When someone dies, many of their assets have to go through the probate process before they can be passed on to beneficiaries. Some things don’t have to go through this process though, and you can actually make sure that few of your assets, if any, need to go through probate with the proper planning. Our Washtenaw County probate attorneys can tell you more.
What Kinds of Assets Can Avoid the Probate Process?
There are a few types of assets that do not need to go through probate. Some good examples include:
Jointly owned assets: These are usually larger assets, like pieces of property and real estate. If you and your spouse jointly own something like this, it won’t have to go through probate when one of you passes away. The surviving co-owner simply becomes the sole owner.
Assets in a trust: Certain types of trusts, like a living trust, can also keep your property from going through probate. You just need to have the right type of trust set up and you have to actually remember to fund it. If you leave any assets out of your trust, they will end up going through probate.
Do Assets With a Beneficiary Need to Go Through the Probate Process?
Some types of accounts or insurance policies let you choose a beneficiary. A life insurance policy, certain types of bank accounts, and many types of retirement accounts let you do this. When you designate a beneficiary, there’s no need for an account to go through the probate process.
A complication can arise when a beneficiary passes before you do though. An account would have to go through probate if there is no living beneficiary, so keep your paperwork updated.
Should I Use a Trust to Avoid the Probate Process?
Using a trust to protect assets and avoid the probate process is often a good idea. It’s just important to make sure that you have the right kind of trust. A living trust can help you avoid probate. A testamentary trust, one created through your will, does not offer the same benefit.
What Happens to My Assets If I Don’t Have an Estate Plan?
When you don’t have a will or estate plan, the probate process decides where your assets go based on state laws. The court will pass down everything to one or a few family members, and you don’t get any control over what goes where. If you have specific plans for your assets and want to leave certain things behind for certain people, making an estate plan of your own is a necessity.
Contact Our Law Firm
When you are ready to learn more about how you can benefit from having a comprehensive estate plan, contact Collis, Griffor & Hendra. We can schedule a consultation and tell you more about your options. Every estate is different, but we’re ready to help you find a customized plan to safeguard your assets.
