Probate is a court-supervised process that authenticates a will, settles debts and distributes assets. While it serves a legal purpose, probate often comes with drawbacks, including court fees, delays that can span months or years, and the loss of privacy, as proceedings become a matter of public record. These factors make avoiding probate an appealing goal for many families.
Unfortunately, estate planning mistakes can result in your assets being subject to probate. However, with proper guidance, you can avoid these and other estate planning errors.
Many financial accounts, such as life insurance policies, retirement accounts and certain bank accounts, allow you to name beneficiaries. If left blank or outdated, these accounts may default to your estate, triggering probate. Regularly reviewing and updating beneficiary forms ensures that assets pass directly to the intended recipients without the need for court involvement.
Improper asset titling is another common misstep. For example, if you own property jointly with another person but the ownership type doesn’t include a right of survivorship, your share may still be subject to probate. Similarly, assets held solely in your name without a designated beneficiary are likely to be subject to the process.
A properly funded revocable living trust can be a powerful tool to bypass probate. However, many people create a trust but fail to transfer assets into it, leaving those assets vulnerable to probate proceedings. Funding the trust entirely and keeping it up to date are essential steps for making it effective.
It’s easy to overlook small assets, such as a forgotten savings bond, an old vehicle, or even a digital account. However, if these are solely in your name, they may still require probate. A comprehensive inventory of all assets, regularly reviewed, helps avoid surprises.
An experienced estate planning lawyer can identify gaps in your estate plan, help title assets correctly and ensure that all beneficiary designations align with your wishes. They can also advise on state-specific probate thresholds and strategies for keeping your estate out of court.
Thoughtful planning now can prevent costly and stressful legal entanglements later. Take the time to review your estate documents and asset ownership structure to protect your family’s future.
Legacy One Law Firm, APLC is an estate planning and probate administration law firm in Los Angeles, California, serving families throughout the State. Schedule a quick and easy consultation with our estate planning attorney, Sedric E. Collins, Esq., or call 323-900-5450.
