Probate Shortcuts
The period for settling a small estate is far shorter than that for an estate that needs to go through the complete probate process. However, while $50,000 might seem like a large sum to many people, any real estate owned in sole name by the deceased is almost certain to pass this threshold.
But are there legal ways to circumvent this and bring the estate's probate value below the $50,000 threshold to qualify as a small estate? Fortunately, the answer is yes. Here are a few examples of how to accomplish this, although they do need execution prior to the death of the estate owner:
- Sign properties into joint ownership so they pass to the surviving co-owners after the estate owners' death.
- Move assets into living trusts. A living trust is an excellent way to retain the use of assets while you're alive and still have them pass automatically to a named beneficiary on death without the need for probate.
- Set up payable-on-death bank accounts. Again, these are exempt from probate, and you can still access the cash while alive and pass it onto the named beneficiary upon death.
- Move cash into pension funds. Pension funds require a named beneficiary and, as well as being tax-efficient, provide a convenient way to avoid probate.
So, if a loved one has mentioned to you that they are considering naming you as their estate executor, it could be worth having a discussion about some of these options. If their estate is particularly large and complex, it's probably worth consulting an attorney specializing in estate planning. However, if the estate is easily manageable, an attorney is not required and will only add unnecessary fees.
Need help with probate?
ClearEstate can help. We are estate professionals specializing in estate settlement in Tennessee - with decades of estate administration. We can guide you through the entire probate process, and help you get your peace of mind back. Schedule a free, no-obligation 30-minute consultation today!