It is very important to avoid probate. You may think that a Last Will avoids probate after you pass away – but it does not. Everyone pictures a scene out of a movie where the executor reads the Will to the family, and then everyone gets their inheritance. It is never that simple in real life! If you own a home, and you only have a Last Will, your estate will likely go through probate to distribute your assets to your family after you pass away.

Probate is a public proceeding, and the Probate Court supervises the administration of your estate. Your Last Will becomes a matter of public record, so your information is not confidential, including information about your assets and who you are leaving them to.

There are significant costs associated with probate. The Probate Court requires fees to administer your estate. Accountants, attorneys, appraisers, liquidators, and realtors may all be involved, and they all need to be paid.

There are several ways to avoid probate and arrange for a smooth, direct, and efficient transfer of your assets, which will save your family thousands of dollars. Here are some ways to avoid probate and save your loved ones a lot of money and time:

  • Living Trust
  • Joint Tenancy on Bank Accounts
  • Pay on Death (POD) Beneficiary Designations on Bank Accounts
  • Transfer on Death (TOD) Beneficiary Designations on Investment Accounts
  • Beneficiary Designations on IRAs and 401(k)s
  • Beneficiary Designations on Life Insurance
  • Holding Real Property as Joint Tenants with Right of Survivorship

The best way to avoid probate is with a Living Trust!

A Living Trust helps to avoid the fees, costs, delays, and publicity associated with probate. Living Trusts are usually administered outside of the Probate Court, so your family’s privacy is protected. Living Trusts distribute assets much quicker because they are not subject to the delays of The Probate Court. The average trust can be administrated in 6-9 months – while a Probate Court proceeding can take up to 2 years!

Living Trusts are much less expensive to administer than probating an estate. And while the cost of establishing a Living Trust can be more than establishing a Last Will, you will save your family a lot money in the long run if you create a Living Trust now and avoid probate.