When someone passes away, their loved ones are often left to navigate the complex, costly and time-consuming process of probate. This is why many people seek ways to bypass probate. You may hear other people recommending revocable or living trusts to do that. However, these aren’t your only options if you want to transfer your assets directly to your beneficiaries.
Last will and below $30,000 in assets
If your estate is relatively small, you may avoid probate with just a will. Estates worth less than $30,000 in New York can often bypass the traditional probate process. This simplified procedure, known as “small estate administration,” allows for a quicker and less expensive transfer of assets to beneficiaries.
Joint ownership of assets
Owning property jointly with another person is an effective way to avoid probate. When you pass away, the surviving co-owner automatically inherits your share without going through probate. There are three types of joint ownership in New York. However, only two have rights of survivorship:
- Joint tenancy: This type of joint ownership requires careful wording in legal documents like title deeds or wills.
- Tenancy by the entirety: This type of joint ownership is only for married couples and only for real property. Additionally, if you divorce your spouse, an existing tenancy by the entirety becomes a tenancy in common.
- Tenancy in common (TIC): A popular form of joint ownership but doesn’t have rights of survivorship.
Transfer on death deeds
For real estate owners, transfer on death (TOD) deeds offer a straightforward solution to avoid probate. These deeds let you name a beneficiary who will automatically inherit the property upon death. Meanwhile, you retain full control of the property during your lifetime.
Payable on death accounts
Payable on death (POD) accounts are similar to transfer-on-death deeds. POD accounts allow you to name a beneficiary who will the account contents directly after your passing. The main difference is POD designations are for bank or financial accounts. These include:
- Savings account
- Checking account
- Certificates of deposit
Structure your estate carefully to avoid probate
Careful estate planning can help you sidestep probate and make things easier for your loved ones. Consulting an experienced estate planning attorney is a prudent step. They can provide guidance tailored to your specific situation. With the right strategy, you can ensure a smooth transition and give your beneficiaries greater peace of mind.