Estate Planning to Avoid Probate

Often, when adults begin thinking about estate planning, one of the goals is to employ estate planning tools in such a way that their heirs will not have to go through a lengthy and complex probate process. While it may be impossible to avoid probate (depending on your assets, for example), there are many tools that you can use in the estate planning process to avoid probate. It is important to discuss the specific details of your situation with a Canton estate planning lawyer who can ensure that you follow all legal requirements in Connecticut in the estate planning process. In the meantime, however, the following are some of the common ways that Connecticut residents work with estate planning attorneys to prevent their assets being probated later on.

Establish a Trust 

Establishing a trust is one of the most common estate planning tools that people use to transfer assets that will not need to go through probate. Given that there are many different types of trusts, it is important to ensure that you establish the right kind of trust for your needs. With a trust, you will give up ownership of the assets put into the trust, which will be overseen by a third party known as a trustee, and the trustee can then distribute assets to individuals or entities of your choosing.

Name Beneficiaries on Insurance Policies 

If you have any life insurance policies, you can name one or more beneficiaries to whom the policy will pay out, and the payout will not need to be probated.

Jointly Own Property 

It may be possible to name another person as a joint owner of one or more assets you have. When property is jointly owned and one of the owners dies, the other owner automatically becomes the sole owner of the property without it going through probate.

Add a Payable-On-Death or Transfer-On-Death Designations 

Connecticut law allows individuals who own bank accounts and securities to add certain designations or fill out specific forms so that the assets transfer upon death.

For bank accounts, it is possible to add a payable-on-death (or POD) designation to your accounts, including any savings accounts and certificates of deposit you have. In doing this, you name a beneficiary to receive your assets held in the bank accounts. Adding a POD does not entitle the named person to any of your bank account assets while you are leaving, but they can have any remaining assets transferred to them upon your death. For securities, you can complete a transfer-on-death (or TOD) form that allows you to name a beneficiary you can receive your securities upon your death.

Both PODs and TODs allow for transfers without the assets going through probate.

Contact a Connecticut Estate Planning Lawyer 

If you are ready to begin the estate planning process, or if you have any questions about estate planning or avoiding probate, it is important to seek legal advice. An experienced Connecticut estate planning attorney at the Law Office of Brian S. Karpe can talk with you today about your financial situation, as well as other life circumstances that you may want to address when you begin considering the estate planning tools available to you. Contact us today for more information about how we can assist you.

Sources:

jud.ct.gov/lawlib/law/probatelaw.htm

cga.ct.gov/PS97/rpt/olr/htm/97-R-1083.htm