When we pass away, our property generally goes through probate– a procedure where the courts read our Will (if we have one), appoint an executor of our estate and determine how our assets ought to be dispersed. This is understood as “death probate.” Living probate works much the exact same method except that it takes place while we are still living.
When we become seriously handicapped or incapacitated, it might end up being needed for a member of the family or friend to take control of our affairs. To do this however, the court should state us “inept” and appoint an administrator to oversee our estate on our behalf.
Living probate can be a prolonged and costly process and requires the administrator or “guardian” to submit regular reports with the court, laying out any loan that were spent and any other deals that impacted our estate.
This procedure can likewise be somewhat degrading to the owner of the estate as the court requires evidence of the person’s incompetence.
Fortunately, there are ways to prevent living probate, but to do that, you’ll need the aid of a competent estate planning lawyer.