Your assets do not have to go through probate – the often lengthy, costly and stressful court-supervised process of settling an estate. Avoiding it can ease the handling of your estate and reduce the risk of issues like executor misconduct or disputes among loved ones.
Below are some estate planning tools and strategies to bypass probate and help ensure a smooth transition of assets to your beneficiaries.
Use a revocable living trust
You can avoid probate by putting your assets in a revocable living trust. When you are gone, the trust assets will be passed to your beneficiaries directly. The beauty of an irrevocable trust is that you retain control and ownership of the trust assets, which you have to give up with irrevocable trusts.
Designate beneficiaries on accounts
If you have life insurance policies, retirement funds and some bank accounts, name beneficiaries who will receive the proceeds when you die. This allows funds to pass to your chosen beneficiaries without going through probate.
Consider joint ownership
Jointly owned property can help avoid probate, as ownership typically passes automatically to the surviving owner. For instance, if you are married, consider a joint tenancy with the right of survivorship to help ensure a smooth transfer of your assets upon your death.
Gifting to loved ones
Giving assets as gifts during your lifetime removes them from your estate, and they won’t have to go through probate. Be wary of any tax consequences, especially if you have a considerable estate.
Avoiding probate doesn’t have to be complicated, and it can bring peace of mind knowing your loved ones won’t face unnecessary delays or costs. If you’re ready to explore the best solutions for your unique needs, contact Quinn Law Firm at 814-833-2222 today to speak with an experienced estate planning professional.
