Simple Asset Transfers Outside Of Probate

Before we take a look at a couple of  simple probate avoidance tools, let’s examine the reasons why people avoid probate in the first place. For one thing, probate can be quite time-consuming. Depending on the complexity of the estate and whether or not the will is being challenged it can take anywhere from 6-9 months to even multiple years in complicated cases. In addition to the time involved, probate can be expensive, consuming up to 5% of your estate, in addition to extraordinary costs, again depending on the complexity of the matter and the size and scope of your assets.
So if you want to save time and money you may want to arrange for the transfer of assets outside of probate. One way to do this is through the creation of pay on death accounts. You simply open the account at a bank or financial institution of your choosing and name a beneficiary. Should you pass away, your beneficiary would assume ownership of the funds in the account, and this transfer would take place outside of probate. It’s as simple as that.
In some states, including Nevada, you can execute a deed conveying your real proeprty to a beneficiary upon your death. Even though the deed is recorded while your are alive the conveyance does not occur until after your death.
Another way to transfer assets to your loved ones outside of probate is to give tax-free gifts. You can give up to $13,000 to an unlimited number of recipients each year free of the gift tax, in essence giving loved ones a part of their inheritance while you are still alive and before probate would be a factor. Other tax free gifts can be made.
And finally, purchasing life insurance is also a very simple but effective and efficient way to provide inheritances to your family members outside of  the process of probate.
These ideas are something to keep in mind as you are contemplating your legacy. But in the end, the best way to implement a comprehensive probate avoidance strategy is with the assistance of an experienced estate planning attorney who will recommend the ideal combination of estate planning tools given the unique nature of your situation.

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Gerald M. Dorn, Estate Planning Attorney

Gerald Dorn is a shareholder and has been a partner at Anderson, Dorn & Rader, Ltd. Since 1998. Mr. Dorn has extensive experience serving wealthy families and business owners in the development of estate, tax and asset protection planning strategies. He made the decision to focus his practice in the area of estate planning after witnessing the personal grief and financial loss suffered by several of his clients as a result of poor planning. These experiences motivated him to dedicate his professional life to assisting his clients to preserve their life’s work for their heirs and to create a lasting legacy for those they love. Mr. Dorn is able to accomplish his mission through the use of a vast number of estate planning tools, both basic and advanced, for all of his clients at Anderson, Dorn & Rader, Ltd.

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