What Are Some Ways to Help Loved Ones Avoid a Long Probate Process?

People create estate plans so that the wealth they’ve accumulated over a lifetime will benefit their loved ones. An enforceable last will and testament is a cornerstone of a comprehensive estate planning strategy. Assets bequeathed in a will typically must be distributed through the probate process, which might run for many months, or even years, before the intended beneficiaries can enjoy what’s been left to them. 

Fortunately, there are numerous ways that you can pass assets on outside of the probate system. By doing so, your family can maintain a higher level of privacy, and avoid the time and expense associated with court proceedings. Some of the specific options that enable people to bypass probate include the following:

• Joint ownership with right of survival — Married couples in Massachusetts often acquire title to real estate through tenancy by the entirety. This is a form of joint ownership with the right of survival, meaning that when one spouse dies, the other automatically becomes full owner of the property. If the home is the surviving owner’s primary residence, it is also protected against creditor claims. Some other assets can be owned jointly as well.

• Trusts — Many people opt to distribute most of their assets through a trust, removing that property from the estate. A popular option is a revocable living trust that can be modified or dissolved at any time during the trust creator’s lifetime. You can shift your assets into this type of trust and retain access to them, then pass what remains upon your death to a beneficiary you have named. There are also irrevocable trusts that can offer other types of advantages, such as tax minimization and Medicaid eligibility. 

• Transfer-on-death designations — Various types of financial accounts, including IRAs and 401(k) accounts give owners the opportunity to name someone in a “transfer-on-death” or “payable-on-death” designation. Should you elect this option, probate will not be required to transfer the asset.

• Life insurance policies — By taking out a life insurance policy, you can provide prompt funds for funeral costs, debts or other expenses. These benefits go directly to recipients. 

A well-designed estate plan does not just shift property efficiently, but makes the process as easy as possible for the decedent’s loved ones. Speaking with a qualified attorney can help you create a program that fits your circumstances and goals. 

Chapdelaine, Ryan & Associates handles a full range of estate planning matters for Massachusetts clients. To schedule an appointment, please call 617-870-6728 or contact us online. Our office is in Winthrop.