Ambrose Bierce once observed, “Death is not the end. There remains the litigation over the estate.”
Dark as his comment was, it is true. Ideally, when someone dies, estate attorneys process the paperwork and material concerns associated with the estate flawlessly. This allows the family to grieve and remember their loved one in peace. In fact, the whole business of estate planning – or at least a significant piece of it – is concerned with ease. Can assets and legacies transfer to the next generation in a harmonious, stress-free, fair process? Here’s a hint: probate is not the easy, inexpensive solution.
To that end, one primary goal of many people is to avoid the complications and costs involved with probate.
Attorneys use many “tools of the trade” to keep your assets out of probate:
- Establishing joint ownership on bank accounts and real estate titles
- Designating beneficiaries for life insurance policies and certain accounts
- Setting up a revocable living trust (which is quite often the best, most comprehensive option)
What is a trust?
Often touted as an alternative to a will, a trust is a legal term which relates to the management of your assets by a trustee on behalf of the people you name as beneficiaries. A living trust is established while you are still alive, as opposed to being created after your death. You can be the trustee for your own living trust unless you become unable to manage your financial affairs or pass away, at which point the responsibility for managing the trust passes to someone you designate as a successor trustee.
How a trust helps you avoid probate
The purpose of probate is to transfer property ownership for all assets listed in your name when you passed away. A trust can bypass this process because assets are transferred to the trust while you are still alive. Therefore, when you die nothing more needs to be transferred by the probate court (since everything is in your trust).
Furthermore, a trust can cover virtually any type of asset, from real estate to vehicles to stock to bank accounts. When a trust is structured correctly, with the help of an experienced estate planning attorney, your entire estate can escape probate court entirely. This process limits court costs while maintaining the privacy of your financial records. It also enables your beneficiaries to enjoy the benefits of the trust without disruption or delay.
Establishing a trust can be a bit complicated. Also, the process can cost more upfront than a will. However, if you’re willing to invest a little on the front end, a trust could be your best option for avoiding probate.
Exceptions to the Rule
The key to effective planning to minimize the likelihood of a drawn out, contentious, expensive process is to work with highly qualified, trusted people. Find an estate attorney who genuinely cares about you and your family and who knows how to shape the right strategy for you and your family. Call today to learn more about your next steps to get the peace of mind you deserve.
About Skvarna Law
When you’re ready to draft estate documents or run into anything that could potentially impact your estate, give our attorneys a call to set an appointment. Skvarna Law Firm operates offices in Glendora and Upland, California and provides legal services for individuals living in San Bernardino, Los Angeles, Orange and Riverside Counties. This includes the cities of Upland, Ontario, Rancho Cucamonga, Fontana, Colton, Rialto, Chino, Chino Hills, Glendora, Claremont, Montclair, Pomona, La Verne, San Dimas, Azusa, Covina, West Covina, Diamond Bar, Walnut, La Puente, Corona, Norco & Mira Loma. Visit SkvarnaLaw.com to learn more.
