If you were to pass away without an estate plan, your assets would go through probate court. Probate is required when someone passes away with assets in their name; it is the process of getting those assets transferred to the deceased’s heirs or beneficiaries. Probate can be expensive, time-consuming, and emotional. If you have a will, the probate process is a lot easier, but there are still court costs and hearings involved. So, how can you avoid probate in Alabama?
Own Assets Jointly with Someone Else
Many house deeds and joint bank accounts have a right of survivorship. The right of survivorship basically says that when one owner passes away, the remaining assets are transferred to the surviving owner. This right of survivorship is not automatic. The co-owners would need to request that it be put in place.
Beneficiary Designation
Beneficiary designations are typically used in life insurance, IRAs, and 401Ks. You would name a person as the beneficiary on the account. When you pass away, the beneficiary would just need to send in a death certificate to the company, and the proceeds would be paid directly to the beneficiary, thus avoiding the probate process.
However, it is important to remember that assets with beneficiary designations are not governed by the will. So, for example, if you want all of your assets (including those with beneficiary designations) split between numerous people, then you would need to name numerous beneficiaries on those assets and not rely on the will.
Create a Trust
If assets are owned by a trust, and the trust says which beneficiary will receive which of the trust’s assets upon your death, then these assets will not pass through probate. There are many options when it comes to setting up trusts. It is recommended that you speak with an experienced estate attorney about your needs and goals to learn more about the options that are available to you.
If you are interested in learning more about how you can protect your estate and assets, please join Miller Law for a FREE Estate Planning & Asset Protection Workshop on August 12, 2021 at 10am at the Oxford Civic Center. Space is limited, so please register now!