Probate is the legal process of administering a deceased person’s estate. It can include the validation of the will, paying debts, and distributing assets to beneficiaries.
While probate can be time-consuming and costly, several strategies can help you avoid or minimize it. These can ensure a smoother transfer of assets to your loved ones.
Joint ownership
Assets held in joint tenancy with the right of survivorship automatically pass to the surviving owner(s) upon one owner’s death. This applies to real estate, bank accounts, and other properties.
Beneficiary designations
Many financial assets allow you to name a beneficiary. Life insurance policies, retirement accounts (like IRAs and 401(k)s), and payable-on-death (POD) bank accounts are transferable to named beneficiaries.
Transfer-on-Death (TOD) designations
Ohio probate law permits transfer-on-death (TOD) designations for real estate and securities (stocks, bonds, mutual funds). By designating a TOD beneficiary, you can ensure these assets transfer directly to the named individual upon your death.
Living trusts
A living trust is a powerful tool for avoiding probate. By transferring ownership of your assets into a living trust, you retain control over them during your lifetime. You can designate a trustee to manage and distribute them after your death.
Using these strategies can help ensure that your assets are passed on smoothly and quickly to your loved ones without getting caught up in the lengthy probate process. Planning ahead and consulting with an estate planning attorney can provide peace of mind and secure a hassle-free future for your beneficiaries.
