For many, probate can feel like a legal maze. Whether you are an executor trying to help an estate or you are writing up your documents in the hopes of avoiding probate altogether, it takes a solid understanding of the probate process to ensure you save your family the time and money.
One advantage of using estate planning tools like revocable living trusts is that they can help you avoid the probate process after death. This benefit not only streamlines the transfer of assets but also protects privacy and provides peace of mind for your loved ones.
Federally and across states like Kansas and Missouri, there are legal strategies and estate-planning tools that can help avoid the probate process or at least simplify it.
At the end of the day, it takes a stronger understanding of the process and the partnership of an estate planning attorney to get there.
What is Probate and Why Do People Want to Avoid It?
Probate is the legal process of administering and distributing a deceased person’s estate.
This could include acts such as paying off debts, distributing assets, and validating the wishes in the will. Even with an in-depth will and established wishes, this process can be lengthy and expensive. In Kansas and Missouri, probate proceedings could last up to several months to a year, depending on circumstances.
With the length and expense in mind, many people will try to do all they can in estate planning to avoid probate or, if that is not possible, to simplify it as much as possible for the sake of their family.
When probate is avoided or simplified, it helps families retain privacy, reduce overall costs, and gain faster access to assets.
Estate planning is essential for anyone with personal belongings they want distributed in a certain way after death.
Use Revocable Living Trusts to Avoid Probate
One of the most effective ways to bypass probate is to implement a revocable living trust, also called a ‘revocable trust’ or ‘living trust’ within your estate plan. The person who creates the trust is called the ‘settlor.’ A revocable living trust is an arrangement set up through a legal document that allows someone (the trustee) to manage another person’s (the settlor’s) money or property held in the trust.
When you place assets into a revocable living trust, they will pass directly to the named beneficiary without any intervention from the courts. The advantages and benefits of a revocable living trust include avoiding probate, maintaining privacy, and providing peace of mind regarding asset management and estate transfer.
A properly drafted and funded trust will ensure that your loved ones avoid the delays and legal fees that come with probate while also granting you greater control over how and when assets are distributed.
Add Beneficiary Designations to Financial Accounts
Beneficiary designations are the legal instructions written for bank accounts, retirement accounts, or life insurance accounts. These instructions will clearly state who or what is to inherit the assets directly after your passing.
That being said, since they will inherit the asset directly after death, the asset does not go through the probate process.
These terms would be considered in two different ways. In Kansas and Missouri, transfer-on-death (TOD) and payable-on-death (POD) are the specific terms utilized for beneficiary designations. These terms ensure the assets get transferred quickly and without the need for courts.
Title Real Estate Using Transfer-on-Death Deeds
In Kansas, using Transfer-on-Death (TOD), and in Missouri using beneficiary deeds allows you to name beneficiaries to automatically inherit property assets, such as a house or land, when you pass, bypassing probate completely.
This method is cost-effective and avoids the delays and expenses of probate court proceedings that come with real estate holdings.
Joint Ownership Can Help, but Comes With Risks
Joint ownership, with the Rights of Survivorship clause intact, is another estate planning tactic that can help some assets avoid probate.
During joint ownership, two or more people will own an asset, whether that is a house or vehicle, and with rights of survivorship, the share of the individual who passes will automatically transfer to the surviving owners. No courts necessary.
However, joint ownership comes with its own set of risks, such as gifting unintended control or creating liability issues. It can be essential to draft a joint ownership agreement with an estate planning attorney to ensure all possibilities, good and bad, are outlined.
Use Small Estate Affidavits When Applicable
A small estate affidavit is a legal document that an individual uses to claim that the estate is small and qualifies for simplified handling.
When an estate is below a certain value, it may qualify for small estate administration through a simplified affidavit process, which can avoid the full probate process.
In Missouri, the small estate threshold is $40,000. In Kansas, the small estate threshold is $75,000. When properties fall below these thresholds, heirs can skip the full probate proceedings.
Work With a Probate and Estate Planning Attorney to Avoid Probate
Every estate plan is different. So, partnering with an experienced Kansas and Missouri estate planning attorney can ensure your estate is protected and your loved ones can avoid the delays and expenses that come with the probate process.
Estate planning attorneys specialize in creating customized estate plans based on individual needs. An estate planning attorney can ensure you have a comprehensive, legally binding plan that should eliminate conflict and confusion after your death. Estate planning attorneys work with clients to help manage the transfer, disbursement, and taxation of their estate.
Choosing the right estate planning attorney is crucial to avoid gaps or oversights in your estate plan. An experienced estate planning attorney can help you navigate the complexities of estate law and ensure your wishes are followed. It is important to seek the counsel of a legal professional when creating an estate plan.
An estate planning attorney can help set up trusts, draft power of attorney documents, and handle Medicaid planning. Whatever you may need legal guidance on, an estate planning attorney can help provide long-term legal strategies.
If you are looking to develop an estate plan that avoids probate or have further questions, contact the team at Janssan Estate Probate & Elder Law.