How to Avoid Probate in California

Probate is the legal process that regulates the transfer of assets to heirs after a person passes away. Probate is a time-consuming and costly court procedure. Fortunately, it can easily be avoided.

The Recommended Approach

 One of the most effective ways of avoiding probate is by executing a living trust. A living trust allows the owner to place his/her property in the trust and thereby avoid Probate.

 Common Mistakes that people make:

 People want to avoid Probate and often make mistakes that may make matters worse:

1. People place heirs on Title as Joint Tenancy Ownership:

Probate is usually not necessary if an asset is owned by two or more people as joint tenants. When a joint tenant dies, the other joint tenant takes 100 percent ownership of the asset regardless of the provisions of the will or trust of the deceased joint tenant. However, there are consequences to joint tenancy. If the person who is placed on title as joint tenant is sued then the home could be subject to a lien or the owners could lose the home altogether. This could happen due to a car accident if there is insufficient insurance or failure to pay on a debt etc. In addition, people who are on title as joint tenants may have problems making other large purchases, as in another home. Lastly, if the person who is paying the mortgage is not able to pay, then of course, the other joint tenant(s) is now responsible for the mortgage payment. For all of these reasons, it is a much better to have a living trust prepared by an attorney and thereby insure that your heirs will receive your property without going into Probate and without risking your investment.

2. People fail to place or update beneficiaries on Retirement Funds, Investment Funds and Bank Accounts:

 If beneficiaries are not added or changed when there is a death, then the amount in the retirement fund may be subject to probate or would contribute to what may be a probate.  Please keep beneficiaries updated and have at least 3 people listed so that if one passes away the money would go to the other.

Remember that a living Trust is primarily for real estate that is worth more than $100,000 in California. This is the document that is needed in order to avoid Probate.  The California Probate Code provides that estates of $100,000 or less do not need to be probated. Other investments as in retirement funds, bank accounts and investment funds should have beneficiaries listed so that at the time of death those beneficiaries would receive the funds. If no beneficiaries are listed, or if the listed beneficiary had passed away, these accounts would then be subject to Probate. Many people forget to place beneficiaries on these accounts or may forget to update the beneficiaries. If the spouse passes away, there should be another beneficiary listed so that the proceeds do not need to be probated. The best way to avoid Probate with funds and accounts is to make sure that beneficiaries are listed and that they are updated as needed.

Whatever your situation, going through probate is a difficult process. Attorney assistance is a vital resource during an already difficult time. Legal Action Workshop offers free consultations for Probate. Contact us today!

Legal Action Workshop's Probabte Attorneys offer free probate consultations in Los Angeles, Ca. Contact us today.