Estate planning has been helpful for many people. One does not need to have multiple estates or assets to start an estate plan. You can easily map your assets and estate to an estate plan irrespective of the number. A New Jersey estate planning lawyer can help you draw an effective estate plan.
The prime reason behind several estate plans is to help the applicant or the holder avoid probate. The probate court proceeding will not be a preferable option in most cases. The complex decision-making and evaluation process of probate can take a lot of time and resources. Here are some fundamental reasons you should use an estate plan to avoid probate.
The most effective way to avoid probate is by creating a living trust. Trusts could be used to secure and map assets to different beneficiaries, which could help avoid the probate procedure. Properties held in a trust would not be a part of your estate. Generally, you would be required to enlist ways to distribute property among beneficiaries. When you draft a trust, a trustee would be appointed to distribute the estate per the terms of the trust agreement. In a nutshell, one can prepare a trust in their estate plan to ensure probate gets avoided.
- Joint ownership
You might have heard and even held property jointly. Many people choose their spouse or someone else to own a property together. Joint ownership can be implemented to bypass probate.
If either owner of the property faces death, the property or the estate will be automatically transferred to the other joint owner. Such factors can eliminate probate. You must include the other owner’s name in the property title for the estate plan to work.
- Transfer-upon death accounts
One can use transfer or payable-upon-death accounts. When an applicant’s primary estate consists of financial accounts, transfer-upon-death accounts can be influential. These accounts work by appointing one or more beneficiaries as the funds held in the financial account recipient. The banks or financial institutions will transfer the funds of a financial account to the listed beneficiaries upon the death of the account’s owner. In some states, applicants can list vehicles and real estate property in the accounts.
As a result, you can use any factor mentioned above to avoid probate. Trusts, wills, or joint ownership can be used to enlist your loved ones as beneficiaries. Once you add beneficiaries and all the assets or properties to the estate plan, you should be ensured of the elimination of the probate. You can also contact an estate planning lawyer in New Jersey to help you avoid probate in different ways.