Creative Ways to Pass On Your Wealth Without Probate
Probate is the legal process of distributing a deceased person’s assets and paying off their debts. It can be a time-consuming and expensive process, so many people want to avoid it if possible.
What are some ways to avoid probate?
There are a few ways to avoid probate, including:
- Creating a revocable living trust. A revocable living trust is a legal document that allows you to name a trustee to manage your assets during your lifetime and after your death. Assets that are titled in the name of the trust will avoid probate.
- Owning assets jointly with right of survivorship. This means that when you die, your assets will automatically pass to the surviving joint tenant, without going through probate.
- Designating beneficiaries for retirement accounts and life insurance policies. When you designate beneficiaries for these accounts, the assets will pass directly to the beneficiaries named on the account, without going through probate.
- Making small gifts of assets during your lifetime. You can gift up to $16,000 per person per year without having to pay gift tax. This is a way to gradually transfer assets out of your estate and avoid probate.
If you have a small estate, you may also be able to avoid probate through a process called small estate administration. Small estate administration is a simplified process for distributing the assets of a deceased person who has a small estate.
If you are unsure whether or not you need to go through probate, it is always best to consult with an attorney. They can help you assess your situation and determine the best course of action.
This information is for general guidance only and should not be considered legal advice. Contact us today to discuss your specific situation.