No one wants to think about the possibility of dying and leaving their loved ones with a mess to clean up. But, if something happens, it’s best to have a plan in place. There are several ways to avoid probate, but one of the most common is to create a will and/or trust. Here are other tips to help you avoid probate and make things easier for your survivors.
Give Away Property Before You Die
One way to avoid probate is to give away property while you’re still alive. You can do this by creating a gift deed or transferring property ownership into a living trust. If you give away property, you’ll need to be sure that you don’t need it yourself in the future. Without proper care, you may find yourself in an unaffordable situation. Besides, once you give away property, you usually can’t take it back.
Create a Living Trust
You can create a living belief to bypass probate Court. To do this, you would transfer ownership of your property into the trust while alive. By naming a trustee, you are designating someone to oversee the property on behalf of yourself and your chosen beneficiaries. Without probate, upon your death, the trustee can allocate your property to inheritors. When you create a living trust, you can choose to have it “revocable” or “irrevocable.” If you make it revocable, you can change your mind about who the trustee and beneficiaries are at any time. But if you make it irrevocable, you can’t change your mind after the trust is created.
Designate a Beneficiary for Your Property
To avoid probate, you can designate a beneficiary for your property. This is commonly done with retirement funds and life insurance guidelines. Naming a beneficiary for your account or policy helps to avoid probate. Instead, it will pass directly to the named beneficiary when you die. If you have a bank account, you can make it a “payable on death” (POD) account. Or if you own property, put your real estate in a “transfer on death” (TOD) designation. TODs are also available in some states for other types of property, like securities and vehicles.
Keep Your Property in Joint Tenancy
Another way to avoid probate is to keep your property in joint tenancy with someone else. Joint tenancy means that you own the property together with another person. If a joint resident dies, the other joint citizen automatically owns the property without going through probate. Nevertheless, owning property as joint tenants can be complicated. That’s because you’re giving up some control over the property. For example, if you have a joint bank account with your adult child, they can withdraw money from the account without your knowledge or consent. So, you’ll want to think carefully before putting someone else on your property as a joint tenant.
Make a Will
If you don’t do any of the other things on this list, at least make a will. If you don’t have a choice, the state government rather than you will decide who receives your property once you die. A will permits you to be in the power of what happens to your belongings after your death. Additionally, the people you love may not be the same individuals you would want to receive your belongings. If you have young children, a will also let you name a guardian for them in case something happens to you. That way, you can be sure that your children will be raised by the person you choose—not by whoever the court appoints. So, even if you do some of the other things on this list, it’s still a good idea to have a will.
You can also avoid probate by setting up payable-on-death accounts. A payable-on-death account permits you to name a legatee who will receive the money in the account upon your death. You can avoid probate for your bank account by making it a payable-on-death account. To open a new account, you’ll require to supply a form with the bank. Or you can put your securities in a transfer-on-death designation.
These are only a rare of the techniques you can employ to sidestep probate. If you’re curious in understanding more about this topic, consult with probate solicitors London. They can give you more information about how to avoid probate and what might be best for your situation.
You can avoid probation by following some simple steps. You can give away property, create a living trust, designate a beneficiary for your property, or keep your property in joint tenancy. When you plan, you can complete the probate procedure much more comfortably for your treasured ones.