Going through the probate process can be a time-consuming and expensive undertaking, one that keeps heirs and beneficiaries from their inheritances for a longer time than anyone wants. However, there are plenty of legal ways to avoid the process altogether.
The key to avoiding probate is fairly simple: use a comprehensive estate plan. The law has made it easy for most people to avoid the probate process, with many legal tools and techniques that are available to make asset transfer simple and pain-free.
No two estates are exactly alike, so choosing the right tools for your estate plan should be made by you and your lawyer. However, there are a few key legal devices available to help that you should be aware of:
A REVOCABLE LIVING TRUST. A Revocable Living Trust is the cornerstone for many estate plans. By storing your assets in a Revocable Living Trust, you maintain control over your property while you’re still alive, and after you die, your assets can pass directly to your beneficiaries without going through the hassle of probate. An irrevocable trust offers less flexibility to you, but it may grant tax benefits to your estate.
A COMMUNITY PROPERTY SURVIVORSHIP AGREEMENT. If you’re married and want your spouse to receive all of your property should you die first, a CPSA may be the right option. This document converts all of your property into community property, allowing your spouse to receive your assets directly without going through probate. Note that there are certain advantages and disadvantages to a CPSA that are worth your careful consideration, so talk it over with your spouse first, as well as with your estate planning attorney.
A TRANSFER ON DEATH DEED. A TODD is a great tool to make the transfer of real estate less complicated, and it’s relatively new to the state of Washington. This type of deed allows you to name a beneficiary who will receive the deeded property when you die. There is no need for the probate process with a TODD, as the property transfers directly. However, the TODD does have some strict requirements that have to be met for it to be legally binding.
A WILL. A Will is also a powerful part of your estate planning arsenal. Even if you rely on Revocable Living Trusts and other legal devices, your Will can serve as a sort of catch-all safety net, in case some assets and property aren’t named in your other estate planning documents.
There are also certain assets that don’t need to go through probate at all such as designated beneficiary accounts like life insurance policies and some retirement plans. These assets already have a named beneficiary, and so they transfer automatically upon the death of the owner.
Avoiding probate is often in the best interests of heirs and beneficiaries. Good planning now means that when you die, your family will be able to receive the maximum portion of your assets available under the law, without waiting months or even years for probate to complete. However, every situation is unique, so you should consult with an experienced lawyer to be sure you’re making the best choice for your family’s future.
If you have any questions about your estate, would like to review your current estate plan, or are ready to create a new one to protect your family’s future, we are available to help. We have been serving Washington clients since 1996 and Idaho clients since 2007, and we are here to guide you through the estate planning process from start to finish. To arrange a meeting, please call us at 253.858.5434. We are available to meet in person, by phone, or via video conference.