| Probate is a legal process used to ensure property | | | | Automobiles, motorcycles, recreational vehicles and |
| belonging to an individual who has died is accounted | | | | watercraft can be kept out of probate by |
| for and properly distributed to beneficiaries. During | | | | designating a Transfer-on-Death beneficiary. Similar to |
| probate, assets must be inventoried and creditor | | | | the POD bank account, the designated beneficiary will |
| claims, tax liens and outstanding debts must be paid | | | | assume ownership of your vehicle in the event of |
| in full before property is released to heirs. | | | | your death. Transfer-on-death benefits are not |
| Probate laws vary from state to state and are | | | | available in all states. Therefore, you will need to |
| governed by county and state Probate Courts. | | | | inquire with your state's Department of Motor |
| Depending on the circumstances and size of the | | | | Vehicles or visit their website to determine if TOD is |
| estate, assets can be tied up in probate for six to | | | | applicable. |
| eighteen months. Many people believe if they file a | | | | A lesser known way to keep your estate out of |
| Last Will and Testament their estate will be exempt | | | | probate court is to give your belongings away while |
| from the probate process; however, this is not the | | | | you are still alive. Oftentimes, people who have been |
| case. | | | | diagnosed with terminal illness choose this option. |
| One way to ensure your estate will not be held in | | | | Individuals will sign over the title to their home or car |
| probate court is to file a revocable living trust. When | | | | and gift it to their children, spouse, siblings or friends. |
| setting up a living trust, legal title to your property is | | | | When you gift real estate, automobiles and other |
| transferred into the trust and administered by a | | | | valuables prior to your death, it reduces the size of |
| Trustee. You can designate yourself or someone else | | | | your estate. In many states, estates under $50,000 |
| as the Trustee. If you designate another individual as | | | | are not required to undergo the probate process. If |
| the Trustee, they will not have access to your | | | | the estate does have to go through probate, |
| property until you die. | | | | reducing the value can lower costs associated with |
| Using a revocable living trust allows you to specify | | | | the process. |
| beneficiaries whom you want to inherit your personal | | | | It's important to note that you can gift property to |
| belongings and property. Assets transferred to the | | | | others at any time in your life. However, if gifts |
| trust are not considered part of your estate and | | | | exceed more than $12,000 to any one individual |
| avoid the probate process. Upon your death, the | | | | during a calendar year you are required to file a gift |
| Trustee can easily distribute assets to designated | | | | tax return. |
| beneficiaries. | | | | Depending on the assessed value of your estate, |
| Keep bank accounts out of probate by setting them | | | | there may be other options to further protect your |
| up as Payable-on-Death. POD accounts can be setup | | | | assets and avoid probate. It's best to consult with a |
| through the bank by filling out a simple form to | | | | professional who specializes in Probate and |
| designate the person you want to inherit the money | | | | Inheritance Law. By setting up a revocable living trust |
| in your accounts. Typically, spousal joint bank | | | | and taking steps to keep your estate out of |
| accounts automatically transfer to the surviving | | | | probate, you will save your loved ones considerable |
| spouse. However, to be on the safe side, file a | | | | stress and emotional turmoil at the time of your |
| payable-on-death form with the bank to assign your | | | | death. |
| spouse as the beneficiary. | | | | |