Avoiding Jurisdictional Probate Process

Article by Yolan Ebert

Did you know that without proper estate planning, probate can become a long, expensive, and stressful process for your loved ones???

As you work on essential end-of-life documents like your will, advance directive, and living will, it’s equally important to consider how to avoid probate.??

?But before that, let’s first take a moment to understand what probate is and why you might want to avoid it altogether.?

What is meant by probate???

The process of resolving a deceased person's estate and allocating their belongings to their heirs under judicial supervision is known as probate.??

Having a last will and testament does not avoid probate.?

In order to probate a will, the court must receive the document and designate a personal representative to collect the decedent's assets and handle any unpaid taxes or debts.??

Why do people avoid probate??

• Probate can delay property distributions due to time-consuming asset gathering and debt repayment.?

• The process can last months or years, affecting intended heir assets.?

• Probate attorney involvement can increase expenses and delays.?

• The goal is to have assets pass directly to heirs without probate court involvement.?

How to avoid probate??

1. Joint Ownership with Rights of Survivorship? By holding property with another person (e.g., a spouse or partner), ownership automatically transfers to the surviving owner upon death. Options include Joint Tenancy, Tenancy by the Entirety (for married couples), and Community Property (in certain states).?

1. Beneficiary Designations? Life insurance, retirement accounts (like 401(k)s & IRAs), and annuities allow you to designate beneficiaries. These assets pass directly to the named individuals without probate, saving time and hassle.?

1. Pay-on-Death (POD) & Transfer-on-Death (TOD) Accounts? Bank and investment accounts can also be linked to a beneficiary. By choosing POD or TOD designations, you ensure these funds go directly to the beneficiary, bypassing the probate process.?

1. Revocable Living Trust? A living trust allows you to retain control of your assets during your lifetime and seamlessly transfers them to a successor trustee upon your death. This method ensures your assets are distributed per your wishes without probate delays.?

1. Lifetime Gifting? Giving assets away while you're alive removes them from your estate, meaning they won’t go through probate. Keep in mind, though, that large gifts may trigger gift taxes.?

By incorporating these strategies, you can simplify your estate plan, avoid lengthy probate, and ensure a smoother transition for your beneficiaries.???

Cited in Michelle Kaminsky, Esq. (2022); 5 Ways to Avoid Probate?

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