Navigating the transfer of property after a loved one’s death can be challenging. The probate process is often necessary to distribute a deceased person’s assets. However, some circumstances allow for the transfer of property without going through probate, simplifying the process for beneficiaries.
When it’s possible to avoid probate
Small estates may bypass probate through a process called an “affidavit for collection of small estates.” This is an option if the total value of the estate is less than $100,000. However, the option excludes certain properties, such as joint tenancy and payable-on-death accounts. Beneficiaries may file an affidavit with the appropriate court to claim assets and avoid formal probate.
Joint ownership and beneficiary designations
Another way to avoid probate is through joint ownership with rights of survivorship. If the deceased person owned property with someone else, the property passes to the surviving owner without probate. Additionally, assets like life insurance policies, retirement accounts, and bank accounts with designated beneficiaries can transfer to the beneficiaries and bypass probate.
Trusts as a probate alternative
When you place a property in a trust, a trustee for the beneficiaries manages the assets. This allows for the transfer of assets without the court’s involvement. This approach not only avoids probate but can also offer greater privacy and control over how the estate is distributed.
A broader perspective on estate planning
It is possible to transfer property without probate. However, careful planning is crucial to guarantee the legal requirements. Exploring alternatives to probate can create a smoother asset transition and preserve the value of your estate.