When planning your estate, you will probably conclude that probate is an inefficient process that is costly and time-consuming. Probate means that your beneficiaries will inherit a lower portion of your estate due to the costs involved. Understandably, many estate planners are curious about what they can do to avoid probate.
Several strategies can aid in probate avoidance. You may want to engage in multiple probate avoidance techniques to maximize the portion of your estate that will be able to bypass the process. The following are some of the most common probate avoidance techniques.
Joint tenancy
If you own property but you are not married, it’s a good idea to consider co-owning your property with your intended beneficiary. This is known as joint tenancy. It means that when one owner dies, the property will automatically belong to the surviving co-owner in its entirety.
Named beneficiaries
Certain accounts allow the account holder to name a beneficiary. For example, if you name a beneficiary on your bank account, the beneficiary will be entitled to the contents of the account at the end of your lifetime.
Revocable living trusts
One of the best ways to ensure that your assets avoid probate is to create a revocable living trust. This will involve you transferring the title to the property into the name of the trust. At the end of your life, these assets will be transferred to your beneficiaries.
If you are starting to plan your estate and you want to avoid probate, you should start to consider the different options and how they can benefit you. By taking early action, you will be able to tailor an estate plan that reflects your wishes.
