Throughout our life, the process of acquiring property and assets are common and often considerable for most of us. Upon death, there’s often a great deal or effort and concern placed into what will happen to their belongings and as to when these assets goes to when your death comes. With these issues being a growing concern for many people, one must therefore understand the essential and simple method as to how to avoid probate for all or any possession that you are going to leave behind. Though probate process is being considered to be complex and also time consuming, “avoiding” probate doesn’t need to be difficult at all.
Probate process is a process that is being administered from the public court system, which rightfully and legally distributes the assets of a diseased individual that is in accordance to their binding wills. Of course, undergoing trough these public system is generally difficult and very tedious, and often brings great concern for those who are involved with it. Fortunately, there are some easy and legal ways on how you can help your beneficiaries or living heirs avoid the trouble of undergoing these process. Knowing what these ways are and how to use them is often a very effective process to implement for any banqueted possessions. Below are some of the successful ways on how you can avoid probate:
‘Pay-on-Death’ Accounts and Registration
Converting your retirement accounts and bank account into a payable-on-death account is one of the helpful tools at hand to help you with our probate. Under POD account, money is automatically passed to the heirs/beneficiaries upon the death of its owner. You can do this by filling out a form in which you need to list your beneficiary. Whilst, when you die, the money will directly go to the beneficiary without the need to pass from the tedious probate process.
‘Transfer-of-Death’ Account and Registration
Applying for POD (pay-on-death) and TOP (transfer-of-death) are almost similar, but there’s a huge difference when it comes to the scope of this process. Unlike POD where the original owner’s money and bank accounts are being transferred to their heir when they die, in TOP, the owner’s “property” and “assets” are the one which is being passed on the beneficiary. Some states also do allows owner to name a TOD beneficiary for their vehicle, thus automatically transferring their car to their heirs instead of just sitting unused while waiting for the probate process.
Revocable Living Trust
Living trust is especially intended to help people make an ‘end-run around probate’. One of the best thing about holding your asset or property to trust is that, the trust property will no longer be part of your probate estate after your death. This is because trustee will own the trust property. After the original owner’s death, trustee can quickly and easily transfer the trust property to the family, spouse, relative, child that you left it to, yet without the need to undergo probate.