Today, estate planning has become a necessity rather than a choice. Without proper estate planning, your family members have to face various challenges for distributing your assets after your demise. It is a fact that probate is a complicated and time-consuming process. As a result, your family members have to pay a significant amount of your assets in the form of taxes due to improper planning. However, there are also various ways by which you can minimize probate costs. If you want to save your loved ones’ money and time after your death, hire a Probate Attorney Near Me 11572 to make an appropriate estate plan.
What Is Transfer On Death?
A transfer on death (TOD) designation allows the automatic transfer of the asset to the beneficiaries after the person’s death without the probate process. The owner can also define the share that each beneficiary will get after his/her death. However, the heirs have no control over the asset until the owner is alive. The best thing about TOD is that it is entirely changeable. Hence, you have the right to modify the name and the beneficiaries’ share if the circumstances change later.
It is important to note that the beneficiaries must be aware of assets that they will inherit after your death. Many banks or investment accounts follow the TOD provision. In retirement accounts, the unmarried person can select anyone as the beneficiary. However, the married person has to give some or all the share to the living spouse in a retirement account.
According to the Uniform Transfer on Death Securities Registration Act, an owner can choose the beneficiaries for their bonds, brokerage accounts, or stocks. They can also mention the percentage allocations of their heirs after their death.
Make Transfer On Death Process Easier With Probate Attorney Near Me 11572
After the death of the owner, the brokerage firm demands various documents for the TOD process. It includes a death certificate, affidavit of domicile, or any other documents depending on the type of asset or account. You must keep in mind that the firm can also reject the application due to some issues. Some of them are as follows.
- The information mentioned in the application form is not correct.
- Documents are incorrect or not legal.
- The form is incomplete, and some information is missing.
Therefore, it is essential that you must get all the things done carefully. A probate attorney near me 11572 can help you to get all the paperwork done easily. After checking and verifying all the documents, the bank or other brokerage firm will re-register the assets in the name of beneficiaries.
Other Things That You Can Use To Minimize Probate Costs
There are various other ways that you can consider during estate planning to reduce probate costs or avoid probate. They are:
Transfer Property And Assets To A Trust With A Probate Attorney Near Me 11572
Living Trusts can help you to bypass the probate process. First of all, you have to build trust by signing an agreement in which you have to mention the name of trust-maker, beneficiaries, and a trustee. The trustee can be a person or a company too. After the creation of the trust, the funding process begins. In this process, you have to transfer all your assets into the trust. It can be your bank accounts, stocks, real estate, or even your insurance policies. After your death, the trustee will distribute all your assets to the beneficiaries according to the share mentioned on the agreement.
Living trusts can be of two types, namely revocable and non-revocable. Experts recommend using a revocable one as it is flexible. You can easily modify it if the circumstances change in the future. Building trust can cost some money as you have to hire any professional for its proper planning. However, it can save a lot of time, money, and energy of your heirs after your demise. It is essential to keep in mind that if you haven’t transferred an asset to the trust, it still requires probate after your death. Therefore, you must include all your newly owned wealth into the trust to reap maximum benefits.
As of 2020, the IRS allows you to gift your heirs up to $15000 per person without paying any taxes. You can use this opportunity to minimize the costs of probate by gifting your assets to your beneficiaries. However, you have to pay a tax of around 40 percent for the gifts above $15000. A probate lawyer can also tell you various other methods to save taxes. Therefore, you must not hesitate to seek help from a probate attorney near me 11572.