Giving Things Away Before You Die
One way to avoid a lengthy probate process is to simplify your estate by getting rid of a lot of your property. A good way to do this is to set up a living inheritance: This decision allows you to begin transferring the assets of your estate during your lifetime, also known as gifting. You can gift money, property, investments, vehicles, and much more.
Once you pass, these assets would not be considered part of your estate anymore, as your selected heir would already have possession of the assets. If you’ve simplified your estate enough, your estate executor won’t have to go through probate. Gifting your property can also help reduce the amount of taxes and fees due. Because a living inheritance is considered a gift, any assets bestowed upon a beneficiary aren’t considered income. That means they’re income-tax-free. With a traditional inheritance, a chunk of it may be eaten by taxes owed by a deceased person’s estate before a beneficiary even gets a penny.