One of the most important goals of estate planning is protecting your loved ones and your assets. Unfortunately, when someone passes away without the right legal tools in place, their estate often ends up in probate. Probate is a court-supervised process that validates a will, settles debts, and distributes property. Probate can take months or even years and often adds unnecessary stress for grieving families.
Working with a trusted estate planning attorney can help you build a plan that keeps your estate out of probate, saves your family time and money, and preserves your privacy. Here’s how thoughtful estate planning can help you avoid probate and protect what matters most.
What Is Probate and Why Do So Many People Want to Avoid It?
Probate is the legal process of administering a person’s estate after they die. During probate, a court reviews the will, ensures debts and taxes are paid, and oversees the distribution of remaining assets to heirs.
While probate serves a purpose, it often comes with several disadvantages:
- Time delays: Probate can last several months or even years before assets are distributed.
- Costs: Court fees, executor fees, and attorney costs can reduce the estate’s value.
- Loss of privacy: Probate records are public, meaning anyone can see details about the estate and its beneficiaries.
For these reasons, many people prefer to design their estate plan to avoid probate altogether.
How Estate Planning Helps You Avoid Probate
Avoiding probate requires more than just writing a will. A knowledgeable estate planning attorney can help you use specific tools and strategies to ensure your assets transfer directly to your loved ones without court intervention.
A Local Approach: Estate Planning in Des Moines
Whether you live in Des Moines or the surrounding Iowa communities, working with a local estate planning attorney gives you the advantage of personalized guidance that fits Iowa’s probate laws. Iowa’s probate process can vary depending on the size of your estate, so having a trusted Des Moines law firm can make a real difference in how smoothly your assets are transferred to loved ones.
1. Creating a Revocable Living Trust
A revocable living trust is one of the most effective ways to bypass probate. You transfer ownership of your assets into the trust during your lifetime while still maintaining full control. When you pass away, your successor trustee distributes the assets according to your instructions without probate involvement.
Assets held in a properly funded revocable trust are not part of the probate estate, which saves time, money, and privacy for your beneficiaries.
2. Using Beneficiary Designations
Many accounts, such as life insurance policies, retirement accounts, and bank accounts, allow you to name beneficiaries directly. These are known as Payable on Death (POD) or Transfer on Death (TOD) designations.
When properly set up, these accounts transfer directly to the named beneficiaries without going through probate. Be sure to review your designations regularly, especially after significant life changes, such as marriage, divorce, or the birth of a child.
3. Joint Ownership and Titling Assets Correctly
Owning property jointly with rights of survivorship can help assets transfer automatically to the surviving owner without probate. Common forms include:
- Tenants by the entirety: Typically used by married couples for real estate ownership.
- Joint tenancy with right of survivorship: Allows property to pass directly to the co-owner.
However, not all forms of joint ownership avoid probate. For example, tenancy in common does not transfer ownership automatically and may still require probate. Joint ownership can also expose assets to the debts or legal issues of the other owner.
4. Fully Funding Your Trust
A trust only avoids probate if it’s properly funded. This means retitling your assets like real estate, bank accounts, and investments, into the name of the trust. Many people create a trust but often overlook this crucial step, leaving their assets vulnerable to probate.
Your attorney can help ensure that all property is transferred correctly, so your trust functions as intended.
The Benefits of Avoiding Probate
Avoiding probate can bring peace of mind to you and your loved ones. Here’s how:
- Saves time and money: Assets transfer more quickly and without court fees.
- Maintains privacy: Probate is a public process, but trusts and beneficiary designations are private.
- Provides control: You decide how and when assets are distributed.
- Prepares for incapacity: With a revocable trust, a successor trustee can manage your affairs if you become unable to do so.
Key Takeaways
- Probate can be slow, costly, and public but it’s avoidable with proper planning.
- Tools like revocable trusts, joint ownership, and updated beneficiary designations help assets transfer directly to loved ones.
- A Des Moines estate planning attorney can review your estate, ensure proper titling, and create a customized plan to help your family avoid probate.
- Regularly review and update your estate plan to reflect life changes and new assets.
Work With An Iowa Estate Planning Attorney Today
If you want to protect your assets and make things easier for your loved ones, Pearson Bollman Law is here to help. Our compassionate team can guide you through every step of the estate planning process to help you avoid probate and safeguard your family’s future. Book a call today.
References: Iowa Judicial Branch.“Probate Process Overview.” Iowa Courts and Internal Revenue Service (IRS). “Estate and Gift Taxes.” and U.S. Department of Justice. “Estate Planning: A Guide for Seniors.” and The American College of Trust and Estate Counsel (ACTEC). “Understanding Revocable Trusts and How They Avoid Probate.”