(This blog was originally published in 2019 and updated recently.)

For many people, a principal goal in estate planning is avoiding Probate Court. There are various strategies that can be used to do so. One such strategy is a trust. However, there are other ways to avoid probate without using a trust, and here are three of them:

• Jointly owned assets with right of survivorship
• Transfer on death assets
• Payable on death assets

The first way to avoid probate to transfer your assets at your death is to hold assets jointly with rights of survivorship.  This type of ownership is generally used with married couples but can also be used between other individuals.

When assets are owned jointly with rights of survivorship, the surviving owner takes full ownership of the property with a basic document upon the death of the other owner.  This type of ownership can be used with real estate, vehicles, bank accounts and other “titled” property. In this type of ownership, all named owners would have current ownership of the assets.

Transfer on death assets are those registered with a transfer on death designation.  Assets such as real estate, vehicles or securities can be registered this way.  To do so, you need to make the transfer on death designation on the deed, title or registration for the security.  When you do so, you need to name the beneficiary you want to have these assets at your death.

A transfer on death beneficiary has no current ownership in the assets and will have no interest in them until your death. Upon your death, a basic document can be completed to transfer ownership to your beneficiary.

Payable on death designations are similar to transfer on death designations but are used with cash assets such as bank accounts, annuities, certificates of deposit, brokerage accounts, retirement accounts and life insurance policies.  You can name your beneficiaries to receive your assets upon your death.

These named payable on death beneficiaries have no access to your accounts until you die.  Upon your death, a basic process can be completed to transfer ownership to your beneficiary.

There are multiple reasons and goals in estate planning and a lawyer can help you determine which goals and strategies are best for you and your family.

_______

Shawna L. L’Italien, a lawyer in the Salem office of Harrington, Hoppe & Mitchell, focuses on business transactions, estate planning, probate, elder law and real estate law. She can be reached at (330) 337-6586 or at slitalien@hhmlaw.com.