After a testator dies, their money or property goes through probate if they hold them under their name. Probate is when a court examines and authenticates a will.
Some people object to probate because it’s a lengthy, expensive process. It also subjects personal information to the public eye. If you don’t want your will to go through probate, there are five methods you can use to avoid it.
Establish community property with right of survivorship
In Texas and eight other states, married couples can share assets, aka community property with right of survivorship. Once one spouse dies, the surviving spouse takes ownership of said property.
Create a revocable living trust
What’s great about a revocable living trust is that it becomes effective immediately rather than after your passing. In addition, this method allows you to revoke it when necessary.
Give away property
If you decide to gift your property to a loved one before your passing, you can decrease the estate taxes your beneficiary owes. Plus, you can choose to put your property into a trust to gain more control over it and grant it to one or more responsible beneficiaries.
Name your chosen beneficiaries on your accounts
Sometimes known as POD (Pay-on-Death) designation, this technique involves creating bank, retirement and insurance accounts under the name of intended beneficiaries. Then, the money is transferred to them after your death.
Register your vehicle as TOD (Transfer-on-Death)
You can register your car, truck or jeep as TOD. Then, choose a responsible beneficiary who will automatically inherit it upon your passing.
Probate can be an arduous and costly procedure for many testators. Fortunately, you now know a few ways to circumvent it. Consider seeking legal assistance if you have any more questions about the intricacies of the probate process.