When you die, your assets go through a process that covers settlement and distribution in accordance with your will. This is called the probate litigation process and is managed by the courts.
But probate is time-consuming and costly. It can take up to three years. And it is public.
You can avoid probate, however. A story on nerdwallet.com lists the following steps to take:
- Draft a revocable living trust. It lets you transfer property to your family members without probate.
- Convert IRAs and personal accounts to pay-on-death. Just fill out a form choosing a beneficiary.
- Establish joint ownership. Jointly owned property automatically passes to the surviving owner.
- Give away property. You can escape estate taxes on money or property that is gifted before you die.
- Use small estate laws to your advantage. Many states have simplified their procedures for certain types of properties.
If you have questions about estate planning, feel free to contact us for a consultation at (626) 696-3145.
