When we die, our property typically goes through probate– a process where the courts read our Will (if we have one), select an administrator of our estate and identify how our possessions should be distributed. This is referred to as “death probate.” Living probate works similar way other than that it occurs while we are still living.
When we become seriously handicapped or incapacitated, it may become essential for a relative or good friend to take over our affairs. To do this nevertheless, the court should state us “incompetent” and select an administrator to oversee our estate on our behalf.
Living probate can be a prolonged and expensive process and requires the administrator or “guardian” to file regular reports with the court, detailing any monies that were spent and any other transactions that impacted our estate.
This process can also be rather degrading to the owner of the estate as the court requires proof of the individual’s incompetence.
Fortunately, there are methods to prevent living probate, but to do that, you’ll need the help of a competent estate planning lawyer.