Avoid Probate

The best way to avoid probate is to decide all these issues ahead of time with a revocable living trust centered estate plan or a transfer on death (TOD) designation.

A revocable trust is a legal arrangement where a trustee holds and manages assets for the benefit of one or more beneficiaries. A testamentary trust can also provide asset protection to beneficiaries. As part of a revocable living trust centered estate plan, it will also provide protection for you during incapacity, avoiding costly and stressful guardianship or conservatorship hearings. 

The assets in a trust are not part of the probate estate, so they are not subject to the probate process.

A TOD designation is a legal mechanism that allows an individual to transfer ownership of certain assets, such as bank accounts or securities, to a designated beneficiary upon their death, without going through probate.

If you have a trust, then you should consider creating a pour-over will. This type of will allows assets that were not transferred to a trust during the client's lifetime to be transferred to the trust at death. Unfortunately, a probate will still be required for assets not in Trust, but it allows those assets to be distributed according to the terms of the trust.

Review and update all beneficiary designations on retirement accounts, life insurance policies, and other assets that have a beneficiary designation, to ensure that they align with your overall estate plan.

It's important to note that estate planning does require a certain level of investment in terms of money and time, but it can save significant time, money and stress for the heirs in the long run. An estate plan that avoids probate can also help ensure that your assets are distributed according to your wishes and in a timely manner, which can provide peace of mind for the you and your loved ones.

Next: Consequence of Not Probating an Estate