Estate Planning as a Career

Probate is a legal process used to ensure property belonging to an individual who has died is accounted for and properly distributed to beneficiaries. During probate, assets must be inventoried and creditor claims, tax liens and outstanding debts must be paid in full before property is released to heirs.

Probate laws vary from state to state and are governed by county and state Probate Courts. Depending on the circumstances and size of the estate, assets can be tied up in probate for six to eighteen months. Many people believe if they file a Last Will and Testament their estate will be exempt from the probate process; however, this is not the case.

One way to ensure your estate will not be held in probate court is to file a revocable living trust. When setting up a living trust, legal title to your property is transferred into the trust and administered by a Trustee. You can designate yourself or someone else as the Trustee. If you designate another individual as the Trustee, they will not have access to your property until you die.

Using a revocable living trust allows you to specify beneficiaries whom you want to inherit your personal belongings and property. Assets transferred to the trust are not considered part of your estate and avoid the probate process. Upon your death, the Trustee can easily distribute assets to designated beneficiaries.

Keep bank accounts out of probate by setting them up as Payable-on-Death. POD accounts can be setup through the bank by filling out a simple form to designate the person you want to inherit the money in your accounts. Typically, spousal joint bank accounts automatically transfer to the surviving spouse. However, to be on the safe side, file a payable-on-death form with the bank to assign your spouse as the beneficiary.

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