What is Probate?

Probate is the legal process through which a court determines the validity of a will and oversees the distribution of a person's assets after their death. If the person who died (the "decedent") had a valid will, the probate process will involve distributing their assets according to the terms of the will. If the decedent did not have a valid will, their assets will be distributed according to the laws of intestate succession in the state where they lived.

During probate, the court will appoint an executor or personal representative to manage the decedent's estate. The executor is responsible for gathering the decedent's assets, paying any debts and taxes, and distributing the remaining assets to the beneficiaries.

Probate can be a lengthy and expensive process, and it is typically necessary when the decedent owns significant assets in their name. However, there are ways to avoid probate through estate planning, such as creating a trust or transferring assets to joint ownership with the right of survivorship

How can you avoid probate?

There are several ways to avoid probate:

1.  Use a revocable living trust: A revocable living trust is a legal document that allows you to transfer ownership of your assets to the trust during your lifetime.

2. You can act as the trustee and manage the assets in the trust, and you can also change or revoke the trust at any time. Upon your death, the assets in the trust will pass to the beneficiaries named in the trust document, without the need for probate.

3. Transfer assets to joint ownership: You can transfer ownership of certain assets, such as bank accounts and real estate, to joint ownership with the right of survivorship. This means that when one owner dies, the other owner automatically becomes the sole owner of the asset. These assets will pass to the surviving owner outside of probate.

4. Use payable-on-death (POD) or transfer-on-death (TOD) designations: Some financial institutions allow you to designate a beneficiary for certain accounts, such as checking and savings accounts, through POD or TOD designations. Upon your death, the assets in these accounts will pass directly to the designated beneficiary, without the need for probate.

Estate planning is an important way to ensure that your assets will be distributed according to your wishes after your death, and avoiding probate can be an important part of this process.