Probate is a legal process that ensures a deceased person’s assets are distributed according to their will, or, in absence of a will, according to state laws. This process can be lengthy, expensive, and public. Strategically planning your estate can help you avoid probate, ensuring a smoother, quicker, and private transfer of your assets to your heirs.

Estate Planning Strategies to Avoid Probate:

1. Establish a Living Trust: A living trust is a powerful tool in avoiding probate. By placing your assets in a trust, you maintain control over them during your lifetime. After your death, these assets can be transferred to your designated beneficiaries by a successor trustee you appoint, without the need for probate. This not only expedites the transfer process but also keeps it private, away from the public records of a probate court.
2. Designate Beneficiaries on Accounts: Many financial accounts, such as retirement accounts and life insurance policies, allow you to name beneficiaries directly on the account. These are known as “payable on death” (POD) or “transfer on death” (TOD) accounts. Upon your death, the assets in these accounts bypass the probate process and go directly to the named beneficiaries, significantly simplifying the distribution process.
3. Joint Ownership with Right of Survivorship: Holding property as joint tenants with the right of survivorship means that upon the death of one owner, the property automatically passes to the surviving owner(s) without going through probate. This method is commonly used by spouses and can be applied to real estate, vehicles, and bank accounts.
4. Gift Assets During Your Lifetime: Gifting assets while you are alive can reduce the size of your estate that would be subject to probate. You can give up to the annual gift tax exclusion amount to as many people as you like each year without incurring a gift tax. This strategy not only helps in reducing the taxable estate but also allows you to see your beneficiaries enjoy your gifts during your lifetime.

Adam M. Brown, Esq is an experienced estate planning attorney and can help you determine the best strategies for your specific circumstances, ensuring your estate is handled according to your wishes and your heirs are protected from the burdens of probate.