You often hear that the only way to avoid probate is to put everything in a trust. While that is one way to do it that isn't the best way for a lot of people. Here are a few others.
Transfer on death deeds. This is a deed which is executed and filed during your life that will transfer you real estate (including minerals) to the person you name after you die. That person will needs to file documents within nine months of your death to make the transfer effective. This deed is revocable by you at any time prior to your death.
Beneficiary designations. This can be a beneficiary designation on an insurance policy, retirement account, or payable on death designation on bank accounts.
Transfer on Death Vehicle Notice. Title to vehicles which are paid for and not subject to lien can be transferred to a beneficiary at the time of your death by filing a form with the Oklahoma Tax Commission.
Gifting. You can give gifts to the people of your choice during your lifetime. This should be done in consultation with an attorney and/or CPA to ensure that it is done in the way that is most beneficial to you and the intended recipient. There are limits on the amount that can be gifted to any single person during a calendar year without your having to file a gift tax return. Also, when you gift property the recipient generally takes that property with your basis rather than receiving a step up in basis that they may have received if they inherit the property- you should discuss this with your CPA prior to making large gifts.
Placing property in joint tenancy with rights of survivorship. This method is preferred in very limited situations due to the liability issues associated with putting other people on the title to your property. For example: You put your child's name on the title to your house or on your bank account to try to avoid probate and make bill paying easier. Then, your child is in a car accident and found to be at fault. Your child is sued and a judgment is rendered against them. The person who sued your child now comes and takes the money from your bank account and your house to satisfy the judgment debt because your child was legally an owner of that property.
If you'd like to learn more about these options, please go to the Contact page to schedule a time to meet and discuss your options.
AS ALWAYS THIS POST AND THE INFORMATION CONTAINED HEREIN ARE FOR INFORMATIONAL PURPOSES ONLY. THIS IS NOT LEGAL ADVICE AND DOES NOT CREATE AN ATTORNEY-CLIENT RELATIONSHIP SINCE WE DO NOT HAVE ENOUGH INFORMATION REGARDING YOUR SPECIFIC CIRCUMSTANCES TO RENDER SUCH ADVICE. IF YOU NEED LEGAL ADVICE, PLEASE CONTACT A LICENSED ATTORNEY.
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