CASE STUDY: AVOIDING THE HIGH COST OF PROBATE WITH ESTATE AND LEGACY PLANNING
Linda, a REIBLAW client, faced significant challenges following the sudden passing of her husband, who was the sole owner of a local service company structured as a single-member LLC. In addition to coping with her loss and supporting their minor children, Linda encountered extensive legal hurdles due to her husband’s lack of estate planning. Without a will, Linda’s only option to gain access to the business and secure her family’s financial stability was to go through a lengthy probate process.
The Challenge
Without an estate plan, Linda’s husband’s business assets were tied up in probate, and Linda faced an array of obstacles, including:
Court-Ordered Dependent Administration: Because her husband had no will, Linda had to file an Application for Heirship and an Application for Administration. The court ordered a Dependent Administration, a process that requires continual court oversight for every business decision Linda made.
Guardian Ad Litem for Heirship: Although no guardianship was required for her minor children, the court appointed a Guardian Ad Litem to represent their interests in the heirship proceedings. This added a layer of complexity and cost.
High Costs and Prolonged Timelines: With court-mandated bonds, multiple hearings, and the requirement to go through each decision with the court, the probate process took years and cost over $10,000. These challenges placed an unnecessary burden on Linda during an already difficult time.
Solution: The Legacy Plus Package
With a Legacy Plus Package in place, Linda’s husband could have spared her the delays, stress, and financial burden associated with probate. Here’s how the package would have changed Linda’s experience:
Independent Administration:
The Legacy Plus Package includes essential documents, like a will and trust, that streamline the transition of business assets and grant independent control to the spouse. This would have allowed Linda to avoid court interference, saving time and reducing costs significantly.
Heirship Clarity and Efficient Transfer:
A clear estate plan would have eliminated the need for a Guardian Ad Litem for heirship, as beneficiaries would already be clearly named. This approach reduces the complexity and cost associated with proving heirs in probate.
Cost Savings:
By securing the Legacy Plus Package, Linda’s family would have avoided the $10,000 cost of probate, along with the need for ongoing legal representation and court fees.
Key Takeaways for Small Business Owners
Linda’s story highlights the importance of estate planning, especially for business owners with minor children or a sole proprietorship. Here’s what the Legacy Plus Package provides:
Control Over Your Legacy:
You decide who takes over your business, ensuring continuity without costly legal delays.
Cost-Effective Planning:
Avoiding probate can save your family thousands of dollars, allowing them to use those funds to sustain and grow the business.
Efficient Transition:
Independent administration allows your spouse to seamlessly step into the business role, protecting your family’s financial well-being and allowing them to focus on healing.
Why Choose REIBLAW’s Legacy Plus Package?
At REIBLAW, we understand the unique needs of small business owners and their families. Our Legacy Plus Package provides a comprehensive estate plan tailored to your situation, ensuring that your family can avoid probate’s high costs and delays.
Final Thoughts
Estate planning is a powerful tool to protect both your family and your business. Secure your family’s future and your business legacy with REIBLAW’s Legacy Plus Package. Contact us today to schedule your Business Legacy Road Mapping Session and learn how easy it is to protect what matters most.