Many families consider probate a time-consuming, emotional, and costly legal process. To make matters worse in their eyes, they genuinely believe it is unavoidable. In other words, facing it head-on after the death of a loved one is the only way.
While it is true that it is often necessary for a probate court to lay out ground rules for how claims will be resolved and how assets are distributed to family members—especially when someone passes without a Will—the good news is that probate is often avoidable with the right planning. That said, today’s blog post will teach us that simply having a Will is not enough.
Proactive planning is key to avoiding probate, and many of the strategies below are relatively easy to implement right now.
Consider These Four Steps to Avoiding Probate
A common misconception among people with a Will is that it helps avoid probate, and it is easy to see why there is so much confusion. After all, a valid Will is supposed to give you control over how your assets are distributed and final wishes are carried out. With so much power in your hands, even in death, there should not be a need for the probate court to get involved. Right?
Well, not exactly. Having a Will does not help avoid probate. However, these additional steps can eliminate unnecessary legal hurdles.
Establish a Living Trust
This document is similar to a Will, albeit with a few more bells and whistles. However, whereas a Will must be validated through the probate process, a Living Trust is a private document not subject to probate. Therefore, any property listed under the umbrella of a Living Trust is protected and can be transferred to the various beneficiaries.
Label property as joint ownership with right of survivorship
If you own property jointly with someone else, take the extra step to include a “right of survivorship” designation. In doing so, assets owned with the right of survivorship pass directly to the surviving owner, thus avoiding probate. Click here to read more about the two forms of joint ownership that have the right of survivorship.
Label bank accounts as Payable-on-Death or Transfer-on-Death
Adding a POD or TOD designation is common when setting up bank accounts, investment accounts, and some real estate titles. This ensures that the money held in those accounts is automatically transferred to the designated beneficiary upon your death, thus being able to avoid probate.
Update beneficiary designations
Look closely at the beneficiaries listed on your retirement accounts and life insurance policies. Changes in relationships (e.g., marriage, divorce, new children) and even the untimely passing of an intended beneficiary may require updates to ensure your current wishes are reflected and that your assets end up in the right hands after you are gone.
Working with a knowledgeable and compassionate estate planning attorney is critical to ensuring that all your family’s needs are covered today, tomorrow, and for years to come. We constantly caution existing and prospective clients about the dangers of neglecting their estate planning strategies, including getting stuck in a long, drawn-out probate process. Simply put, everyone needs to have a plan in place for the day they die or become medically incapacitated, and getting it done sooner rather than later is always best.
Call Nelson Law Group Today!!
When it comes to protecting your family’s future for years down the road, it is imperative to have an estate planning attorney in your corner at all times. This is true even when you cannot avoid probate. Give our knowledgeable staff here at Nelson Law Group, PC, a call if you have any questions. Our staff is always available.
For more information about Brett A. Nelson, click here.
