August 09, 2022
Estate Planning Secrets: How To Avoid Probate
Probate is often thought of as a lengthy, tiring procedure that has to take place with no exceptions to process the last testament of a deceased person. However, you will be surprised to know that there are several tools you could use to avoid the entire probate process while distributing your estate without paying estate taxes and attorney/ court fees. If you are beginning your estate planning, you may want to learn the secret to avoiding probate.
Here are the estate planning secrets on how to avoid probate.
#1- Creating a Living Trust: Revocable living trust is an excellent way to ensure your heirs get your estate directly without facing the probate court. They are extremely flexible and can be changed by the owner at any time. Moreover, you can include any asset in a living trust, including bank accounts, real estate, personal property, vehicles, collections, and much more.
#2- Set Up Payable-on-Death Accounts: A payable-on-death account is similar to a transfer-on-death account, where your beneficiary can access your funds without waiting for the probate to end. You can use the funds in the account and change the beneficiary name while you are alive.
#3- Jointly-Owned Properties: You can quickly transfer real estate to your beneficiary and avoid probate through jointly-owing a property. You can either have joint ownership or a joint tenancy. The two methods are similar albeit with some differences, but they both transfer the real estate to the living partner.
#4- Signing a Transfer-on-Death Deed: Another method of transferring your estate is by signing a transfer-on-death deed or registration, also called a beneficiary deed. It only activates upon your demise.
#5- Gifting: Another way to avoid probate and significant estate taxes is by gifting the property to your heir. Gifting means that property will be removed from your possession and hence will not go through probate. This procedure is also helpful in reducing the total probate costs and estate taxes, as the higher the value of an asset, the longer the probate and higher the estate taxes.
About Castle Wealth Group
Contact Castle Wealth Group for all your investment planning needs today. We build a perfect strategy for your retirement, including income planning, investment planning, tax planning, health care planning, and legacy planning. Visit our website, call us at 844.885.4200, or email us for expert financial advice.