Carlson & Copeland, PLLC Attorney Patrick R. Carlson

Are there any options that allow your heirs to avoid using probate to pass the majority of your estate?

 A document, filed in the land records, that allows a property owner to designate a beneficiary to receive the property when the owner dies.  Very similar to payable on death (POD) bank accounts.

Pros  Fairly easy to implement  Avoids your heirs or beneficiary’s creditors from seizing the asset during your life  Can be withdrawn and changed, if necessary  Fairly easy for beneficiary to obtain title after your death Cons  Requires filing of paperwork  Your beneficiary is public information  Not a complete solution  Provides no asset protection for beneficiaries  Not suitable if minors might inherit

 Form of ownership of property by two or more people where each person’s interest passes to the other joint owners when that person dies.  Real estate, bank accounts, cars, and other property can be owned in joint tenancy.

Pros  Fairly easy to set up  Fairly easy to gain title to property after death of a joint tenant  Common type of ownership so it’s understood by lenders and third parties Cons  Generally doesn’t avoid probate if both joint owners die in a common accident  A joint tenant’s interest can be seized by creditors to pay debts  Joint tenancy real estate is a matter of public record  Not suitable for minor beneficiaries

 A trust is a legal arrangement where a trustee holds title to property for the use and benefit of beneficiaries of the trust.  Common names are revocable trust, revocable living trust, and living trusts.

Pros  Usually revocable so it can be changed as necessary  Can provide for management of your property if you become incapacitated or disabled  Can contain estate tax and income tax planning  Usually less costly and faster than probate Cons  Requires “funding” to be effective  Trustees may serve for a long time, so:  Select a successor trustee you trust and is competent for long- term management of property  Corporate trustees are an option but can be expensive

John Client Trust John Client Property / Money to Fund the Trust Additional Property / Money Income from Property Use of Property John Client Estate (Pour- Over Will) Life Insurance Proceeds & Other “Beneficiary” Proceeds Specific Gifts Other Trusts Jane Client John Client, Jr. Marital Trust Trust for Grandchildren

This was a general discussion of some of the estate planning tools that can be used to avoid probate. It was not a discussion of any specific situation nor an endorsement of a particular strategy in any given situation. You should only take action or implement an estate planning strategy after consulting a qualified attorney who can tailor the solution to your needs and family.

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