When Grandpa Joe died last year, his children assumed they could immediately take possession of his property – the family home and the fishing cabin down by the lake. They were dismayed to learn they had to wait until Grandpa Joe’s estate went through probate. Without some advance planning, there was no way to go about transferring property without probate.
Transferring property after the owner’s death often happens through probate.
When someone dies, their property passes to their heirs. If the deceased person left an estate plan, the whole process is typically easier than when there’s no Will. However, the personal representative of the estate cannot pass ownership of the property to the heirs until probate is completed. This can take months and, occasionally, years. It is simply not the best way to transfer property to your heirs. Fortunately, you have options that help you avoid or minimize your heirs’ probate nightmare.
There are ways to pass property without probate.
Estate planning is where you can make this happen, especially when your estate plans are coordinated with your financial plans. Some of the ways you can transfer your property more easily and quickly than probate include:
Property Titles. You can own property, particularly real estate, in several ways. For example, a married couple might choose to own their home through joint tenancy with right of survivorship. When one spouse dies, the other spouse takes full ownership of the home. Joint ownership can be tricky, so talk to your attorney before titling your property.
Beneficiary Designations. Financial institutions and insurers allow account holders to name beneficiaries. By completing a few forms, usually online now, you can make sure that funds remaining in your account and insurance payouts go directly to your heirs without becoming probate assets. Make sure you coordinate your beneficiary designations with your estate plan because beneficiary designations trump your Will.
Revocable Living Trust. This common trust is fairly easy to form and fund. The grantor signs a trust document prepared by an attorney, then transfers ownership of his or her property to the trust. When the grantor passes away, the assets transfer to beneficiaries based on the terms of the trust without going through probate.
Curious about estate planning and probate?
It helps to have an experienced, knowledgeable attorney at your side. For a free consultation with Attorney Bill Miller, contact us at 256-472-1900. Miller Estate and Elder Law is now located at 818 Leighton Avenue in Anniston, but we serve clients in Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas. Also check our website for free resources like Seven Steps to Handling Your Loved One’s Estate.
