People tend to want to avoid court at all costs.
Probate court is usually viewed more favorably than other court proceedings because probate court does not invoke thoughts of winners and losers. But probate court can still be very stressful, not least because it follows the death of a loved one.
Probate is the court-monitored process of managing and distributing the assets of an estate. It is often time consuming and expensive. But there are ways to avoid probate of either part or all of the assets you leave behind, which can save your loved ones time, money and a lot of headaches.
Living Trusts
One of the easiest ways to avoid probate is to have a living trust. To create a living trust, you draft a trust document, naming yourself as the original trustee and a successor trustee to take over management of the trust when you die.
Any assets that would otherwise have to be probated can be transferred to your living trust, including,
- Real estate
- Personal property
- Bank accounts
Once ownership of the assets is transferred to the trust, you manage the propertypursuant to the terms of the trust, which usually permit you to use trust assets for whatever purposes you choose.
Upon your death, the successor trustee takes over and will be tasked with distributing the remaining trust assets to your beneficiaries, according to the instructions you included in the trust. These assets are not required to be probated, but instead can be immediately distributed.
Joint Ownership
Another way to avoid probating assets is to title the asset jointly with rights or survivorship. Assets titled this way transfer automatically to the surviving owner(s) when one of the joint owners dies. These assets are not subject to the claims of your creditors and do not require probate.
Payable on Death
Assets in bank and investment accounts can also be transferred via a “payable on death” designation. A payable on death designation identifies the person you want to own the account assets after you die. The payable on death beneficiary will take title to the account immediately and without the need for probate.
Using these estate planning options, it is possible for most people to avoid probate entirely.
If you find yourself embroiled in a dispute over a will or trust, reach out to the experienced legal team at Gaslowitz Frankel. We’ve been successful litigating trust disputes for more than three decades. Contact us for a consultation.
