Probate is the legal process of presenting a will to the court. Once the will is submitted, the estate’s assets and liabilities are collected, all debts are paid, and the remaining assets are distributed to the beneficiaries. If there is no will, the court administers the estate.
Certain assets, such as 401Ks and life insurance policies, do not go through probate. Instead, they are distributed to the beneficiaries at death. These assets are not included in the probated estate and are, therefore, not used to calculate estate taxes. If an estate only has non-probate assets, a person does not need to file for probate.
Due to the complexities involved, it is crucial to consult a knowledgeable probate attorney to understand how to avoid probate in Melville.
Probate is the process that validates a will, identifies the property and its value, pays debts and taxes, and distributes the remaining assets as outlined in the will. The process begins when a petition for probate is filed and the original will is presented to the court. The following steps outline the probate process:
The executor or administrator then distributes any remaining assets, files necessary tax returns, and submits closing documents to the court.
Probate can take months, even years, to complete. If heirs are easily located and the will is uncontested, the process may take as little as three months, especially if debts are resolved promptly, and no appraisals are needed. However, complex estates, contested wills, or difficulty locating heirs may delay probate proceedings. For individuals in Melville seeking guidance on how to avoid probate, a lawyer could recommend commonly used strategies to streamline asset transfers.
Increasing the number of non-probate assets may reduce the likelihood of having an estate go through probate. Jointly held property and banking or brokerage accounts can transfer to the surviving spouse without going through probate. Understanding strategies on how to avoid probate may help individuals expedite the transfer of assets to beneficiaries in Melville.
Most investment and banking accounts offer payable-on-death (POD) designations, allowing assets to be transferred to the named beneficiary upon the account holder’s death. Although some accounts may use the transfer-on-death (TOD) designation instead, the process works similarly, bypassing probate.
Placing assets in a trust before death avoids probate. A trustee is responsible for managing the trust during the asset owner’s lifetime. Upon death, the trustee or successor trustee distributes the assets according to the trust’s instructions. The grantors of the trust are typically the asset owners, with responsibility passing to the successor trustee at death. A living trust allows grantors to manage their estate while protecting their wealth for their heirs.
During a consultation, an attorney could inform individuals of the best strategies to avoid probate in their specific case.
Probate can be a lengthy process that may deplete an estate’s assets, especially if the will is contested, the property requires appraisal, or businesses need valuation. Heirs may have to wait years before receiving their inheritance. Consult the lawyers at Tully Law Group, PC today to learn how to avoid probate in Melville.
