Probate-Avoidance Devices
Probate Avoided Devices are actually procedures you can take to have some assets transfer to a beneficiary without need of probate (i.e., by your Will or if you have no Will). Even if you have a Will, by using these devices and reducing the amount of assets in your estate you may qualify your family to probate your estate as a “small estate” which is much less expensive and a shorter process than full probate.
The goal with is to title your assets, or the beneficiary designation, so that each asset automatically goes to a chosen beneficiary(ies) upon your death, with no need for court intervention. Bank accounts, securities, motor vehicles, real property, can all be owned by two or more people as joint-tenants so that when you as one of the owners dies the survivor(s) automatically own the property. Accounts of all kinds have beneficiary designations that allow your beneficiary to automatically become the owner of the asset at your death.
Talk to an estate planning attorney about these options:
- Real Property. Real property requires no probate if you hold the property with anyone else as “tenants by the entirety” or with your spouse as “joint tenants with right of survivorship.”
- Bank Accounts, Securities (stocks, bonds, brokerage accounts). You can arrange to have these accounts set up in joint tenancy. In the alternative, you can name one or more persons on any account to be a beneficiary directing the account to “pay on death” (POD) all of the money in the account at your death.
- Personal Property. If you want a motor vehicle, boat, or airplane to be transferred to another person at your death, this can be accomplished by filing a registration form placing the property in both your name and that of the beneficiary.
- Insurance and Retirement Plans. Life insurance proceeds can be payable to a named beneficiary upon the death of the insured. For retirement or IRA accounts, name your primary beneficiary and anyone else as contingent beneficiaries.
Is it Really This Simple?
Actually, each of the above methods requires further information so that you comply with law and your beneficiaries avoid the taxation pitfalls some of them entail. Be sure to speak with an estate planning attorney to determine if a Will with these probate-avoidance devices is the right decision for you.
Contact Information
Please contact my office to schedule a free initial consultation at (541) 686-2634, or by email at mstylos@stylos-law.com. I look forward to hearing from you.