Estate planning should involve protecting loved ones from probate as much as possible, since this legal process of disbursing assets after your passing can be time-consuming, expensive, and public. But there are still effective and creative strategies available that could make your departure less taxing for those you leave behind. We will look at five strategies to make it that much simpler.
Create a Living Trust
A living trust is like the Swiss Army knife of estate planning, its many uses make it efficient. When creating one, assets can be put in it while you’re alive and designating yourself as the trustee. After death the successor trustee can manage them efficiently for you and quickly distribute to beneficiaries without going through probate proceedings. Saving both time and money as well as remaining private so as not to publicize affairs that would otherwise remain open records.
Designate Beneficiaries
Naming beneficiaries might seem like estate planning 101, yet many people overlook its ease. By designating beneficiaries on accounts such as life insurance policies, retirement funds and bank accounts, you ensure those assets bypass probate altogether. The process is easy, simply fill out a form from your financial institution. Be sure to update it periodically with any life changes such as marriage, divorce or newfound loved nieces or nephews.
Joint Ownership
Isn’t life better when we share it? Joint ownership allows you to share property with another, such as your spouse or children, without incurring probate court. Depending on the circumstances, look between the different types of joint ownership. Like joint tenancy with right of survivorship, tenancy by the entirety (for married couples), or community property with right of survivorship can all provide options that fit better than probate court would.
Transfer-On-Death Deeds and Accounts
TOD deeds and accounts provide another simple means of bypassing probate court. Through TOD deeds, real estate property passes directly to its designated beneficiary upon your death. Similarly, TOD accounts allow securities and financial instruments to pass directly into beneficiary hands without subjecting probate proceedings. But you maintain control while you still live.
Quitclaim Deed
A quitclaim deed provides an efficient method for transferring ownership of property without lengthy legal processes or fees. Quitclaim deeds can be useful tools in cases involving family. Be mindful that this deed does not guarantee clear title to the property. Rather, it simply transfers your interest in it to another individual or entity. Any outstanding debts or claims against it must still be addressed. In order to file a quitclaim deed, it’s important that the appropriate documents be completed, signed, notarized, and submitted for filing. Though this process is relatively straightforward, you should consult a legal professional, but you can find out more here on Deeds.com Quitclaim Deed Forms.
Conclusion
Avoiding probate doesn’t have to be onerous or complex, all it requires is some smart planning and moves. Everything from creating a trust and designating beneficiaries, through joint ownership and TOD arrangements and quitclaim deed strategies can provide benefits specific to estate planning needs. From protecting families from the bureaucratic burden of probate proceedings or saving them extra court costs with these tools, planning now could mean big savings and peace of mind later.
