fbpx

How to avoid probate?

A lot of people are afraid of probate since the complexity it might create to obtain the legal inheritance of the distributed assets as well as the incurring probate court fees. However, it is
possible to avoid probate entirely. In this article, our lawyer team at Dev Smith Nguyen will point out some common approaches often carried out to enable asset distribution without
probate process.

Why do people want to avoid probate?

This is desirable for some people because doing so not only reduces legal fees, but it can mean avoiding the estate tax, which can take a significant amount of a very wealthy estate. Avoiding probate can also protect privacy, since some of the records may not be available to the public.

How to avoid probate?

One of the most popular ways to avoid probate is through the use of a revocable living trust. Assets are placed in the trust, but they can be used by the trust creator during his or her
lifetime. Upon death, assets in the trust are passed to the trust beneficiaries just by operation of the trust document. No probate is necessary.

The second way is through life insurance. The policies of life insurance enables the property to be passed outside of probate. Whoever you name as beneficiary on your life insurance policy will receive the death benefit directly with no probate process.

Third is retirement accounts which can pass outside of probate. The account owner names a beneficiary and that person then receives the balance of the account after the owner’s death. Payable on death accounts operate the same way.

Last but not least is via the jointly owned real estate. If you have determined the new possessor of your assets after death, you may include them as joint tenants. When the property has two owners and the first owner passes away, the second one automatically owns the property.

However, in general cases, most families will have some contact with a probate court whether or not a will was created as the process is streamlined and inexpensive.

Probate, Will, Living Trust, Estate Planning
Share on facebook
Facebook
Share on linkedin
Linkedin

Related Articles

what is a Power of Attorney?

What is a Power of Attorney?

The authorized agent can be subjected to full or limited legal power to make decisions about the principal’s property, finances or medical care.

Canceling a Power of Attorney

Canceling a Power of Attorney

To stop a POA you granted for another person, you should complete a revocation process. If you want to give up the power that you are given by the principal.

Will Maker, Estate Planning, Will Preparation, Beneficiaries, Heir

What is Estate Planning?

Estate Planning is regarded as an advanced arrangement of how all properties and investments are mange when someone passes away. This process is essential to avoid possible disputes and arguments in regard to these assets.

What is Probate? Processing of transferring property

What is Probate?

Probate is the process of transferring property legal title from the decreased person to their heirs or beneficiaries

What is a Power of Attorney? How can I make a Power of Attorney?

What is a Power of Attorney?

The power of attorney is frequently used in the event of illness or disability, or when you can’t be present to sign necessary legal documents for financial transactions.

Follow us

Let Our Experience Be Your Guide 

Get Your First Consultation Now

Legal Insight

Changing Will
How do I change my Will?

Depending on the significance of the change that you would like to make, two different approaches are proposed to enable updates to your Will

Subscribe to our newsletter

Save time

Book Appointment

Whether you want to book an appointment or get enquire, just go from here.

iLawyer

Go online and self-book to join your appointment by remote video or phone call.

We can help

Scroll to Top

Request a call back now