By Ryan Yuhnke
Most people don’t hear the word “probate” until a loved one passes away; and at that point, they have much bigger things to worry about than the ins and outs of settling an estate. That’s just one of the reasons why working with an advisor who’s an expert in probate can be so beneficial. If you’ve found yourself suddenly stepping into a fiduciary role, here are four reasons why a probate expert may be the right choice for you.
What Is Probate?
Probate is the legal process of settling a person’s estate after death. It involves filing documents with the court, and it can be both expensive and time-consuming. When an estate goes through probate, it can cause major delays in the transfer of assets to heirs.
Why Should You Work With a Probate Expert?
At Court Investment Services, we believe that a lack of knowledge about probate shouldn’t prevent you from fulfilling your fiduciary duty as executor of an estate. Instead, adding working with a investment advisor who is an expert in probate code as one of your trusted sources can help you navigate the process and make the most of your responsibilities as executor by:
1. Consolidating Assets
Stepping into a fiduciary role can be confusing, and you might not know much about the estate or the financial assets that belong to the ward or decedent. Especially when you’re appointed as a conservator or administrator without prior information.
This can make it difficult to consolidate assets from banks, brokers, and transfer agents. Understanding the language (and subsequent paperwork) of probate is the first step in managing the estate. We can help you sort through what you’re working with, file paperwork in a timely fashion, and ensure the estate is properly accounted for and consolidated.
2. Maximizing Assets
Beyond consolidation, working with an advisor who is an expert in probate code can also help maximize the assets of the estate. Probate is already costly so proper asset management is crucial in order to make the most of the assets that will pass to the beneficiaries.
Maybe the assets you’re managing are overly concentrated in one particular sector or asset category, or maybe you’re unsure of which positions are worth keeping and which are worth selling. No matter your situation, we can create a comprehensive investment strategy to improve diversification and mitigate risk.
At CIS, we manage our investment portfolios in compliance with the Uniform Prudent Investor Act, meaning we know exactly what an executor, conservator, or guardian can and cannot invest in. We will make sure the investments are not only appropriate but also properly diversified and in line with the estate’s risk/return characteristics.
3. Minimizing Taxes
As the saying goes, “It’s not how much you make but how much you get to keep that matters.” This is especially true when it comes to probate and estate administration. Between taxes on investments, taxes on transferred retirement accounts, and the potential for gift, estate, and generation-skipping transfer taxes, estate administration can be quite costly. Thorough tax-minimization strategies are essential.
We can offer insights into the best ways to reduce and offset taxes by utilizing strategies like tax-loss harvesting, timing of asset withdrawals, and proper transfer of retirement accounts.
4. Providing Expert Guidance for Better Decisions
As a fiduciary, you carry a huge responsibility to act in the best interest of the estate. It is a legally binding relationship that can result in major consequences if the assets aren’t administered properly. Working with an investment advisor with probate experience can help alleviate the stress that comes from such a big commitment, helping you feel more confident and informed in your decisions. We can help you:
- Retitle investments at various transfer agents, brokerage firms, and investment companies
- Determine which decisions related to securities need to be made now and which ones can wait
- Maintain compliance and fulfill your fiduciary obligations by overseeing the assets
Get Started Today
Navigating probate can be challenging even for the most seasoned professionals. Don’t fall short of your fiduciary responsibilities by navigating it alone. Working with a financial advisor who is an expert in probate code can save you time, stress, and hassle. To learn more about your options, schedule an appointment by contacting us at (800) 880-2760 or Contact@CourtInvestmentServices.com.
About Ryan
Ryan Yuhnke is founder and Principal at Court Investment Services, an independent, fee-based investment firm that serves attorneys and fiduciaries as they manage estate-held assets. With two decades of experience, Ryan’s proactive, relationship-based process saves his clients time and money while putting them first in everything. He provides services and support to help attorneys and professional partners oversee and manage special-needs trusts, estates, conservatorships, guardianships, and other court accounts, including IRAs, 401(k)s, and all manner of retirement accounts that also fall under his clients’ management. Ryan is known for his commitment to excellence and transparency and his deep knowledge of probate laws, court compliance, and strategies to keep assets safe while abiding by all court and probate code directives. Ryan’s goal is to make his clients’ lives easier, providing investment support and education along the way.
Ryan has a bachelor’s degree in economics from the University of California, Irvine, and built his career working in banks, national investment firms, and registered investment advisory firms (RIAs.) Prior to starting CIS, he earned the title of First Vice President, and Portfolio Management Director while employed at Morgan Stanley in Newport Beach, CA. When he’s not working, Ryan can be found traveling and enjoying time with family and friends. This might include golf in the warmer months and snowboarding in the cooler months. To learn more about Ryan, connect with him on LinkedIn.
