People are often confused between probate and non-probate assets, a Probate Lawyer near me explains that a non-probate asset is an asset that will not go through a probate process after death. Still, instead, it will directly pass on to the heirs. Assets are classified as non-probate, usually before death.
Probate is a lengthy and costly process that could drag in for many years; therefore, it is always advisable to have non-probate assets which the beneficiaries can access within a short period after death with a death certificate.
The family members of the decedent may not have enough funds to deal with day-to-day expenses as the accounts of the decedent may be locked during the probate process, therefore not proceeding to probate court is a better option for the family.
Non-probate may appear to be an excellent option to avoid the costly probate process. However, it would help if you were careful. There may be specific individuals like beneficiaries you dislike or creditors who could gain access to your assets without you intending they get it.
An example would be ownership of a joint bank with your son, you have two children, and you want both of them to inherit your property. Still, your son inherits the entire account after your death, and he will not be legally obligated to divide the money in the account with his brother.
Therefore, assets need to be classified as non-probate only after obtaining a full understanding of who will inherit them.
A Probate Lawyer Near Me Lists Various Non-Probate Assets
There are certain assets which are listed below that can skip the probate process, if the assets listed below are divided before death, it saves the family members a lot of time and money in going through the probate process, and allows them to have access to funds to help with the funeral process.
Probate Lawyer Near Me For Accounts:
Certain accounts, like bank accounts and health-saving accounts, are non-probate. They can be transferred directly to the beneficiary since the account holder had already named a nominee before death. If the nominee dies before the primary account holder, the asset will go through to probate.
Probate Lawyer Near Me For Joint Ownership:
Assets co-owned go to the survivor upon the death of one of the owners, the assets do not undergo probate. The surviving gets complete control of the assets and do whatever they please with them, therefore it is essential to nominate someone trustworthy as a co-owner.
Another way for assets to avoid probate is to set up a trust and add all your assets to it; namely, a living trust will help avoid probate. You need to keep in mind that trust needs to be funded and valid. If not then the assets will end up going through probate. You can consult a Probate Lawyer near me to help with the trust setup.
Assets like life insurance and IRA’s which have a beneficiary’s name attached to it will not go through probate. They are owned through contract right and are payable to the appointed nominee only. But if the appointed nominee dies before the policyholder then the asset will go through probate.
Probate Lawyer Near Me For Pension Plans:
Certain jobs pay the employee even after they have stopped working, this is called pension which is added to a pension account, the account holder can nominate a beneficiary to avail all the money in that account and give total control of the account to them.
Probate Lawyer Near Me For Wages due:
Certain jobs allow an employee in active service to nominate a beneficiary to receive an unpaid wage, these assets do not go to probate as the nominee is decided predecease, but if the nominee dies before the job holder then the asset will go to probate court.
You can add a beneficiary before death while purchasing a vehicle; this will help ensure only on death the custody of the vehicle goes to the named beneficiary.
Giving away partial property or sometimes even the entire property can be smart to avoid probate as gifts are not considered in the probate process. It is advisable to contact a Probate Lawyer near me to help divide the assets and classify them as gifts.
Contact A Probate Lawyer Near Me To Help Classify Non-Probate Assets
As mentioned before, the probate process can be very lengthy and daunting, and it may cause the family members who are already in a state of mourning to feel helpless, to help with the process and simplify things contact a Probate Lawyer near me they are well versed with the entire process. They can help make the steps involved very simple.