can be petitioned by interested parties in an estate, such as when a beneficiary feels that an estate is being mishandled. The court has the authority to compel an executor to give an account of their actions.