How To Avoid Probate With Proper Planning

Probate can be a time-consuming and costly legal process that many families prefer to avoid. By taking some clear and practical steps, our Maryville, TN probate lawyer can reduce the chances that our loved ones will need to go through probate after we pass. Proper planning helps us protect our assets, support our family’s future, and give ourselves peace of mind.

Set Up A Revocable Living Trust

One of the most effective ways to avoid probate is by creating a revocable living trust. When we transfer ownership of our assets to the trust, they are no longer part of our estate when we pass away. That means those assets can be passed directly to our beneficiaries without going through probate. A trust also gives us flexibility during our lifetime, as we can update it or revoke it at any time if our wishes change.

Use Beneficiary Designations

Many types of assets allow us to name a beneficiary directly. These include retirement accounts, life insurance policies, and bank accounts with payable-on-death (POD) or transfer-on-death (TOD) features. By naming beneficiaries on these accounts, the funds go directly to those individuals when we pass—outside of probate. We must review these designations regularly and keep them up to date, especially after major life events like marriage, divorce, or the birth of a child.

Hold Property Jointly With Right Of Survivorship

Joint ownership with right of survivorship is another tool that can help avoid probate. When property is owned this way, it automatically passes to the surviving owner upon one owner’s death. This can apply to real estate, vehicles, and even some bank accounts. It’s a simple strategy, but one that needs to be used carefully. We should make sure joint ownership reflects our long-term plans and doesn’t create unintended consequences.

Give Gifts During Our Lifetime

Giving assets away while we’re still living is another option to reduce the size of our estate and, in some cases, avoid probate. There are federal limits to how much we can give each year without triggering gift taxes, but strategic gifting can be a practical way to pass along property or funds to our loved ones. It also allows us to see the benefits of our generosity during our lifetime.

Keep Records Organized And Accessible

Even with a solid plan in place, our records must be well-organized. We should keep copies of our trust documents, beneficiary designations, property titles, and other relevant paperwork in one place and make sure someone we trust knows where to find them. Clear documentation helps avoid confusion and delays and makes it easier for our family to follow our wishes.

Review And Update Your Plan Regularly

Our lives change, and our estate plans should change with it. We should revisit our documents every few years or after major life events. Reviewing the plan with an attorney can help make sure our goals are still being met and that any legal updates are reflected in our documents.

If you’re ready to take practical steps to protect your loved ones from the probate process, reach out to Carpenter & Lewis PLLC today. We’re here to help you create a plan that works.