Navigating the world of estate planning can often be a daunting task for your clients. One of the most critical aspects is understanding the probate process. In Missouri, the process if pretty clear cut, thought it can appear complex. This article aims to break down the Missouri probate process into manageable chunks, with simple examples for you to relay to your clients.

What Is Probate?

Probate is the legal process through which a deceased person's estate is managed and distributed. The process ensures that any outstanding debts and taxes are paid, and the remaining assets are distributed to the rightful heirs or beneficiaries according to the decedent’s will. If there's no will, the assets are distributed as per the intestacy laws of Missouri.

The Probate Process

The probate process can be intricate and time consuming. That is why most advisors warn their clients about the need for proper estate planning. With GoGo Estate your clients can purchase a plan to hopefully avoid the pitfalls of probate. However, if they fail to do that, or if they don't conduct estate planning at all, then here is a simple breakdown of the probate process.

Step 1: Opening the Probate Estate

In Missouri, the probate process begins when the executor, usually named in the will, files a petition to open probate in the county where the deceased lived. If there's no will, the court appoints an administrator. Let's consider an example, where a client named Mr. Smith has passed away. His will names you, his financial advisor, as the executor. You would file a petition with the court in Mr. Smith's county of residence, initiating the probate process.

Step 2: Notification of Interested Parties

After the probate is open, you must notify all interested parties. This includes all beneficiaries named in the will and potential heirs if there isn't a will. Additionally, you'll notify creditors so they can make claims on the estate. In our example, Mr. Smith's will identifies three beneficiaries. You would notify each beneficiary about the probate process.

Step 3: Inventory of the Estate

The next step is creating an inventory of Mr. Smith’s assets. This includes bank accounts, real estate, investments, personal property, etc. You'll also need to have these assets appraised to establish their fair market value as of the date of Mr. Smith's death.

Step 4: Payment of Debts and Taxes

The executor or administrator is responsible for settling any of the decedent’s outstanding debts, including final bills and taxes. Mr. Smith, for example, may have had outstanding medical bills and personal loans. These are paid from the estate assets. If the estate owes more than it contains, Missouri follows a priority system for paying creditors.

Step 5: Distribution of the Remaining Estate

After the payment of all debts and taxes, the remaining assets are distributed according to the will's instructions. If there isn't a will, the Missouri laws of intestate succession come into play. For Mr. Smith, if his will states that his estate should be divided equally among his three children, that's exactly what you as the executor would do.

Is Probate Always Required?

Probate is not always required in Missouri. If the total value of the decedent’s assets, not jointly owned, is less than $40,000, a Small Estate Affidavit can be requested. Consider a different scenario where Mr. Smith’s estate was valued at $30,000. In this case, an interested party could have requested a Small Estate Certificate instead of going through the full probate process, saving time and effort.

Closing Thoughts

As a financial advisor, your role goes beyond offering financial advice; it extends to guiding your clients through these challenging life processes, ensuring that they and their loved ones are financially secure. Understanding the probate process is one more way you can add value to your client relationships. GoGo Estate wants to help your clients avoid probate by offering them to purchase various Trust Plans and other instruments. When properly utilized, these plans can help your clients avoid probate and ensure a smooth transition after their death.