From Our “Ask a Question” Mailbag: “Please give me 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.
Follow this link to learn more about estate planning, and reading more Examples of Avoiding Probate.
In Conclusion: Examples of Avoiding Probate.
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!
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