Probate avoidance is simply defined as completing estate planning to eliminate the possibility that an estate will going into probate. Probate avoidance allows estate planning attorney tampa fl to evaluate a person’s estate to make the correct plans and avoid some negative factors such as the hassle factor.
Going through probate can be an inconvenient and time-consuming situation for heirs. This inconvenient time can compound the grieving process. Another negative is that probate is very intrusive. Florida probate is public. All assets are listed for the public to know about. What can also happen is people will know who received the person’s assets as outlined in their will.
Any disgruntled beneficiary can look up the information and mount a will challenge. A will, also called a last will and testament, outlines who receives money, property and other assets when the individual dies. A will challenge can make the smooth administration of a person’s estate into a complex and complicated one. The estate must use extra money to prove the person was in sound mind and body when making the will. Ultimately, there will be a delay in giving a person’s assets to the intended beneficiaries.
What are Probate Avoidance Strategies?
Probate avoidance strategies are a way to eliminate the possibility of a person’s estate going to probate court. The person works with an attorney to plan their estate. These strategies include analyzing family situations, estate planning goals and financial situations. It goes beyond just making a will to outline who gets what property.
Types of Probate Avoidance Strategies
There are many types of probate avoidance strategies. These strategies include establishing an Irrevocable Trust or Revocable Living Trust. Another strategy is to own assets with another person that has rights of survivorship. This means any asset that the person owns will automatically pass to the co-tenant without having to go through probate.
Another option is for the person to own assets as tenants in the entirety. This type of tenants ownership is an option for married couples. It’s similar to joint tenancy with the rights of survivorships. All assets pass to the co-owner when the death of the first spouse occurs. Thus, there’s no need for probate.
Many people use an IRA or a retirement plan that requires the naming of death beneficiaries. It is important to mention that any trust must be in accordance with IRS regulations. An individual can also name death beneficiaries for their assets. Any beneficiary named to receive an asset will automatically receive that asset when the person passes away. There’s no need for probate court.
Speak with an Attorney about Estate Planning
One more negative factor about probate is the cost. When a will goes through probate, the estate pays for all fees. This can drain the estate of money before the beneficiaries can receive any assets. Thus, it’s vital to talk with an attorney about the best probate avoidance strategies to employ in a person’s estate planning. No one should allow the state to distribute their assets the way it sees fit.