Our Weekly Tip: Avoid Costly Court Fees with Non-Probate Assets

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Our Tip of the Week: Many people believe that as long as they draft a will, their assets will be distributed exactly as they wish after they die. However, this isn’t always the case, especially when you’re dealing with probate. In probate, the court looks over a list of your assets, appraises their worth, and verifies that your will is legitimate. The court then decides how to distribute the assets. Some of your assets might go toward paying outstanding bills, while others will go toward funding your final tax payments. Once those are settled, the court distributes the remaining funds or assets to beneficiaries. This is a long and expensive process that costs anywhere from 1 to 4 percent of the total worth of your estate in court fees. Avoiding this process can help you distribute your estate according to your wishes, rather than the opinion of the court.

How-to Suggestion: Find out which of your assets qualify as non-probate. Typically, non-probate assets include:

*Joint bank accounts, or those that are labeled payable on death or transfer on death (they can’t be held in your name alone)

*Any property held in trust or held in joint tenancy

*Life insurance policies and accounts that list a beneficiary other than yourself or your estate

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*Retirement funds

Essentially, any account that is under your name alone, or items that are considered your personal property (like jewelry or cars) must go through probate. Putting items in trust and getting your beneficiaries settled early will help avoid the probate process in the future, especially if you have a small, uncomplicated estate.