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We all hope to pass a little something, whether it be our home or financial support, to our loved ones after we’re gone. But, after years of saving, the last thing you want is to lose a portion of your assets to costly probate administration fees. According to The Law Offices of Katzman, Logan, Halper and Bennett, LPA in Cincinnati, OH, however, there are steps you can take today to save your family time and money in the future. Here, their experienced estate planning attorneys outline five such tips.

Top 5 Ways to Avoid Probate Administration

1. Create a Living Trust

probate administrationThe most straightforward way to bypass probate administration and its associated court costs is to write a living trust. If you’re unfamiliar with the term, wills and trusts are quite similar. However, instead of appointing an executor to disburse your assets, a trust appoints a trustee who manages the assets for your beneficiaries. Because your estate is “in trust,” it does not need to pass through the legal system when you pass away.

2. Give Lifetime Gifts

You can also avoid probate by transferring a portion of your estate while you’re still alive. Depending on the size of the gift, you may be subject to gift tax, so check your state’s laws beforehand.

3. Own Joint Property

Upon death, all your jointly owned assets will automatically transfer to the surviving owner. Thus, co-owning a home with your spouse or sharing a bank account with your sibling allows your family to bypass probate administration, at least for that portion of your estate.

4. Name Beneficiaries

Wills and trusts aren’t the only places you can name beneficiaries. Many financial accounts such as IRAs, 401(k), and certificates of deposit allow you to designate one, meaning they will directly transfer the funds to the beneficiaries upon your death.   

5. Obtain a Life Estate Deed

estate planningA life estate deed allows the lifetime owner to transfer their property to a desired third party without probate upon death. However, Katzman, Logan, Halper, and Bennet warn, individuals who pursue this method should exercise extreme caution. Signing the deed means you no longer have the right to transfer, sell, or mortgage the property without a joinder. Additionally, the tenant has little to no control over the property if the third party passes away. Regardless, life estate deeds can still be an apt alternative to probate administration, in some circumstances.

While estate planning might not always be pleasant to think about, your loved ones will thank you for saving them from the headache and heartache of probate administration. Call The Law Offices of Katzman, Logan, Halper and Bennett, LPA at (513) 793-4400 to start putting these five tips into action today. For more on this esteemed firm’s practice areas, visit their website.

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