Almost all of our clients want to avoid probate so they save time, money, and hassle; and, keep their private affairs private. Here are 6 assets that absolutely avoid probate.
1. Revocable Living Trust Assets. If your asset is titled in the name of your trust, it avoids probate, absolutely.
2. Jointly Owned Assets. If you own an asset as joint tenants, with right of survivorship, with one or more individuals (and you die first), the asset will avoid probate.
3. Beneficiary Designation Assets. If you own a beneficiary designation asset and name an individual or trust (not your estate) as a beneficiary, the asset will avoid probate.
4. In Trust for Assets. Assets that have the in trust for designation, absolutely avoid probate. You still own your asset, but it has a beneficiary named.
5. Pay on Death Assets. Assets with a pay on death designation, avoid probate. You own your asset during your lifetime, but a beneficiary is named.
6. Transfer of Death Assets. Assets with a transfer on death designation, avoid probate just like the pay on death version. Name an individual or trust beneficiary.
These are 6 types of assets that avoid probate, absolutely. However, but for the revocable living trust, each of the other 5 assets have significant pitfalls. The most significant of which are loss of control and the unintentional disinheritance of children. Consult with a qualified estate planning attorney to ensure you may good choices.
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