Three ways to keep your estate out of probate





If you have spent any time thinking about estate planning, you have probably thought about probate. Probate is what happens to your estate after you die – your estate is appraised, your debts are paid, and the remaining assets are distributed to your heirs. Depending on how you set up your estate before you pass, the distribution of your assets can be a private – or very public – affair.

Aside from privacy concerns, additional reasons to avoid probate include the cost, time, and confusion entailed. There are a number of different ways that you can avoid your estate going through probate:

#1 Create a living trust

To keep just about every kind of asset in your estate out of probate, you can create a living trust. A living trust is created while you are alive and to hold your assets (everything from your home to your car to your bank accounts and more). Living trusts have a number of benefits, including:

  • Savings on federal estate taxes
  • The contents of your trust will avoid probate and remain confidential
  • Savings on executor and attorney fees
  • Immediate distribution of assets upon your death with no court involvement

You read about the differences between a revocable or irrevocable living trust in our law library.

#2 Own your property jointly

If you own property with somebody else, you can easily pass your property on to the surviving owner if you are own the property in joint tenancy or tenancy by the entirety.

Joint tenancy comes with something called the “right of survivorship”. This means that when one owner dies, the other automatically owns the entire property – regardless of what the deceased’s will says. Because of this, the property will not have to go through probate to be passed on to the surviving owner. Joint tenancy is a useful form of ownership for couples – not necessarily married – to jointly own their homes, property, vehicles, or similar items.

Tenancy by the entirety – a form of ownership only available to married couples in Pennsylvania – also comes with the right of survivorship. However, there are several key differences between joint tenancy and tenancy by the entirety. You can read more about these forms of ownership in our law library. Finally, Pennsylvania is also one of the states that allows married couples to own more than just property in tenancy by the entirety.

#3 Payable or transfer on death designations

To pass your bank accounts on to a beneficiary without going through probate, add a “payable on death” (POD) designation to your accounts (savings, CDs, etc). Your beneficiary doesn’t have any rights to the account while you are alive, but upon your death they can claim the money directly from the bank – no need to go through probate.

Stocks and bonds have a similar option called a “transfer on death” (TOD) registration form. Register your securities on this form – also known as a beneficiary form – to pass them on automatically when you die. Just like with the POD designation for bank accounts, your beneficiary will deal directly with the brokerage company to transfer the account – no need for probate.

To speak with an experienced estate planning attorney in Pennsylvania, please contact the Wexford based law office of Shields and Boris today.

Elder Law Offices of Shields and Boris

109 VIP Drive

Suite 200

Wexford, PA 15090

Toll Free: (888) 444-4093

Phone: (724) 934-5044


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Elder Law Offices of Shields and Boris
109 VIP Drive
Suite 102
Wexford, PA 15090
Phone: (724) 934-5044
Toll Free: (800) 879-0984

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