We all own something. Whether it’s the family china or a large retirement account or a boat, your property will be transferred to a new owner after you pass away. Most if not all of your assets will pass to your heirs through probate, unless you make other arrangements. Yes, there are ways to avoid probate in Alabama.
What happens during probate?
Someone will present the original Will to the probate court. This can be done by an executor, an heir named in the will, or any person interested in the estate, or anyone who has custody of the Will.
If there’s no Will, then someone will petition the court to be appointed as executor or personal representative of the estate. The person who is appointed will administer the estate but will not have the guidance of a Will.
The personal representative or executor will gather and manage the probate assets, notify creditors and assess creditor claims, pay valid claims against the estate, and distribute remaining assets to the appropriate heirs.
Why would I want to avoid probate?
One reason is that the heirs may have to wait weeks or months to receive their inheritance. Some estates do not fully settle for a year or more. This is not only frustrating but can leave your family short of cash to live on.
Probate proceedings can be expensive also. You will be paying an attorney, court fees, and other expenses that may occur.
Finally, most probate records are available for public review.
What can I do to avoid probate?
Fortunately, there are ways to avoid putting your family through a probate proceeding.
- Property Titles. You can title jointly owned property so that it passes directly to the other owner(s) after you die. They may have to fill out some paperwork but generally will not have to go through probate.
- Trusts. When you transfer ownership of assets to a trust, you set up a mechanism whereby those assets may pass directly to your beneficiaries.
- Beneficiary Designations. Most financial accounts and insurance policies offer the option of naming beneficiaries. After you pass away, the money remaining in the accounts typically does not become part of the probate estate. Instead, the financial institution typically gives the money directly to the named beneficiaries.
Consult with an Alabama Estate Planning Attorney.
Should you wish to know more about how to avoid probate in Alabama, the attorneys at Miller Estate and Elder Law have the experience you need to get the estate plan you deserve. Contact Miller Estate and Elder Law at 256-251-2137 to schedule an appointment or fill out our convenient Contact Form. We help clients in Anniston, Talladega, Birmingham, Gadsden and surrounding communities. Get a free copy of our book on the Basics of Estate Planning in Alabama.