What is Probate & How Can You Avoid it

We understand how daunting it is to plan for the inevitable. However, amidst these uneasy thoughts lies a realization that by addressing these matters proactively, we can ease the stress on our loved ones in the future.

One significant aspect of this planning is understanding what is probate and how you can minimize its impact on your family. This article will explain all this and offer practical advice that’ll help you avoid or mitigate the challenges associated with probate.

What is Probate?

Probate is a legal procedure that is initiated after someone passes away. This involves the court overseeing the distribution of the deceased person’s assets and ensuring that their debts and taxes are properly settled.

The purpose of probate is to validate a person’s will (if it exists) and ensure that the terms are executed rightfully. In case there’s no will, probate ensures that the deceased person’s assets are managed and distributed according to state law.

How to Avoid a Probate?

Probate is the general administration of a person’s assets; therefore, anything the person leaves behind goes through probate. However, there are a few ways in which you can keep your estate out of probate court:

1. Create a Living Trust

A living trust is not considered part of the probate estate, and thus, it doesn’t go through the probate process. Instead, the assets held in the trust are managed by the trustee according to the instructions outlined in the trust document.

As long as you’re alive, you can designate yourself as the trustee and maintain full control over the assets. Then, you can name a successor trustee(s) who will manage the trust as per your instructions upon your death.

2. Establish Joint Ownership

It’s also possible to also avoid probate by establishing a co-ownership of your assets with a loved one. In such arrangements, you’ll share the ownership of assets with another person, and upon your death, the complete ownership of these assets will automatically transfer to the surviving owner(s).

3. Assign Your Beneficiary

You can set up certain accounts, such as life insurance policies or retirement accounts, as POD (pay-on-death) or TOD (transfer-on-death). This will allow you to designate beneficiaries who will inherit the assets held in these accounts without the need to go through probate.

4. Give Them as Gifts

You can also consider giving away your assets to your loved ones while you’re alive. This allows you to transfer ownership of the assets directly to your chosen recipients, bypassing the probate process entirely.

How We Can Help

Understanding what is probate is just the beginning. You’ll need to carefully craft your estate plan if you want to avoid probate and ensure your loved ones are spared from unnecessary burdens during an already difficult time.

Our team specializes in this area, and we can help you manage your assets and navigate the complexities of estate planning. Schedule a consultation with our law firm to get started!