Life is full of hassles. Some can be avoided, while others are just a necessary evil of life. Probate is often viewed as one such evil, since the entire process can be long, pricey, and more than a little confusing. For those not familiar, probate is the legal process that transfers the real estate and personal property of the deceased, otherwise known as the “probate estate”, to the deceased’s family members and other chosen individuals or “heirs”. While probate is common, is not one of life’s certainties. There are ways that an individual can set up his or her estate, so as to avoid the hassles of probate for his or her loved ones. The following are some of the most commonly used tools to avoid probate in Missouri:
Joint Ownership with the right of survivorship: Property that is held in joint ownership with the designation of “right of survivorship” will naturally avoid probate. When one owner to the joint property dies, the other owner simply becomes the sole owner. The two forms of joint ownership in Missouri are “joint tenancy” and “tenants by the entirety”. The latter being only available to married couples.
“Pay-on-death” bank accounts: In Missouri, an owner of a bank account or certificate of deposit (cd) can designate a “pay-on-death” beneficiary. This designation does not give the beneficiary any rights to the account, nor does it guarantee the beneficiary any funds. Rather, when the owner dies, the beneficiary can request a turnover of the money in the account, if any, directly from the bank without have to go through probate.
“Transfer-on-death” designations: “Transfer-on-death” (tod) designations are used in Missouri for several purposes. One of the most common uses is to transfer real estate. This “beneficiary deed” allows the owner of the property to record a deed now, but the transfer will not take place until the owner dies. Missouri also allows the owner of a vehicle to register his or her vehicle with a tod designation. Owners of bonds and other securities can also use a tod form to avoid probate.
Living trusts: In Missouri, assets held in a living trust are not subject to probate proceedings. In a living trust the owner places his or her property in a trust and designates him or herself as the trustee of the trust. The owner must also designate a “successor /trustee” who will take over the trust when the trustee/owner dies.
Please be aware, that the laws regarding probate and other estate planning issues are state specific. This means that what may work to avoid probate in one state may not in another state. Therefore, before making any decisions, it is best to sit down with an experienced probate attorney who can explain the options afforded in the state where you reside. Even if you are unable to completely avoid probate, your estate may be eligible for Missouri’s “small estate” probate procedures, which are much more simplistic.
Coping with the loss of a loved one can be difficult to endure. Having to deal with the probate process at the same time, can make a difficult situation trying. However, you may be able to save your family the hassle of probate with proper estate planning. A Kansas City Probate Attorney can review your estate with you and determine ways to avoid probate. The experienced Kansas City Probate Attorneys at the Hubbard & Kurtz, L.L.P. have helped countless clients, in both Kansas and Missouri with estate planning. Our compassionate team of attorneys are skilled at helping clients avoid the tangles of probate. Please contact our office today at (816) 472-4673 to schedule a consultation.