Fair Lawn Attorney Advises on Ways to Avoid Probate

North Jersey lawyer guides clients regarding estate planning alternatives  

When a loved one dies, the loved ones they leave behind must deal with various logistical challenges along with their grief. Transferring ownership of assets from the decedent to heirs through the probate process can be a difficult, time-consuming task. At The Paton Law Firm LLC in Fair Lawn, I help North Jersey clients explore estate planning options that allow them to pass on property while bypassing probate. 

What is probate and why should it be avoided?

Probate is the legal process by which courts settle decedents’ estates. It might require resolving challenges to a will or interpreting vague language in the document. Even if everything runs smoothly, intended heirs could face financial hardship while they wait for assets to be brought into the estate, debts to be paid and courts to approve the distribution of property. As a probate attorney who often works with estate administrators, I know that the legal requirements can be costly, time-consuming and stressful. A probate avoidance strategy can eliminate many of these problems, shifting assets faster and in a cost-effective, confidential manner. I can implement a variety of probate avoidance methods designed to meet accomplish your estate planning goals.

Using trusts to avoid probate

One way to avoid probate is by putting your assets in a revocable living trust. This type of trust has several advantages, such as:

• As the settlor, you decide the structure of the trust and which of your assets are included in it.
• You may name yourself as trustee, allowing you to control the trust assets during your lifetime, including distributing them to yourself.
• You can revoke or modify the trust at any time
• You name a successor trustee to distribute the assets after your death
• You name the beneficiaries will receive the remaining trust assets once you pass away.

A revocable living trust gives you maximum flexibility, privacy and control over your assets, both during your life and after your death. I can explain it in more detail and help you set one up.

Payable on death accounts

A payable on death (POD) account is a bank or credit union account in which you designate a particular individual, called the beneficiary, to receive the account’s funds immediately upon your death, thereby bypassing probate. PODs are simple to set up and maintain, requiring only that you fill out a form designating the beneficiary. You can terminate the designation at any time. As long as you’re alive, you and any co-owner retains complete control of the account and its assets, since the beneficiary is not entitled to access it until the current owner or owners are deceased. However, these accounts can only be used to pass on the types of assets that can be kept at a bank, such as money or certificates of deposit. If you’re interested, we can explain POD accounts in more detail and help you set one or more up.

Beneficiary designations on financial accounts and life insurance

You can also avoid probate by naming a beneficiary to receive your retirement account, such as an IRA or 401(k), or the proceeds of a life insurance policy, on your death. In addition, you can name a beneficiary to receive other assets, such as investment accounts and real estate, through a transfer on death (TOD) designation or joint ownership. However, if you choose any of these means, it’s important to keep beneficiary designations up-to-date to reflect changes in your life, such as marriage, divorce and births, so that these assets pass to the people you intend to obtain them when you are gone. 

Contact a New Jersey lawyer for a free consultation regarding probate avoidance

The Paton Law Firm LLC handles a full range of estate planning concerns for North Jersey clients, including the development of probate avoidance strategies. Please call 201-470-4801 or contact me online to schedule a free initial consultation at my Fair Lawn office.