Probate court is more than a headache; it’s a terrible experience where family members and loved ones have to battle over assets in a person’s estate. It usually ends in heartache, empty wallets and strained relationships between friends and family.
It makes sense that people would do whatever they can to prevent probate court for their friends and family. And luckily, there are several ways to secure your estate and avoid probate at the same time.
Revocable living trusts
First, you may want to establish a revocable living trust, where you transfer your property title into a trust. You can manage and control the trust as a trustee until you eventually pass or cannot control the trust any longer. Once that happens, the trust transfers to another trustee who will distribute the assets to the named beneficiaries. It’s an excellent way to ensure a specific person or group receives your property, like a family home.
Joint tenancy and tenancy by the entirety
Joint tenancies are legal arrangements where two or more people share the rights to a property. If one person dies, the other person (or group members) inherits all the rights to the property. If you want to ensure a friend or family member inherits your property, you should file a joint tenancy for that specific property. That way, they don’t have to fight for it in court.
Tenancy by the entirety is similar but only applies to married couples. For example, if you have a tenancy by the entirety on a family home, your spouse would receive full ownership after your passing, or vise versa.
Naming beneficiaries in your will
Wills are one of the primary documents in a person’s estate so that the court will follow a person’s will as carefully as possible. Wills can also ensure that your beneficiaries receive the assets they deserve if you name them appropriately. You may have to work with insurance companies or other institutions to name the right recipients for your assets.
These techniques are useful and practical for most estate holders. However, they are not guarantees against probate court. To know your options for your specific estate, you need to consult with the right planners. It may save your family from years of financial and emotional pain.
