We are a Veteran Owned Business, providing 20% discounts for Veterans, First Responders, Elementary and High School teachers. We remain open during the shutdown period, so please contact us to set up a phone or Zoom meeting. Taking care of you and your family, It's What We Do!
From Our “Ask a Question” Mailbag: “Please give me Examples of Avoiding Probate.”
Examples of Avoiding Probate
Examples of Avoiding Probate:
Avoiding Probate with a Revocable Living Trust.
Mr. Philadelphia had his Estate Planning Lawyer draft a Revocable Living Trust. Mr. Philadelphia served as the sole trustee during his life and moved all his accounts and his house into the trust. At his death, his son, Philly, became the trustee. Philly did not need to file Mr. Philadelphia’s Will and thus, avoided probate. Follow the link to learn more about Revocable Living Trusts.
Avoiding Probate with a SLAT, Spousal Limited Access Trust.
Mrs. and Mr. Philadelphia set up a SLAT for one another as part of their overall, estate plan. Mrs. Philadelhia named her husband as the beneficiary of her 401k, owned the house with him as Tenants by the Entireties, and named his SLAT as the beneficiary of all her bank accounts. At her death, the 401k passed to Mr. Philadelphia, he elected to take her 1/2 of the house into his name by filing a deed removing her name, and all her bank accounts poured into his SLAT. There was no need to register Mrs. Philadelphia’s Will, avoiding Probate. Follow this link for more information about SLAT.
Avoiding Probate with a Special Needs Trust.
Mrs. Philadelphia provided care for her youngest son, Philly, a Special Needs Person. Philly was eligible for and used Needs-Based Government Benefits. Recognizing that she needed to provide for Philly after her death, but not wanting to disqualify him from his Needs-Based Government Benefits, she had her Estate Planning Lawyer draft an Irrevocable Special Needs Trust. Mrs. Philadelphia funded this trust with some assets during her lifetime and named the trust as the beneficiary of all her bank and investment accounts. At her death, she only owned the accounts that poured into the Special Needs Trust. The Trustee collected these accounts, leaving no need to file Mrs. Philadelphia’s Will. This careful preparation avoided Probate. Follow this link to learn more about Special Needs Trusts.
Avoiding Probate Using an ILIT.
Mr. Doylestown owns everything jointly with Mrs. Doylestown but wants his life insurance proceeds to be held in trust for her at his death. He could do this by forming a testamentary trust in his Will, but he wishes to avoid filing his will with the Bucks County Register of Wills. Mr. Doylestown has his Estate Planning Lawyer draft an Irrevocable Life Insurance Trust during his lifetime. He transfers his life insurance policy into the trust. At his death, the trustee holds the life insurance proceeds for Mrs. Doylestown’s benefit. These steps avoid Probate. Follow this link to learn more about ILIT.
I hope these Examples of avoiding probate were useful. We are always happy to brainstorm with you about your own, unique situation.
Let our Estate Planning lawyers help walk you through what can be a confusing process. To begin with, call to speak to one of our experienced estate planning lawyers. By all means, our lawyers are ready to answer your questions. In fact, feel free to contact our office for a free consultation. Ultimately our goal is to make the process as painless as possible!
Wills, Trusts, Probate, and Estate Litigation, It’s All We Do!
Peter Klenk is the founding member of Klenk Law, a seven attorney boutique estate planning law firm. We serve clients in Pennsylvania, New Jersey, New York, Minnesota and Florida. Peter Klenk received his Masters in Taxation LL.M. from NYU Law School and his J.D. from the University of Minnesota Law School. He served his country in the Navy JAGC during Desert Storm. Easy to talk to, feel free to call Peter for an appointment. We will make the process as easy as possible!
What Our clients are saying
Always professional and very responsive. Everyone on the staff that I have worked with. I look forward to continuing our relationship.
Klenk Law is an exceptional practice. Their fine lawyers and staff team up to produce excellent results for their clients. They excel at explaining the often cryptic laws and policies that govern estate planning right down to the complexities of the various "trust" frameworks. Peter himself manages each client together with his great team, and he has a rare quality to be both a walking encyclopedia of planning minutia and also one of the most likable lawyers I have ever had the pleasure of dealing with. He is truly generous in intellect and in his personal approach to getting the "big picture" for complex family structures. I trust him implicitly to help me make the right choices for the future. In short, Klenk Law is a gem of a firm.
I was referred to Peter after my divorce to put documents together to protect my assets. He suggested a number of documents that would help protect my children and their future. Also, he put together wills, power of attorney and living wills. I initially spoke with him on the phone, he took 30-40 minutes to understand my situation and explain the benefits of having such documents. After a week or two, I met with him in his office and signed the documents. Everything else was remote phone calls and emails. He re-explained these documents and what whom to share. I am in good hands.
Tremendous firm with bright, kind and tenacious people. Great representation for our family.
Like another reviewer, I contacted Peter through his website using the free consultation link, for a question regarding PA inheritance taxes. The question was quite technical and difficult to explain, and the answer was nowhere to be found on the web. Peter grasped precisely what I was asking, and provided a clear, helpful response (with a touch of humor) the very next day.