There is an estate administration process that takes place after you pass away. When a will is used as a vehicle of asset transfer, property becomes probate property at first. This property cannot be transferred until the estate is probated by the court, and this process can be time-consuming. There are also considerable expenses that can present themselves during probate.
When you hear about these potential difficulties, you may wonder if it is possible to avoid probate. The answer is yes, you can proactively take steps that would facilitate probate avoidance. In addition to this, there are some asset transfers that would simply not be subject to the probate process.
Revocable Living Trusts
If you want to avoid probate, you may want to convey property into a revocable living trust. You do not surrender control of assets in this type of trust. As the person creating the trust, you can act as the trust administrator while you are living, and you can also receive distributions from the trust as you see fit.
You create a trust declaration when you establish the trust. In this document, you name a trustee to administer the trust after your passing, and you name beneficiaries to receive distributions after you are gone.
The trustee would follow your instructions and distribute assets to the beneficiaries after your passing outside of probate.
There are some simple types of asset transfers that would not be subject to the probate process. For example, life insurance proceeds would pass to the beneficiaries free of the probate process.
You would also avoid probate if you have resources in a payable on death account. With this type of account, which can be opened at a bank or a brokerage, the beneficiary that you name would assume ownership of the remainder in the account after you die. Probate would not be a factor.
A joint tenant is a co-owner of property. If you add a joint tenant to the title of property that you own, this individual would assume ownership of the entirety of the property after you die, and probate would not enter the picture.
Free Probate Report
If you think that you may want to avoid probate when you are planning your estate, you should understand all of the facts. We have a valuable resource that you can access through this website if you would like to obtain some in-depth information about the process.
Our firm has prepared a report on probate, and it is being offered on a complimentary basis right now. To get your copy of the special report, visit this page and follow the simple instructions: Special Report on the Probate Process.
Attend a Free Living Trust Seminar
We regularly offer free living trust seminars. To view our upcoming seminars and to reserve your seat, follow this link: Free Workshops and Seminars.