When drafting estate plans, some people may choose to avoid probate due to the length of time it will take for the probate to get resolved, or the costs involved with the process. A recent article discusses several estate planning maneuvers that will keep your assets out of probate.
Joint Accounts
A joint account is where two or more people hold property jointly titled with a right of survivorship. Such property is not subject to probate because the transfer is automatic. If you have a joint account, be sure that the language in your will is consistent with the ownership rights created by the joint account.
POD & TOD Accounts
Accounts that are titled either payable-on-death or transfer-on-death are another way to easily transfer assets such as bank accounts and securities. When setting up this type of account, the owner simply designates who the account should be payable on his or her death. For the lifetime of the owner, the beneficiary has no right to the account.
Gifts
Another way to reduce the portion of your estate that goes through probate is to gift it away while you are still living. In 2013, a person can gift up to $14,000 per recipient to as many recipients as he or she chooses. A married couple can gift a total of $28,000 per recipient.
For assistance with crafting an estate plan that will avoid probate, contact us at (626) 696-3145.
