What is probate avoidance?

Probate avoidance is the process of preventing an estate from going through the probate process. Probate is the court-supervised process of settling and distributing an individual’s estate after death. Probate avoidance is a way to expedite the distribution of an individual’s assets without the court’s intervention. In Indiana, there are several ways to avoid probate. For example, property may be held in joint tenancy. This means that the property is owned jointly by two or more individuals, and when one owner dies, the surviving owner automatically assumes ownership of the deceased’s share. Other options for probate avoidance include creating a living trust, which is a legal document that names a trustee to manage the assets on behalf of the owner and which distributes those assets upon the owner’s death. Additionally, payable-on-death accounts or transfer-on-death accounts allow the individual to designate beneficiaries who will assume ownership of assets upon the owner’s death without interaction from the court. Money in these accounts is paid to the designated beneficiary without going through the probate process. Similarly, retirement accounts, such as 401ks and IRAs, may also be beneficiary-designated accounts that pass on to the designated beneficiary upon death and do not require probate. Probate avoidance provides individuals with the ability to quickly and easily distribute their assets upon their death. Probate avoidance can help individuals avoid the long processes, delays, and fees associated with the formal probate process.

Related FAQs

How is an executor compensated?
What is a revocable trust?
Who is responsible for administering an estate?
What is an irrevocable trust?
What is the difference between an estate and a trust?
What is a living will?
What is an estate inventory?
What is an executor's responsibilities?
How is a will interpreted?
Can probate be expedited?

What is probate avoidance?

Related FAQs

Related Blog Posts