One of the most common goals for individuals and couples going through the estate planning process is avoiding probate. This is understandable; probate is a complicated process that can seem cumbersome at times. It is also fairly public for better or worse. Often people want their money to go to their loved ones as quickly and efficiently as possible, and probate usually is not quick and efficient. As a result, a few methods of transferring property have risen that are alternatives to the probate process. These are often referred to as “non-probate transfers.” Generally, there are five non-probate transfers:
- Joint ownership in property
- Life Insurance
- Beneficiary / pay on death designations
- Trusts
- Property Agreements
If a piece of property does not have a non-probate transfer associated with it, then it will need to go through the probate process after the owner dies.
It is not unusual for a person to have most of her property distributed by using these non-probate transfers. For example, many married couples own the majority of their property jointly and so when one of the spouses dies, the jointly held property would not be exposed to probate.
The challenge with using these non-probate transfers is that they are often set up without need of consultation with a lawyer. This could result in contradictions between what you want to happen and how your money is actually distributed. It’s important to take time to review these non-probate transfers and your last will and testament with an experienced estate planning attorney who can help make sure that all of these strategies fit in one consistent plan for you and your family.