Bentonville Probate Lawyers – How Can You Avoid Probate? [video]

How Can You Avoid Probate?

Hi. I’m Gary the founder of DeWitt Law. You can find us on the web at DeWitt dot law.

I’m going to tell you 6 ways to avoid probate and one way people often think avoids probate, but doesn’t.

Here are 6 ways to avoid probate.

One. Create a revocable living trust. Perhaps the most flexible and comprehensive way to avoid probate. You get to set the rules and maintain control over the money and other property. You get to decide who gets what, when they get it, how they get it, and how much they get.

Two. Joint tenancy with right of survivorship. This method has hidden dangers including taxes, seizure, and ownership. The other problem is this like kicking the can down the road. Sooner or later, the property will end up in probate.

Three. Transfer on Death deeds and titles. These pass property without probate and without the issues of joint tenancy. They also avoid other issues with deeds. Most of the time these avoid issues with capital gains taxes.

Four. Payable on Death accounts designations. You name who you want to get the contents of bank accounts without probate. Your family just has to present a death certificate to the bank.

Five. Beneficiary designations. Basically, the same as payable on death, only for life insurance, annuities, and retirement plans. Your family will usually have to request a beneficiary kit from the company. They’ll fill it and return it with a death certificate. Then the company will issues a check.

Six. Lifetime gifts. Be careful as you may cause other problems like capital gains taxes. If you create ownership with more than one person on the property, then you open up all of them to the problems of any one of them. If one of the owners gets in an accident, then all them may have to pay.

There is one thing that a lot of people think avoids probate, but it doesn’t. That’s a Last Will and Testament. A Will alone DOES NOT prevent probate. A Will requires probate in order to be effectual.