Avoiding Probate
Probate is the court process of collecting a decedent’s assets, paying the expenses and bills due and then distributing assets to the decedent’s heirs (when there is no will) or devisees (persons named under a will). The probate process is not difficult, but it can add $5,000 or so to the cost of distributing assets upon death. The use of a trust, pay on death designations or beneficiary designations can be used to avoid probate.
If you want to leave assets to a person under 18, then a trust is necessary. A minor cannot receive more than $10,000 without a conservator being appointed by the court. A conservatorship is a lot more complicated and costly than a probate. A conservatorship ends when the minor is 18, while a trust can allow you to choose a person to oversee the minor’s assets until the child is 21, 25, 30 or older. Remember, while your children or siblings may all be over 18, if they die before you, then their children could get their share of your assets. Thus, if grandchildren, nieces or nephews are younger than 18, a trust is necessary to avoid probate and conservatorships.
Take a look at the following articles which can be helpful to you in deciding how to avoid probate:
When is Living with a Revocable Trust Good?
New Trust Updates Need for the New Arizona Trust Code
Avoiding Probate With a Beneficiary Deed
Have you Overlooked Your Designated Beneficiaries?