Probated - Tips For Keeping Estate Assets Out of Court
Probated refers to the process and laws governing distribution of assets upon death.
When a person dies everything they own is held in probate.
Assets cannot be distributed to heirs until a judge grants authorization.
The process is used to validate the decedent's Last Will, obtain property values, pay outstanding debts, and record property transfers.
Probated estates are administered by representatives named within the Will.
The Administrator might be a relative, friend, attorney, or professional estate planner.
The estate executor is responsible for carrying out many duties and will usually require some assistance from a lawyer.
The probate process is infamous for dragging on for months.
Complex estates can be tied up for years.
Experts claim nearly 85-percent of heirs never see a dime of their intended inheritance when an estate ends up in probate.
Creditors, lawyers, and estate administrators are paid before heirs.
Several strategies exist to keep assets out of probate.
It is recommended to consult with an estate planner to determine the best course of action.
Oftentimes, banks offer a complimentary session to review financial assets and offer suggestions.
A preferred plan is to establish a trust.
Many types of trusts exist, but the most common include living trusts and irrevocable life insurance trusts.
The last will is placed inside the trust.
Living trust assets include titled property such as automobiles and real estate.
Assets are owned by the trust; not the decedent and are automatically transferred to named beneficiaries.
Irrevocable life insurance trusts include a contract used to administer the policy on behalf of named beneficiaries.
The Will is placed inside the trust; allowing assets to bypass probate.
Death benefits are exempt from estate taxation.
Beneficiaries can be designated for checking and savings accounts, investment portfolios, and individual retirement accounts.
Account holders can establish payable on death (POD) beneficiaries for checking and savings accounts by filling out a form through their financial institution.
Individuals with life insurance policies, individual retirement accounts (IRA), 401k and annuities can establish transfer on death (TOD) beneficiaries.
In some states, TOD can be established for motor vehicles including cars, boats, motorcycles and RVs.
Otherwise the property will need to be jointly titled.
Upon death, the survivor can present the death certificate and have the vehicle titled in their name.
Rights of survivorship can keep real estate holdings from being probated.
Survivorship rights allow property to automatically transfer to the named beneficiary.
Other names include Tenants in Common, Tenancy in Common and Joint Tenancy.
Death is never easy to deal with.
Dealing with probate after losing a loved one only prolongs the grieving process.
Taking steps to keep your estate out of probate is the best gift you can give your loved ones.
When a person dies everything they own is held in probate.
Assets cannot be distributed to heirs until a judge grants authorization.
The process is used to validate the decedent's Last Will, obtain property values, pay outstanding debts, and record property transfers.
Probated estates are administered by representatives named within the Will.
The Administrator might be a relative, friend, attorney, or professional estate planner.
The estate executor is responsible for carrying out many duties and will usually require some assistance from a lawyer.
The probate process is infamous for dragging on for months.
Complex estates can be tied up for years.
Experts claim nearly 85-percent of heirs never see a dime of their intended inheritance when an estate ends up in probate.
Creditors, lawyers, and estate administrators are paid before heirs.
Several strategies exist to keep assets out of probate.
It is recommended to consult with an estate planner to determine the best course of action.
Oftentimes, banks offer a complimentary session to review financial assets and offer suggestions.
A preferred plan is to establish a trust.
Many types of trusts exist, but the most common include living trusts and irrevocable life insurance trusts.
The last will is placed inside the trust.
Living trust assets include titled property such as automobiles and real estate.
Assets are owned by the trust; not the decedent and are automatically transferred to named beneficiaries.
Irrevocable life insurance trusts include a contract used to administer the policy on behalf of named beneficiaries.
The Will is placed inside the trust; allowing assets to bypass probate.
Death benefits are exempt from estate taxation.
Beneficiaries can be designated for checking and savings accounts, investment portfolios, and individual retirement accounts.
Account holders can establish payable on death (POD) beneficiaries for checking and savings accounts by filling out a form through their financial institution.
Individuals with life insurance policies, individual retirement accounts (IRA), 401k and annuities can establish transfer on death (TOD) beneficiaries.
In some states, TOD can be established for motor vehicles including cars, boats, motorcycles and RVs.
Otherwise the property will need to be jointly titled.
Upon death, the survivor can present the death certificate and have the vehicle titled in their name.
Rights of survivorship can keep real estate holdings from being probated.
Survivorship rights allow property to automatically transfer to the named beneficiary.
Other names include Tenants in Common, Tenancy in Common and Joint Tenancy.
Death is never easy to deal with.
Dealing with probate after losing a loved one only prolongs the grieving process.
Taking steps to keep your estate out of probate is the best gift you can give your loved ones.
