Probate can be complex and costly, depending on the estate’s size and the details of each asset. Sometimes, this process is necessary, especially if the decedent did not create any legal arrangements allowing properties to forego it.
Other times, the asset’s type and details can allow it to skip this process, possibly exempting it from other associated procedures. The decedent can consider this information and prepare during their life, using the following ways for their assets to skip probate later after their death:
- Revisit details of financial products to name a beneficiary, such as life insurance policies, bank accounts and retirement funds.
- Establish a trust containing properties and assets after choosing an appropriate trust type to meet specific objectives.
- Create ladybird deeds over eligible properties to designate beneficiaries for them.
- Gift specific properties or assets to intended heirs while still alive, which can have tax implications based on value.
There can be other ways for an estate to forego probate, but the appropriate approach can vary. The most significant factors to consider are the estate’s size and asset details. In some instances, more elaborate estate planning strategies could be helpful, especially if the overall estate value is considerable.
Using estate planning tools that work
Although avoiding probate can be a reasonable goal, it is not always the most effective. Sometimes, establishing legal arrangements for the estate could become more costly than probate’s associated expenses. Instead of taking measures to skip probate, seeking experienced guidance could be more beneficial. Doing so could help determine what estate planning tools would work best based on the decedent’s needs and estate, allowing them to choose the most effective options.