If you are creating your estate plan, you may be wondering how to avoid probate for your loved ones. Probate can be a time-consuming and costly process, especially if you have a relatively large estate that needs to be distributed at the time of your death.
At Natural State Law, PLLC, our experienced probate attorneys can help guide you through the estate planning process, helping you find the right avenue when avoiding probate. Keep reading to find out how to avoid probate court and why you should want to avoid probate.
How Can You Avoid Probate in Arkansas?
There are many reasons why you may want to avoid going through probate. Many people want to reduce the costs associated with probate, which will eat into the assets that they wish to distribute to their loved ones. You may also want to keep your estate out of probate so that there aren’t any delays and the distribution of your assets is more private.
Here are the best ways to avoid probate in Arkansas so that your loved ones don’t have to go through a lengthy probate process.
Living Trusts
Living trusts are one of the most utilized estate planning options taken advantage of since they have many benefits. One of the main benefits of a living trust is that it can help you avoid probate for just about any asset you own and have included in your estate plan.
When you create a living trust, you are creating a trust document that names someone as a successor trustee who will take over at the time of your death. You then need to transfer ownership of your assets to the current trustee of the trust, who can be you. When you have this document in place, the property will be controlled by the terms of the living trust, and your successor trustee will be able to disperse your assets to the desired beneficiaries instead of going through probate court.
For those who are intimidated by estate planning, creating a living trust is quite simple and is a good solution for many situations. However, you should still seek the assistance of an estate planning attorney so they can ensure you set up the living trust correctly.
Joint Ownership
Another option you have, if you want to know how you can avoid going through probate without a trust, is through joint ownership. When you own property jointly with another person, this will give them the right of survivorship upon the time of your death. This means that the property or assets will go to the surviving person instead of going through probate.
POD and TOD Designations
Other options that can help you avoid probate in Arkansas include payable-on-death designations (POD) and transfer-on-death designations (TOD). A POD designation can be used for bank accounts or certificates of deposit, allowing you to still control these financial assets until the time of your death. You will need to name a POD beneficiary who will claim the money when you pass away without having to go through probate court proceedings.
The same process works similarly for a TOD designation, which allows you to register stocks and bonds on a transfer-on-death form with a named beneficiary who will inherit the account at the time of your death. Keep in mind that TOD designations don’t just apply to securities since they can also be used for real estate and vehicles if you fill out the correct transfer-on-death form.
What Does Probate Look Like For Small Estates?
Most people want to know what probate is and how to avoid it since it has a bad reputation. However, probate isn’t always as time-consuming or expensive as it may seem, especially if you have a small estate. If your estate is Less than $100,000.00, probate can often be accomplished in a few simple steps, such as:
- Identifying the estate executor.
- Following what is outlined in the will.
- Filing for a Collection of Small Estate
Probate without a will is a little more complicated as assets will have to be distributed according to Arkansas‘s intestacy laws.
Estate Planning Tips
By following a few estate planning tips, you can simplify this complicated process so that it doesn’t feel so overwhelming. Here are some helpful ways to do this, no matter the size of your estate:
- Hire an attorney: Whether you have a small or large estate, you need to hire an estate planning attorney to help you manage your estate plan.
- Update your plan: Depending on your situation, you need to update your estate plan yearly or every few years as your beneficiaries and assets change.
- Stay organized: To avoid complicating things for your loved ones, you need to keep your estate plan organized and in one location that they can access after your death.
- Consider long-term care: Depending on your health, you need to include long-term care in your estate plan as well as somebody who can advocate for you.
Hire A Probate Attorney At Natural State Law, PLLC
If you want to know how you can avoid probate, there are several different routes you can take. Having a full understanding of how probate works can help you choose the right option that aligns with your last wishes.
At Natural State Law, PLLC, our probate attorneys are dedicated to providing our estate planning clients with the legal guidance they need, especially if they want to know how to avoid probate after death. Contact us today at 501-916-2878 for a consultation.