Three Easy Ways To Protect Assets From Probate
If you are trying to plan what will happen with your assets and estate after you die, you are no doubt looking at trusts, wills, and other procedures that will help your beneficiaries avoid having to go to a probate court. In addition to those, however, there are some simple steps you can take with specific assets that save them from the whole process. Even if you choose to put as much as you can into a living trust, take these three steps to ensure everything is covered and that your heirs have the easiest time possible taking care of your estate.
Payable on Death
For bank accounts like your checking and savings, turning the accounts into "payable on death" accounts is easy. In many cases, you just have to add a beneficiary name to the account, though the actual procedure will vary by bank. If you have a normal bank account, you may have to put all of the money into a living trust to protect it from probate, but if you make the account payable on death, the beneficiary just has to bring in the right paperwork -- usually the death certificate and picture ID -- to get the money without having to worry about whether the money is in a trust or not.
Transfer on Death
If you have a car, you can name a beneficiary for that, too. Your state's department of motor vehicles should have a form that enables you to name someone to whom the car goes to immediately upon your death. If you don't name a person, the car can still go to your heirs, but there can be waiting periods before you can transfer the title. Using the transfer-on-death form eliminates that wait time and makes the process easier overall.
Naming Beneficiaries
If you have retirement accounts, name a beneficiary for each that will have a death benefit (i.e., the account will pay out upon your death rather than go into the retirement company's funds). That simple move shields the accounts from probate.
Another advantage to all of these moves is that they eliminate any disputes regarding who gets what. Not all families are on the best of terms, and wills and trusts can be a source of conflict. But if you name specific beneficiaries for each account or transferable asset like your car, then those items and monies go straight to specific people without question.
If you have more questions about avoiding probate, talk to an estate planner and probate law attorney to find out the latest tactics and laws. While probate can be simple in some cases, it's a lot better to avoid it completely.
Share