If you pass away, your assets may need to go through probate. This can be something of a time-consuming process, and there could be complications, such as challenges from beneficiaries or family members. They may get into a dispute, and these disputes need to be resolved, which could be costly or may create stress for your family.
As a result, you may be wondering if you can keep some of your assets out of probate. For instance, maybe you have a bank account with significant funds in it. What are some steps you can take to avoid probate and some of the conflicts that go along with it?
Making decisions in advance
The key is to address the account in advance and set it up so that things go smoothly. For instance, you can turn it into a payable-on-death account by making a beneficiary designation. Instead of going through probate, the account just transfers into the control of your named beneficiary. Other family members can’t challenge this designation, and it happens relatively quickly. This can speed up the process and give your family access to the funds that are in that account, and it can also reduce conflict levels because your intentions are clear.
Another tactic you may want to consider is taking the funds out of the account in advance, closing the account, and making other arrangements to transfer those funds. For instance, you could put them in a trust. The trustee is then in charge of making distributions to your beneficiaries in accordance with your wishes. This can also reduce conflict because there’s a plan in advance.
These are just a few of your options while doing your estate planning. Take the time to carefully consider the legal steps that are necessary and how you can create a plan that works well for your family.