While the loss of a loved one is an inevitable part of life, it is not often at the forefront of most people’s minds. In many cases, individuals don’t consider or plan for the loss of a loved one, which can result in many challenges when a loved one passes away.
Probate is one of the most common complexities that can arise from a lack of planning for the loss of a loved one. While the probate process can be challenging and cumbersome, it can be avoided with proper estate planning.
If you want to avoid having loved ones or your estate enter into probate, it is important to understand what probate is, how it works, and what recommendations you may be able to follow.
Understanding the Basics of Probate
If you are unfamiliar with what probate is, you are not alone. In short, probate is a legal process that distributes the assets and property of an individual who passes away.
Generally, an estate executor or an attorney will generally initiate the process, and a probate court will validate the will of the deceased individual (if a will exists) and authorize the executor to distribute the assets accordingly and to the appropriate beneficiaries. There are, however, many considerations that need to be taken when initiating probate, as well as specific scenarios that may vary the type of probate you may be able to file. A Florida probate lawyer would ask you the necessary questions to get a better understanding of your situation and advice you on the various processes.
3 Estate Planning Recommendations
While the probate process may seem cut and dry, without the proper planning it can become quite complex. The following are three estate planning recommendations that may help you avoid probate.
#1: Establish a Living Trust
Assets or property held in a trust are controlled by a trustee and are not a part of your estate upon death. The trustee, who controls the trust, will be obligated to distribute it according to the terms of the trust agreement.
For this reason, creating a revocable living trust may be a good option for you to avoid an estate being subject to probate. This type of trust is also beneficial because you can create provisions that allow you to modify or cancel the terms at any given time. The idea is to place valuable assets in the trust and assign them a beneficiary upon your demise.
#2: Consider Joint Ownership
This may seem a little overwhelming at first if you aren’t sure who you can trust, but by considering joint ownership with right of survivorship for valuable assets and property, you can avoid going into probate. Whether it is a spouse, significant other, relative, or trusted friend, having someone else as a joint owner helps ensure that the property will automatically be transferred to the other person’s ownership in the event that one of the owners passes away. The key part of joint ownership is properly setting up the property title to include both owners and with right of survivorship. It is, however, extremely important to consider the potential liability exposure on your asset and yourself when adding a joint owner.
#3: Creating Transfer-Upon-Death Accounts
You have likely heard of trusts and joint ownership, but creating a transfer-upon-death account is a less commonly known option that can help you avoid probate. These types of accounts work by appointing a beneficiary who will be the designated recipient of the funds in the account upon the account owner’s death. These accounts are often used to protect financial accounts from entering into probate. Generally, bank accounts, investment accounts, retirement accounts, and life insurances, allow you to designate beneficiaries who would receive this asset upon the owner’s death.
Helping You Avoid the Complexities of Probate
While the probate process may seem fairly straightforward, it can be highly complex, slow, costly, and public. By properly planning how yours or a loved one’s estate and assets should be distributed upon death, you can avoid the hassle of probate altogether. Notwithstanding the above recommendations, it is imperative that you consult with an attorney to evaluate the potential benefits and risks that each option may have on you and your assets.
At Apfelbaum Law, we understand that preserving and memorializing yours or your loved one’s wishes is important. We strive to ensure that your wishes are ultimately carried out by counseling you and drafting wills, trusts, powers of attorney, health directives, and more. Contact us today to properly plan, assist, and guide you through the administration of an estate after a person passes away.
