| Probate is the process whereby wills are filed and administered through the probate court upon the death of the testator. The process can be time consuming and expensive. The answer to avoiding probate is more extensive than I can covered here, however, below are a few tips.
How you title your assets is the key to avoiding probate:
- Joint and survivor bank accounts, real estates, stocks, and mutual fund accounts all avoid probate. At the death of an account holder, the account is automatically transferred to the survivor.
- Transfer-on-account deeds, as now authorized in Ohio, will avoid probate. Also payable-on-death bank accounts and stock accounts.
- Life insurance with a named beneficiary will avoid probate. The life insurance company will pay the death benefit directly to the named beneficiary.
- Retirement plans and IRA’s also typically have named beneficiaries and avoid probate.
There can be income and estate tax consequences to all these transfers and every estate plan is different. Contact us to work with an experienced estate planning attorney who will go over your individual needs.
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