Testators, or people drafting estate planning documents, must make many important decisions. For some people, keeping specific resources out of probate court is important. They want to protect them from creditor claims or Medicaid estate recovery efforts. They worry about estate taxes and want to diminish the overall value of the probated estate.
There are multiple ways for people to keep specific resources out of probate court, each of which can prove beneficial in different situations.
A change of ownership is likely necessary
The property that belongs directly to the decedent becomes their estate. Adjusting ownership is part of keeping resources out of probate court.
Some people take on co-owners for critical assets while they are still alive. They might execute a deed to allow their live-in romantic partner to become their joint tenant with rights of survivorship. When they pass, their interest in the property transfers to the other tenant without needing to pass through probate court first.
For those who want to keep financial resources out of probate court, adding a co-owner to the account could be an option. Those who do not want to take on co-owners while they are still alive to maintain their control or avoid misconduct by other people could also file transfer-on-death paperwork with their financial institutions.
People with a variety of assets might consider moving those assets into a trust. There may be other solutions available as well, depending on the type of property a testator owns and who they want to inherit those resources.
Discussing personal holdings and priorities with a skilled legal team can help people create effective estate plans. Those who wish to bypass or simplify probate proceedings need to plan carefully to control the descent of their property.