Layman’s Guide to Probate Avoidance

Probate Avoidance

 Transferring assets to the next generation can feel overwhelming. Many people believe that estate administration is the best way to ensure assets are correctly passed down at death. But sometimes, this can be achieved without having to initiate probate procedures. Many times, trusts are successfully used as an estate planning mechanism that will help avoid probate altogether. However, trusts are not the only option for those who want to ensure while still living that their assets will be properly distributed.

 Plan Ahead

Planning ahead to avoid probate may be as simple as filling out the right paperwork and properly naming beneficiaries. Qualified investments, like 401(k) plans, retirement savings plans, and life insurance policies are just a few ways that beneficiaries may be named while a person is living. At death, these assets may transfer as planned once proper filings and necessary transactional work is completed.

 If the goal is to avoid probate altogether, stocks, brokerage accounts, and regular savings or checking accounts should also be considered in advance. These accounts are often overlooked but can be easily protected with payable on death arrangements.

 Real Property

 When real estate investments or ownership are concerned, many owners should consider titling the property as “joint tenants with rights of survivorship.” As a form of co-ownership, this simple transfer can help insulate real estate from probate.

 Other owners may also consider the transfer on death deed (“TODD”). This deed, though executed during life, provides for the transfer of real property assets at the time of death to the designated beneficiary, provided certain statutory requirements are met after death.

 Compliance

 When trying to keep various assets and real property out of probate, it is critical that the correct documents, legal formalities, and other requirements are strictly adhered to. In addition, avoiding probate requires an understanding of the various tax implications.

 If you need help with estate planning or have more questions on avoiding probate, please contact us today at (405) 310-0183 for a free consultation.