Many people wonder about the best way to handle their assets after they're gone. It is common that many believe that Idaho trusts are better than probate, but most don't truly know.
We will walk you through the reasons and hopefully clear up some misconceptions about which is best for most people in Idaho. You may also be wondering what the true process might be to set everything up in advance.
Have questions or ready to start planning your family's legacy? Reach out to us at 208-406-9885. At Snake River Law, we’re here to listen and help you create an estate plan that truly reflects your wishes. Let’s talk and make sure your family’s future is secure.
Probate in Idaho is the court-supervised process of validating a deceased person's will. The assets are then distributed to beneficiaries.
Idaho probate becomes necessary when a deceased person owned assets worth more than $100,000 in their name. Probate is required when they owned real estate worth any amount in their name.
The probate process in Idaho involves several steps. This includes filing a petition with the court. You will need to appoint a personal representative.
You'll also have to notify creditors and beneficiaries. You also have create and inventory of all of the assets in the estate. All valid creditor claims will need to be taken care of as well as paying applicable taxes.
After all this you will have to distribute remaining assets. Once things are done, a final accounting has to happen. You can request release of oversight at the end.
The probate timeline typically ranges from six months to one year. It depends on the situation. Assets may be frozen until distribution.
Probate comes with expenses. This includes filing costs for things such as court appearances and submissions.
Probate expenses also can include attorney's fees for counsel. Then, you also need to factor in compensation for a personal representative that took care of estate-related activities.
There will be costs of putting notices for estate creditors in the newspaper. There will also be payments to appraisers to properly record all real estate holdings.
| Expense Type | Estimated Cost |
|---|---|
| Court Filing Fees | Varies |
| Attorney Fees | $300 to $3,000+ |
| Personal Representative Fees | Varies |
| Publication Costs | Varies |
| Notary Fees | $5 per document |
Probate records are public. This means that private family information will get out.
Trust administration manages assets held within a trust. It follows the trust document's terms.
This happens outside of court. It begins right after the death of the trust's creator.
Trust administration involves notifying beneficiaries. You'll still have to prepare an inventory just like a will.
A trustee is appointed. This trustee manages assets according to the trust's instructions.
The debts still have to be paid. Taxes are another thing that must still be taken care of.
The trust document guides how assets get passed down. Accurate records are very important here.
Trust administration can often be completed faster than probate. Many are completed within three to six months as there are typically less required duties. Court approval is also not necessary.
Trusts give much better privacy. This helps maintain discretion for many reasons.
Trust terms and asset distributions remain private. A trust document, unlike a will, does not become public.
Avoiding probate saves time. It also helps maintain family matters in-house versus on a government filing. Control over the timing of distribution of a person's property is an additional key benefit.
Trusts often come with fees. Things such as trustee fees are the norm in trusts.
Attorney's fees can still exist too. Professionals may also still be required to properly appraise things like Real Estate holdings.
Trusts can be created to reduce estate taxes. Certain types of trusts shelter assets from heavy taxation.
Trusts provide planning and control over an inheritance. The assets that are inside a trust remain out of court for review, allowing many potential family disputes to stay at bay.
People sometimes set up trusts to care for a minor child. Idaho defines minors as those under 18 years of age.
Parents can create trusts for their young children. Trusts allow disabled beneficiaries to receive an inheritance. The trust protects these vulnerable people and their futures.
Choosing the right approach can be stressful for many to come to a final conclusion on what path to take. Below is a block quote comparison to showcase how they work. Understanding the timing differences between wills and trusts helps you decide.
A will takes effect after death, and wills have a significant dependence on the court.
With a trust, you set the timeframe in advance that fits your timeline and life plans, and your wishes are honored. Trusts can avoid all court involvement with trustees privately managing assets.
Deciding on whether or not idaho trusts are better than probate is not one size fits all. Several things are still required in either scenario and there are clear advantages to both strategies.
Estate plans should include flexibility for possible future changes. Life changes like divorces or second marriages will have an impact on your end of life directives. A seasoned attorney will plan for many such future challenges in a proactive manner. It can often depend on estate size. But ultimately the specific life details are what needs to guide decisions to use a will or a trust.
For instance, an 82-year-old woman living in Coeur d'Alene was the head of a well-respected law practice there. She made better than expected decisions that brought much gratitude.
She started by laying out her intentions for those close to her first. Second, she worked backward through her assets, placing special emphasis on protecting what was rightfully hers and setting guidelines. Her children still benefitted.
Trust administration is generally quicker than going through traditional channels because there's often less red tape.
Idaho trusts are better than probate in many situations. Both a trust or will offer control to pass on your life’s assets.
Trusts offer advantages like avoiding court and maintaining privacy. But it is essential to think about personal assets, planning for end of life intentions, as well as the goals one has.
Getting proper estate planning help is important, because the right answer depends completely on your needs and not others. If a situation feels too complex, it often makes sense to have professionals review and assist in a person's situation.
Mark R Petersen is an Idaho estate planning attorney with 20 years of experience creating family estate plans that empower families to succeed. Mark focuses his practice on trust planning helping clients achieve their goals, avoiding probate and unnecessary court fees, and ensuring ease of transition when a loved one passes. See more about Mark here. Call us now at 208-406-9885 to schedule your family legacy planning session.