Probate can be a lengthy and costly process that many wish to avoid as it can be particularly complex, expensive, and time-consuming. Fortunately, several strategies are available to help Florida residents minimize or completely bypass probate, ensuring a smoother transition of assets to your loved ones. This blog post from our Tallahassee Estate Planning lawyer explores effective methods to bypass probate. It provides insight into estate planning techniques that can save your loved ones time, money, and stress.
Understanding Probate in Florida
Probate is the legal process through which a deceased person's assets are distributed under court supervision. This process is required to ensure debts are paid, and assets are distributed according to the deceased's will or, if no will exists, according to state laws. While necessary, probate can be slow, public, and expensive, prompting many to seek alternatives. For further discussion on how much probate can cost in Florida, click here for a blog post from our Tallahassee Estate Planning Attorney.
Five Strategies That May Help You Avoid Probate in Florida
- Establish a Revocable Living Trust: One of the most effective ways to avoid probate is by setting up and properly funding a Revocable Living Trust. When you create a trust, you transfer ownership of your assets to the trust, which you manage as the trustee until your death or incapacitation. After that, a successor trustee you have appointed takes over and distributes the assets directly to your beneficiaries according to the terms you set in the trust. Since the trust owns the assets, they bypass the probate process. For additional discussion of the benefits of a Revocable Living Trust for incapacity planning, click here.
- Designate Beneficiaries on Accounts: Many financial accounts, including life insurance policies, retirement accounts, and even some bank accounts, allow you to designate beneficiaries who will receive the assets in these accounts upon your death. These designations generally supersede what's written in a will and will typically pass directly to the beneficiary you designate, allowing direct transfer to beneficiaries and avoiding probate entirely. There are some additional downsides to this approach to estate planning that should be discussed with a qualified estate planning lawyer near you.
- Own Property Jointly: Owning property jointly, with rights of survivorship, means that upon the death of one owner, the surviving owner(s) automatically inherit the deceased's share of the property without going through probate. This is common with married couples but can apply to any two or more people owning property together.
- Use Payable-on-Death and Transfer-on-Death Accounts: Florida allows the use of payable-on-death (POD) designations for bank accounts and transfer-on-death (TOD) registrations for securities. These designations allow the assets in these accounts to pass directly to the beneficiaries you name without going through probate.
- Give Away Property During Your Lifetime: Another simple way to avoid probate is by giving away your property while you are still alive. This can reduce the size of your estate and the amount that would need to go through probate. However, be aware of potential tax implications and the need to maintain enough assets for your needs.
Obtain Expert Legal Assistance
While these strategies can help avoid probate in Florida, it's essential to implement them correctly to ensure they are utilized most effectively and do not cause any unintended consequences. Please consult with a qualified estate planning attorney near you. A wills and trusts attorney can help you understand each strategy's benefits and drawbacks and assist in setting up a comprehensive estate plan generally consisting of trusts, wills, power of attorney, designation of health care surrogate, living will, drafting deeds, and ensuring and other estate planning documents to create a comprehensive and effective estate plan.
Conclusion
Avoiding probate in Florida can save your heirs time and money while keeping your family affairs private. By planning and using the abovementioned strategies, you can ensure a smoother transition of your assets. We specialize in helping Florida residents create comprehensive estate plans that meet their needs and goals. Contact us today to learn how we can help you plan effectively and avoid the cost and headache of probate.
