Which Assets Do Not Have To Go Through Probate?

The websites of estate planning lawyers are full of cautionary tales about how much money a deceased person’s estate can lose because of tax obligations and creditor claims. The solutions that lawyers, and especially for-profit financial planners, often propose is to establish a trust, a separate legal entity that owns your property so that it does not officially belong to you and therefore does not become part of your estate after you die. Trusts are just one way of keeping your property out of probate. There is more to trusts than the stereotypical view; they are not just for wealthy people, and some people who own property in a trust can even qualify for Medicaid, as can some beneficiaries of trusts. Despite this, the other types of non-probate assets require less effort than establishing a trust; perhaps you already own some of them. To find out more about why and how to keep assets out of probate, contact a Tampa estate planning lawyer.

Jointly Owned Assets With Rights of Survivorship

Any property of which you are the sole owner becomes part of your estate, unless it is part of a trust or other non-probate asset. Certain types of jointly owned assets are exempt from probate, though. If you are the partial owner of an asset, then your share of ownership goes through probate before your heirs inherit it; this can cause considerable hassle and expense both for your heirs and for the co-owners of the asset.

If you jointly own the asset with family members, and the joint asset has rights of survivorship, then your share of ownership passes to your heirs as indicated on the title to the property without going through property. Real estate properties, bank accounts, and brokerage accounts are the only types of assets eligible for rights of survivorship.

A Marital Home Owned as Tenancy by Entirety

A married couple can own a house as tenancy by entirety. This means that the husband is 100 percent owner, and the wife is also 100 percent owner. When one spouse dies, the other spouse immediately becomes the sole owner of the real estate property, without going through probate.

The Payout From a Life Insurance Policy

When you take out a life insurance policy, the person you designate as a beneficiary receives a payout as soon as he or she notifies the insurance company of your death. Life insurance payouts are not probate assets, so your heirs do not have to wait until your estate settles unless you list your estate as the beneficiary, which is a terrible idea. The death benefits of hybrid life insurance policies, which also cover long-term care expenses, are also non-probate assets.

Contact David Toback About Simplifying Probate With Non-Probate Assets

A Central Florida estate planning lawyer can help you set up non-probate assets that will pass to your heirs quickly, so they will not have to wait for your estate to settle.  Contact David Toback in Tampa, Florida to set up a consultation.

Source:

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