Transferring Assets Outside Of The Probate Process - Part 1

 

Transferring assets outside of the probate process can not only save the estate a lot of time and expense, but can also help loved ones avoid years of legal hassle. This 2 part series of articles will address the four general ways to pass on your property and avoid the probate system:

 

• Joint Property Ownership
• Death Beneficiaries
• Revocable Living Trusts
• Gifts

 

Part 1 in this series will address avoiding the probate process through  Joint Property Ownership and Death Beneficiaries.

 

Joint Property Ownership

 

Jointly owned property with the "right of survivorship" avoids the probate process for one very simple reason: upon death, the deceased joint owner no longer owns the property and it passes to the living joint owner. There are several ways to do this, and the chosen method will depend on what a particular state recognizes.

 

To create any of these forms of joint ownership with a right of survivorship, states typically require a written document that sets out the joint ownership relationship, the property that is jointly held, and the right of survivorship.

 

Here are the most common forms of joint property with a right of survivorship:

 

• Joint Tenancy with Right of Survivorship: as the name suggests, you take property as "joint tenants" and upon the death of a joint tenant, the surviving tenant takes the deceased tenant's portion.
• Tenancy by the Entirety: this is a form of ownership only available to married couples (and some same-sex couples in a few states). It works in much the same way as a joint tenancy with a right of survivorship, in that effectively upon the death of one spouse, the living spouse takes the deceased spouse's portion.
• Community Property: in community property states, married couples can hold property as community property with the right of survivorship. It has the same effect upon the death of one spouse as a tenancy by the entirety, where the surviving spouse takes full ownership of the property.

 

Death Beneficiaries

 

Many types of financial assets and instruments allow you to designate a beneficiary upon your death. Upon your death, these assets become the property of whomever you designate as the beneficiary, are no longer a part of your estate, and thus avoid probate entirely.

 

Here are some of the most common financial assets that allow you to do this:

 

• Payable on Death (POD) Accounts: as the name suggests, POD accounts are simply accounts with an instruction that upon your death, the account shall be inherited by a beneficiary that you name. They are extremely simple to set up, with most banks simply requiring that you fill out a form naming the beneficiary. The beneficiary simply shows up to the bank with the proper identification and collects the account upon your death.
• Retirement Accounts: an increasingly popular option to avoid probate is the use of retirement accounts, specifically IRA and 401(k) accounts. When you establish these accounts, you will be asked to name a beneficiary of the account upon your death. As a single person, you are free to name whomever you want, but be aware that as a married person, your spouse may inherently have a right to some or all of the money in a retirement account.
• Transfer on Death Registrations: many states allow you to transfer securities (stocks, bonds, brokerage accounts) as well as vehicles without going through probate. Much like POD accounts, you will sign a registration statement that declares who you want your securities or vehicles to pass to upon your death.

 

Call your Amarillo probate attorney today

 

Not sure how to avoid the probate process or if you even should? Don't worry. Many people have similar questions and go through the same line of questioning when deciding how to make their estate plan. It can be and often is critical that you get legal help understanding the basics of the probate process. The best way to get this understanding is to contact an experienced probate and estate administration attorney near you. Stop and take a breath and call a probate attorney who has had decades of experience filing for probate in the state of Texas.  Pick up the phone and call Amarillo Attorney Bill Cornett.  Bill is your choice as an experienced probate attorney in Amarillo and the Texas Panhandle.  Don’t waste another minute.  Call him today.

 

Your most important action may end up being the phone call that you make to your Amarillo wrongful death lawyer.  In the Texas Panhandle that call should be to Amarillo wrongful death lawyer Bill Cornett.  Be safe and be smart…remember these phone numbers (806) 374-9498 or (800) 658-6618.

 

Put Cornett Law Firm’s 45+ years of experience to work for you

 

Bill Cornett, Amarillo Attorney with Cornett Law Firm, offers affordable, qualified services as an experienced personal injury lawyer, probate attorney, family law attorney, criminal law attorney, DWI attorney and divorce attorney. Bill also has experience in estate planning and agriculture law. Sit down with Bill at his office located at 612 S. Van Buren St. in Amarillo TX by calling (806) 374-9498 or (800) 658-6618 TODAY to schedule a free consultation.