AVOIDING PROBATE
Even though a probate proceeding is an effective and often efficient way to transfer assets on death with a judge overseeing the process, there may be clients who prefer to avoid a probate proceeding after their death. We can help call us at 785-273-4330.
REVOCABLE LIVING TRUST
Clients may establish a revocable trust to own certain of their assets and/or execute beneficiary designations and/or transfer on death instructions, so that no assets will remain titled in their name after death. Therefore, no probate proceeding will be required to re-title assets after their death. Instead, the client relies upon the trustee of the revocable trust and the companies holding assets controlled by beneficiary designations to dispose of the assets pursuant to the instructions in the trust and/or the beneficiary designations and/or transfer documents.
BENEFICIARY DESIGNATIONS
Many assets owned or controlled by a decedent don?t need to be re-titled at death because they are controlled by a contract signed with a company and are not controlled by the Will or the probate Judge. For example, if life insurance proceeds are to be paid directly to your designated beneficiary, that will happen on death without a probate proceeding by contacting the insurance company and providing proof of death. Likewise, most retirement accounts and annuities are set up to be controlled by beneficiary designation.
POD DESIGNATIONS
Kansas statues also authorize bank accounts, car titles and transfer on trust deeds to be controlled by ?Payable on Death?, or ?POD? designations. These designations on bank accounts instruct the bank, savings and loan association or investment company to pay any amounts remaining in accounts to particular beneficiaries upon your death.
JOINT TENANCY WITH RIGHTS OF SURVIVORSHIP
Finally, property may be owned as ?joint tenants with right of survivorship? (sometimes referred to as ?joint tenancy.? In such a case, both people own the entire property and upon the death on one joint tenant, the surviving joint tenant retains property). Thus, property held in joint tenancy is deemed to be the property of the surviving joint tenant without any involvement of the Probate Judge and independent of any provisions in a Will.
While these methods avoid probate, they sometimes are problematic as there is no guarantee that the designated beneficiary will survive and that alternate beneficiaries will be of sufficient maturity when the transfer happens. A thorough discussion with our office of these options is recommended as it may be preferable to use revocable trusts or testamentary trusts to provide for beneficiaries until they are mature.
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