How To Avoid Probate: 5 Legal ways
Without proper estate planning, probate can end up being one long, expensive stress for your heirs. So as you prepare end-of-life documents such as your will, advance directive, and living will, something else you should keep in mind is doing your best to avoid probate.
Before we get into how to avoid probate, let’s talk about what probate is and why you would want to bypass dealing with probate law at all.
How Can My Estate Avoid Probate?
By avoiding probate, you can ensure that your descendants keep their financial affairs private, and minimize the cost, time, and headaches associated with the transfer of assets to your heirs. Some strategies to consider if you wish to avoid probate court include:
- Transfer Property to Revocable Trusts
- Reduce Your Estate
- Create A Will
- Name Beneficiaries
- Take Advantage of Joint Ownership
Probate is a court-supervised proceeding that authenticates your Will (if you have one) and approves your named Executor so he or she can distribute your property and belongings. During the probate process, all your assets must be located and assessed for total value. Once that is done, taxes and debts are paid and the remaining value of the estate is distributed.
In cases where there is no Will (meaning your estate is intestate), this process obviously becomes more complicated. Because there is no documentation stating your final wishes, it is up to the courts to handle proceedings and make all decisions for you.
Why Is Avoiding Probate Court A Good Thing?
In addition to helping you cut expenses, avoiding probate court can also help you and your deceased kin benefit in several ways.
Privacy
Most people won’t want their finances, or those of their heirs, to be made public, even in death, especially in relation to large outstanding debts or inheritances. Avoiding probate can help you keep sensitive personal financial matters private.
Cost
Several costs such as filing fees, newspaper publishing fees, and attorney’s fees, as well as various other outstanding items, are also associated with probate court, and can quickly add up. Again – avoiding probate allows you to keep more money in your pocket. Note that even more expenses can be accrued if a will is not in place.
Time To Settlement
Courts move slowly and carefully to ensure that estates are properly distributed, and debts handled. However, this can be a distinct disadvantage for your heirs if they’re dependent on the financial windfall that the estate stands to provide.