You are definitely on the right track. But you are only half way there!
Many people believe that because they took the time to create a Living Trust, their estate will automatically avoid probate. Unfortunately, this belief is false!
The key to probate avoidance is proper asset ownership, including the full funding of your Living Trust.
What Assets Require Probate?
- Accounts and real estate titled in your sole, individual name [without a payable on death (POD) or transfer on death (TOD) designation]
- Accounts and real estate you own as a tenant in common
- Contract assets naming your estate as beneficiary
What Assets Avoid Probate?
- Accounts and real estate owned as joint tenants with rights of survivorship
- Accounts and real estate owned as tenants by the entirety
- Life insurance
- Retirement accounts, including IRAs, 401(k)s, and annuities
- Life estate property
- Payable on death (POD) and transfer on death (TOD) accounts and, in some states, transfer on death or beneficiary deeds
If you have questions about funding your Living Trust, please contact my office.