In order to pass a deceased person’s assets to beneficiaries in Florida, a process known as probate is typically required. The process of probate can take months to finish and entails both financial and emotional burdens.
How to Avoid Probate
The average person may mistakenly believe that having a will keeps their loved ones from having to go through the probate process. Unfortunately, that is not the case. However, the process may be avoided by taking a few important steps.
Each strategy highlighted below can be used in varying combinations to maximize coverage and minimize the time and money your loved ones will spend in probate. Because of the complexities involved, it’s best to enlist the help of a lawyer before making any decisions.
#1 Write a Living Trust
One way to avoid probate is to simply create a living trust. A trust enables you to put your assets and property “in trust” while you’re still living so they won’t need to be distributed after your death. When juxtaposed with a will, the primary difference is that a will distributes your assets after your death.
Your trust is managed by a trustee for the benefit of your beneficiaries. With this step, you can totally avoid probate because the property and assets have already been transferred to the trust.
#2 Give Gifts Directly to Beneficiaries
Giving your assets as gifts to your beneficiaries while you are still alive is one of the simpler ways to avoid probate. Doing so has many advantages, particularly with regard to taxes. In addition to potentially lowering the federal estate tax burden, if the asset being transferred has a value of less than $16,000, there is also no requirement to submit a gift tax return (the value of the gift tax exclusion changes).
#3 Consider a Joint Tenancy
Another option for those who are preparing their estates with probate in mind is joint tenancy with a right of survivorship. A joint tenancy is when two or more people jointly own a piece of property. After either joint owner dies, the legal title passes to the surviving owner automatically and won’t be subject to probate.
#4 Establish Beneficiary Accounts
Financial accounts allow the owner to designate one or more beneficiaries who will take over the account once the original owner passes away. In other words, the initial owner specifies who will be the account’s beneficiary following their passing. The decedent’s probate estate does not include any accounts that transfer in this manner after death.
Do You Need a Probate Lawyer?
A Florida probate lawyer can help you make sure everything is prepared the way you want for your estate.
The attorneys at Apfelbaum Law can help you through the probate process and assist in probate decisions or disputes. Contact us for a consultation if you need assistance or have questions about any potential legal matter.
