When it comes to planning your estate, working with an estate lawyer can help you discover effective strategies to avoid probate. Probate can be time-consuming and expensive, so it’s worth considering ways to bypass it. If you’ve been searching for solutions for a while, you’re in the right place.
With the help of an experienced estate lawyer in Toronto, you can implement these methods to simplify the process and provide peace of mind for your loved ones. This guide will walk you through some of the best strategies available to ensure your assets are transferred smoothly to your beneficiaries without the need for probate.
What is Probate?
Probate is the courtroom procedure that takes place after someone dies to ensure the property gets passed out in accordance with the decedent’s wishes. It can be cumbersome and expensive because it may involve going to court, lawyers’ fees, and possible protracted holdups.
Many people develop estate plans with the express purpose of avoiding the headache and cost of probate. It requires court appearances, legal fees, and potential long delays. For this reason, a number of people are considering estate planning to avoid probate.
Ways to Avoid Probate
Joint Property Ownership:
- JTWROS: Upon the death of an owner, in this type of joint ownership, the property directly passes to the surviving owner. The right of survivorship avoids probate upon death.
- Tenancy by the Entirety: This is similar to joint tenancy and most of the time is available only to married couples. When one spouse dies, tenancy by the entirety also allows the surviving spouse to retain sole ownership of the property, thereby bypassing the probate process.
Establish a Living Trust
A living trust is a document in which, while you are alive, you may give your property to a trustee who manages the trust for the carrying out of your wishes. On your death, the assets get distributed to your beneficiaries without involvement or interference from the probate court.
- Difference between Revocable and Irrevocable Trusts: The revocable trust can be amended or revoked at any time during the lifetime of the settlor, while on the other hand, an irrevocable trust is generally more effective in avoiding probate
Designate POD and TOD Accounts
- Payable on Death (POD) Accounts: These are accounts in banks or even Certificates of Deposits within named beneficiaries.
- Transfer on Death Accounts: Similar to POD accounts, these accounts allow you to name a beneficiary who takes title to the asset upon your death but does not have to go through probate for that asset.
Transfer-on-Death for Securities and Vehicle Registrations
Almost all brokerage firms and vehicle registration departments will allow you to indicate a beneficiary who will take the securities or vehicle when you die, thereby bypassing probate concerning those particular assets.
Gift Assets Before You Die
The idea is that, by giving away some of your assets during your lifetime, you can reduce the overall value of your taxable estate and save your beneficiaries thousands – or even hundreds of thousands of dollars – in estate taxes. There may be gift tax consequences to consider and even potential implications for Medicaid eligibility.
Conclusion
Probate can be an extremely complicated and time-consuming process. With these estate planning strategies, you are sure to have peace of mind knowing that your assets will be disturbed the way you want. Also, you can be sure that your loved ones don’t have to be under the burden of significant expenses that might come with probate. It is highly advisable that you seek the services of an estate planning attorney in order to establish a customized plan that meets all of your needs and objectives.