How to Avoid PROBATE Of Estate ASSETS

Probate is the legal process that distributes the property from a deceased person to living persons. Completing the process of probate can be costly, time consuming and stressful for the ones you leave behind

However, there are many estate planning strategies that can be implemented while you are alive that will decrease the amount of assets that will eventually be required to go through the probate process.

Follow these steps to pass assets directly to the beneficiaries and avoid probate.

Things You'll Need

• See RESOURCES below for an easy ONLINE process to create a Living Trust
• See RESOURCES for COMPREHENSIVE Living Trust INFO site

Instructions

1. ~ Specify Beneficiary for Pay on Death (POD) Accounts ~

   A pay-on-death account lets you transfer the money in a bank checking and savings account (and some other accounts) outside of probate when you die. A document naming the beneficiary is signed at the bank. The funds in the account at the time of death will be immediately available to the beneficiary. You retain complete control of the account while alive.

2. ~ List heirs for Named Beneficiaries Accounts ~

   IRAs, Keoghs, 401(k)s, U.S. Savings Bonds and some pension plan assets allow you to list specific beneficiaries. The proper documents must be completed at each institution. At death, the assets will pass directly to the beneficiaries and avoid probate.

3. ~ Specify Intended Beneficiary for Life Insurance Proceeds ~

   The proceeds from a life insurance policy are paid directly to the beneficiaries and are not counted as part of the estate for probate.

4. ~ Complete Gifting of Assets Yearly ~

   Any person can give any other person up to $13,000 per year with no tax consequences for the giver or the receiver. You can lower the value of your probate estate by giving it away while you are still living to the people who would ultimately inherit it anyway.

5. ~ Transfer Assets to Living Trust ~

   A living trust is a legal entity which holds title to the assets on behalf of the beneficiaries. Once the assets have been transferred, the assets no longer belong to you - they belong to the trust. Therefore, the assets are not part of your estate for probate purposes and pass directly to the beneficiaries at death. You can be the named as the trustee of the account and control all assets while you are alive.

   See "Resources" below for an easy ONLINE process to create a Living Trust.

6. ~ Keep All Paperwork Up to Date ~

   You may not be able to avoid probate completely by using these techniques, but you may make your estate eligible for low cost summary probate procedures and make things much simpler for your heirs.

Resources

• Easy ONLINE process to create a Living Trust
• COMPREHENSIVE Living Trust INFO website