How Do I Avoid Probate?
Probate is the process by which a person’s will is validated by the court, and a decedent’s property is distributed amongst heirs. This formal process can take several months to several years. Both expensive and time-consuming, there are ways that you can avoid probate, such as allowing your assets to transfer to your loved ones without the headache.
If you are in the early stages of estate planning, our Harrisburg estates and trusts attorneys are here to address your concerns.
Probate Process in PA
Probate is the court process by which a personal representative (formerly known as an executor/executrix) is named to handle a person’s estate. During the probate process, the decedent’s will is approved by the court, and property will be distributed according to the terms of the document. Although creditors do have the opportunity to file claims with the estate, Pennsylvania law bars any claims that are made more than one year after a person’s death.
Ways to Avoid Probate in PA
Set Up a Trust
If you allocate your property to a trust, such as a living trust, you can allow assets to bypass probate. A trust holds property for the benefit of another person, known as a beneficiary. The trust is managed by a trustee, with the individual who created the trust being referred to as the grantor.
A revocable living trust allows you to specify how assets should be distributed upon death. A living trust will be revocable during your lifetime, allowing you to change the trust terms or appoint or remove trustees. When you die, the trust will become irrevocable.
Establish Joint Ownership of Property
Joint ownership of property allows those assets or real property to avoid probate. Being joint owners of a bank account is simple, as you simply need to list another holder on the account and have that individual sign off. On a real estate deed, your form of ownership will be listed as joint tenancy with rights of survivorship (JTWROS). Married couples are able to hold title as tenancy by the entirety, which has the added bonus of allowing each spouse to own 100% ownership of the property.
Designate Payable on Death Accounts
Bank accounts, certificates of deposit, and life insurance policies can be payable on death (POD) or transfer on death (TOD). This allows the funds to transfer to the beneficiaries without having to go through probate. This will allow your loved ones to access the money immediately, avoiding court fees and costs.
Consult with Our Dedicated Harrisburg Estates and Trusts Attorneys
Our Harrisburg estates and trusts attorneys know the complexities of navigating probate. We are prepared to guide your planning accordingly to streamline the process. We view estate administration as more than a legal process but rather a way for a person to leave a legacy.
Our legal team understands the impact that an inheritance or devise can have on your children’s lives, and we are humbled that you have asked us to partake in your planning. To schedule your consultation or to learn more about our services, contact us online or by phone today.