3 Ways to Avoid Your Estate Entering Probate
Posted on: 20 January 2017
Probate is a legal term which refers to the process of 'proving' a deceased person's will. The probate process is carried out by a special probate court. After death, estates enter probate when the court is appointed to act as the administrator. A court is usually appointed to act as the administrator if a will does not exist or if the will is contested by family members or other interested parties.
Probate can be a lengthy process which can result in additional legal fees and taxes. If you would like to simplify your estate and avoid your estate entering probate, you should consider taking the following steps.
Asset transfer
If you have assets which you wish to leave to family members, you should consider carrying out an asset transfer before you pass away. Of course, you will not be able to transfer everything you own over to your loved ones, but it is possible to transfer large bequests such as residential property while you are still living. You can then draw up a separate legal agreement which will grant you the right to remain in your home until you die. By transferring large assets such as your home to family members before you die, you can reduce their exposure to inheritance tax and avoid the family home being subject to probate court proceedings.
Co-ownership
If you do not wish to carry out a full asset transfer of your property, you should consider establishing co-ownership. If you register as a co-owner of your property with your partner, your children or other relatives, the full ownership of the property will pass over to them when you die. Co-ownership helps to avoid to avoid any argument if your will is contested, as the legal agreements are already in place.
Pay on death bank account
If you have large sums of money that you wish to leave to a family member and you want them to have immediate access to the funds, you should consider opening a 'pay on death' bank account. A 'pay on death' bank account operates like any other checking or savings account but has one significant benefit. A named family member will have immediate access to any money in the account from the time of your death. A 'pay on death' bank account helps you to immediately pass on money which may be needed to pay for funeral arrangements.
If you would like further information about estate planning, contact a lawyer today.
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