Trusts and More: How To Avoid Probate

Trusts and More: How To Avoid Probate – Probate is the term for the legal process in which a will is reviewed to determine whether it’s valid and authentic. Probate also refers to the general administering of a deceased person’s will or the estate of a deceased person without a will.

Probate can be relatively easy to avoid, yet many people fail to take steps to do that when planning their estates – William Hayes

After an asset holder dies, the court appoints either an executor named in the will or an administrator if there’s no will to administer the process of probate. This involves collecting the assets of a deceased person to pay any liabilities remaining on the person’s estate and to distribute the assets to beneficiaries.

A deceased person who has provided a will is known as a testator. When the testator dies, the executor is responsible for initiating the probate process — filing the will with the probate court and paying off any taxes and debts owed from the estate. After an inventory has been taken, the value of assets has been calculated and debts have been paid off, the executor seeks authorization from the court to distribute whatever is left to the beneficiaries.

Don’t let the probate process of settling your estate cost your loved ones more money or get in the way of making your estate planning easier.

• Your will must be legitimized by the local probate court.
• The judge needs to know this document is the last will of the deceased, review the inventory of the estate and confirm who will administer the estate proceeds. This is called executing a will.
• The executor or a lawyer representing the executor files the appropriate forms and handles court matters.

A will is not legal until it’s probated, and it can take anywhere from 6 months to 3 years. This allows an heir to challenge a current will, the probate court to confirm there are no errors in the documentation, and creditors to make claims against the estate.

All assets must be accounted for — not just the house, car and bank accounts but also savings bonds, stock certificates and any personal property. Assets jointly owned or having at least one designated beneficiary will avoid the probate process.

Probate can be relatively easy to avoid, yet many people fail to take steps to do that when planning their estates:

Create a living trust, also known as a revocable trust. This is a legal entity to pass all your assets to when you die. Even if you acquire property or additional assets after creating a trust, they can be titled to be part of the trust. Using this type of trust combined with one or more techniques for any assets not transferred into the trust means no probate assets.

Add a joint owner. You can do this to a bank or investment account or to a real estate deed, which also will avoid probate if it’s clear that the account is owned as joint tenants with rights of survivorship and not as tenants in common.

Use of beneficiary designations on life insurance, bank and nonretirement investment accounts are referred to as payable on death or POD accounts. Several states allow you to designate beneficiaries for your real estate via transfer on death deeds, beneficiary deeds or affidavits.

What works for you will depend on your family dynamics and your financial situation. Creating peace of mind for you and your loved ones is priceless. Minimizing costs associated with probate will help. Call us to discuss trusts and other ways to minimize or eliminate the pain of probate.

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William Hayes

As an attorney in private practice in Los Angeles County, California William Hayes provides extensive estate and tax planning services to individuals and businesses in Los Angeles, Pasadena, Glendale, Burbank and surrounding communities. Attorney Hayes’ primary focus is to help clients avoid probate, protect their assets, and provide for the security of their loved ones with a well-crafted estate plan. He believes in giving each client the time needed to explain his or her needs and wishes and then dedicates his efforts toward making the client’s desires clear in their final estate plan.

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