People often seek to avoid probate because they think it's costly and time-consuming. It can also make the content of a will public, which could be embarrassing if the person who died intentionally omitted an heir.
The legal process for distributing a deceased person's assets and settling their debts varies by state. Compared to other states, in Maine, it is generally fairly inexpensive and efficient.
Do All Estates Have to Go Through Probate in Maine?
Depending on the value and type of property the deceased person owned, probate may or may not be necessary.
Probate can resolve any disputes among heirs and address confusion over a will's intent. It also sets a clear deadline for creditors to file claims, reducing uncertainties about the debts of the estate.
If all the estate assets are non-probate assets, the probate court might not need to be involved in the distribution. If you want your intended estate plan beneficiaries to be able to avoid probate, you should talk to an experienced estate planning attorney, because everyone's situation is different.
What Is the Threshold for Probate in Maine?
Probate laws are state-specific; many set valuation thresholds.
In Maine, if an estate is worth no more than $40,000 (minus any debts or property claims), it's considered a “small estate.” (This threshold is annually adjusted for inflation.) Small estates often include assets like vehicles or other personal property.
One can often resolve small estates quickly by using Maine's small estate affidavit. This process is usually simple but whether it completely settles an estate is a legal question. For advice, talk to an attorney with experience with the probate process.
Which Assets Are Exempt from Probate in Maine?
Types of assets exempt from probate include:
- Jointly owned property with rights of survivorship (for example, vehicles or real estate)
- Assets with designated beneficiaries (e.g., life insurance, retirement accounts, or annuities).
- Assets held in a trust.
Exemption from probate doesn't mean freedom from taxes or other claims.
These assets bypass probate because they already have a clear legal method for transferring ownership through beneficiary designations or joint ownership agreements.
If you will use beneficiary designations, ensure they're up-to-date to prevent assets from unintentionally becoming probate property. Life changes like marriage, divorce, or childbirth can affect your estate plan. For example, if an ex-spouse remains listed as a beneficiary on a life insurance policy, it could lead to an unexpected outcome.
Digital assets like cryptocurrency are another consideration. Without clear instructions in your estate plan, your loved ones could face delays or lose access to them.
Regularly reviewing and updating your estate plan can help ensure that your intentions will be carried out as you wish. You don't always need to wait for a major life event to trigger this review. A quick consultation with an experienced estate planning attorney may help you decide if you must make changes to avoid challenges later.
Proper estate planning minimizes stress and potential disputes and safeguards your future.
Why Probate is an Issue
Estate administration often involves probate, and in some cases, it's unavoidable. Understanding your options and how to minimize their impact is crucial for protecting your loved ones and assets.
Though some parts of estate planning seem straightforward, the nuances of asset distribution and tax implications may require professional insight. With the right planning, you can ensure a smooth wealth transfer and preserve your family's legacy.
To ensure a plan meets your needs and goals, speak with a skilled estate planning attorney. Contact us online or call (207) 377-6966 to secure your future today.
