Top Five Ways to Avoid Probate in Florida

Probate, the legal process of executing a will, is expensive. On average, attorneys’ fees and court costs are between 3 and 7 percent of the estate’s value. So, an estate with practically no assets other than a house and a savings account could easily cost tens of thousands of dollars to probate. These costs are quite immense, especially when compared with the relatively low cost of the probate alternatives discussed below.

Most people are generally aware of these probate alternatives. But most people don’t know how a St. Petersburg probate lawyer tailors them to meet a client’s specific needs and goals. Trusts and other documents aren’t boilerplate forms downloaded off the internet. Your trust may have the same name as someone else’s trust, but it probably won’t have the same provisions. These two advantages (lower cost and customizable documents) make probate alternatives a much better choice than the probate process, at least in most cases.

Lady Bird Deed

A life estate deed may be the simplest and most effective way to convey real property to beneficiaries while avoiding the rigors and costs of probate.

Quite simply, life estate deeds give current owners absolute power over their property during their lifetimes. They may sell it, give it away, or do anything else without consulting anyone. Then, after the current owners die, the assets automatically transfer to named beneficiaries, who then exercise similar control over the real property.

In other words, a Lady Bird deed has the same force and effect as a probate judgment, except a life estate deed accomplishes this task with the stroke of a pen.

Gifting

Transferring assets to beneficiaries as gifts is an excellent hybrid approach. These gifts decrease the value of the estate, and therefore probate costs, while retaining the official, transparent, and final aspects of a probate judge’s order.

However, the foundation of a gift is shifting sand. The tax implications of gifts to beneficiaries constantly change. So, always work with an experienced St. Petersburg probate lawyer before transferring any assets in this way.

JTROS

Married couples jointly own most assets, such as real property and, more importantly, bank accounts. If a probate court exercises jurisdiction over that asset, it could freeze that asset until all probate matters are resolved. So, when Bill dies, his wife Alicia may not have access to the checking account for several months, or perhaps even longer.

Simply adding a joint owner with right of survivorship provision to the existing ownership agreement saves this headache.

Note that JTROS does not allow owners to designate beneficiaries, at least in most cases. So, unless a couple is childless, this solution is far from ideal.

Revocable Living Trusts

Perhaps the most popular probate avoidance vehicle allows owners to freely transfer assets in and out of the corpus (property in the trust) during their lifetimes. The owner that created the trust (settlor) is also the trustee (person who manages the trust), an arrangement that further simplifies such transactions.

Furthermore, trusts allow settlors to place conditions on transfers to beneficiaries or designate that certain assets be disposed of in certain ways.

Beneficiary Designations

Certain assets, such as life insurance policies, retirement accounts, and payable-on-death bank accounts, allow you to designate beneficiaries directly. By specifying these beneficiaries, the assets are transferred to them outside of the probate process.

Rely on a Diligent Pinellas County Lawyer

Several probate alternatives are available in Florida. For a confidential consultation with an experienced elder law attorney in Bradenton, contact Drude Tomori Law. The sooner you reach out to us, the sooner we start working for you.

Source:

leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0733/Sections/0733.6171.html