As the penultimate post on this series covering when probate might actually be a strategic choice for your estate plan, I want to touch on probate's biggest strength.  The probate process is the fastest and most reliable way to know what creditor's claims must be paid and what can be ignored.

Using a small estate affidavit or even a living trust to transfer assets still requires that the decedent's creditors be paid.  Yet both of these techniques do not have any way to be sure that you know what claims are considered valid except to wait for a year after the date of death.  That year is the absolute cut-off for most creditors claims.  There are a few exceptions that go beyond that year but they are usually predictable and can be managed when administering an estate or trust. 

Let's say that Louise was involved in a car accident which killed her.  Her family would like to know once and for all whether the other person involved in the accident intends to sue claiming that Louise was at fault in the accident.  The family could wait a year or they could open a probate and give notice to the other party that starts a 4-month deadline for filing a claim.  If the other party got that notice and doesn't try to collect from the estate within that 4 month period, the claim will be deemed too late and will be barred.  Without the probate proceeding, the claim won't be barred until one year from the date of death.

So, even estates that don't have any probate assets may sometimes choose to open a probate. 

Next post: If Probate Can Be A Good Thing, Does Anyone Need A Living Trust?