How can I avoid probate or reduce probate costs?

In response to the probate system, and in order to avoid it, many methods have been developed. This means you can use alternate techniques to pass property to your heirs when you die, without
incurring the costs associated with probate. The major avoidance vehicles are: the Living Trust, joint-tenancy ownership, life insurance, irrevocable trusts and jointly owned bank accounts.

As mentioned above, probate is the process in which a court validates a will, and an executor or personal representative is appointed to administer the estate’s affairs. The executor’s duties include paying estate bills and collecting estate receivables; filing the income, estate and other tax returns; paying any taxes due; and finally distributing the remaining estate assets according to the  provisions in the will. This is a process that can take years and can be costly. Probate fees can amount to anywhere between 1 percent and 9 percent of the estate’s total assets.

 

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