As you begin your estate plan ventures, you may come into contact with information about probate. It can be confusing to understand the probate process as well as how it fits in with your overall estate plan. Weve taken the time to outline some helpful information, to help you better understand this legal process. Take a look at the information below, to learn more.
Why do many people plan to avoid probate?
Many people plan to avoid probate for a number of reasons. One of the main reasons is because probate is a public process. Anyone can have access to probate records and can obtain your personal and financial information. Most people want to keep their affairs private.
Additionally, probate can be expensive and time-consuming. Probate often takes several months (or years), which can be stressful and overwhelming. This also means that beneficiaries are unable to receive their inheritances quickly.
Since there are many downsides to the probate process, many people plan to use estate planning tools in order to make sure that their assets stay out of the probate process.
How can I avoid probate?
If youre looking to avoid the probate process, you have several options. The assets that pass through probate are assets that are individual owned by you. You may choose to own property jointly with another individual. In this case, the property will automatically transfer to the co-owner after your death.
Many people also choose to gift during their lifetime. This can be a great option if youre looking to pass along assets that you no longer need. Since you transfer ownership of these assets to another individual during your lifetime, they will not be probated.
Another option is to create a revocable living trust. With this estate planning tool, you transfer the title of your assets to the name of your trust. You also appoint a trustee to manage and control the assets after your death. These assets are protected from probate. This means your loved ones will receive their inheritances more quickly, and your affairs will be kept private.
Make sure that you discuss probate avoidance with an experienced probate estate planning attorney. This will allow you to make informed decisions that will benefit your plan.
- Attorneys Want to Help - December 14, 2016
- Trusts and the Estate Tax - December 14, 2016
- What Is a Third Party Special Needs Trust? - December 14, 2016