What Do You Understand From Probate?
Probate is a legal procedure where a court oversees the distribution of the property after the person’s death. A court appointment is for someone to make sure that all debts of the person are paid and the remaining property is distributed to the proper parties. There are some costs involved in probate which are filing fees, attorney fees, and newspaper publication charges. For an average estate, it might take somewhere around six months to two years.
Tips To Avoid Probate
Give away property
One other way to avoid probate is that the owner distributes the property before death. You cannot give all of your property obviously to make your living. The main drawback of the gift is that you cannot use it any longer. If you intended to gift to the recipient share of your estate, you don’t state in the writing, the recipient may be able to claim a share of the property to be probated.
Establish Joint Ownership For Real Estate
Property that is jointly owned will avoid probate. If one owner dies, your property will pass to the remaining owner. You should do real estate planning in advance to avoid probate and make hassles-free legal matters for your property beneficiary. There are three types of joint ownership:
Joint tenancy with the right of the survivorship
The title passes to the other owner when the first one dies.
Tenancy by the entireties
This is much similar to the joint tenancy but only applied to married couples.
Community property only for a married couple
This is only for the property belonging to the states such as Alaska, California, Arizona, Nevada, Idaho, Texas, and Winston.
Joint ownership for other property
Any property can be held jointly such as boats, motor vehicles, securities, and financial accounts. It is pretty much similar to joint ownership, In this, the title passes to the other owner when the one dies. It must be made sure that survivorship ownership is intended. Boats, motor vehicles, and other items have a title document that similarly indicates ownership as real estate. Joint owners have equal property rights.
Pay on-death financial accounts
For bank and financial accounts, it is possible to designate someone to make a beneficiary in the event of death. This is called pay on death (POD). In this, the beneficiary does not have the right to the property until the death occurs. In this, a simple bank form is filled up and the beneficiary gets all the bank money when the person dies. You may designate beneficiary but you may not designate successors in it.
Transfer on death securities
A beneficiary designation for property and not for financial accounts is called a transfer on death and the beneficiary does not have any rights for taking money from the financial account. All states except Texas and Louisiana have adopted the Uniform transfer on death securities registration act for bonds, stocks, and other securities. A joint owner can take the benefits after the death but not the successors.
Transfer On Death For Real Estate
TOD beneficiary is designated in some states of the US such as Arizona, Alaska, Colorado, Hawaii, Illinois, Kansas, Indiana, Missouri, Minnesota, Nebraska, and many more. It requires the execution and recording of a transfer on the deadly deed.
A living estate is found best for an estate when there are so many beneficiaries. To avoid probate, people often make a living trust and it is commonly called a revocable living trust. In this trust, people have the right to give up the right and revoke it. To create a revocable living trust, you have to execute a document and make your trust a separate entity for you. You control the property while you are alive. Upon death, a person you appoint as a successor ensures that property is transferred to the designated person. For better help in this manner, you can appoint a probate attorney for getting clarity and legal assistance in your probate issue. Attorney fees can be higher but it depends upon the property value and can be lesser as well.
Make a will
Your will does not avoid probate but it is an important part of your plan to minimize the cost of the probate. Although you can avoid probate for one’s property sometimes, it becomes difficult to avoid probate in large property values and some part of the value goes to the probate in such cases.
Take Advantages Of Small Estate Provisions In Law
Many states have simplified procedures for a certain type of property, a certain type of value, and or if anything is left to a surviving spouse. All of these techniques will have some complications that you might need to face. There can be various tax considerations and spouses have rights in some properties which may stop transfer to others.
First of all, you must understand the different rules made to avoid probate. Also, different states have different rules to avoid probate. So, if you have a big family and have lots of legal issues in transferring ownership to the right member, consult with a probate attorney for the best results. Hawaii Foreclosures is a one-stop solution for that.