You may have heard about the horrors of probate, but in truth, probate isn’t necessarily all that bad, especially in recent years. States continue to revise their probate laws, making them more consumer friendly particularly for small estates. However, some major drawbacks to probate do exist. This includes the costs and time it can take to process complex, larger estates.
If you feel the size and complexity of your estate warrants exploring alternatives to probate, you may want to consider one or more of the following:
- Transfer your assets to a revocable living trust. A trust is like a basket that holds your assets. You can act as the trustee and can amend the trust at any time. When you die, your successor trustee distributes the trust assets to the trust beneficiaries, according to the trust agreement.
- Own property as joint tenancy with rights of survivorship. Assets owned as joint tenancy with rights of survivorship pass automatically to the
surviving joint owner(s). - Be sure to designate beneficiaries to your retirement accounts so they can pass outside of probate. Also, ask your financial advisor about transfer on death provisions for your nonqualified brokerage accounts containing stocks, bonds or mutual funds.
- Make lifetime gifts to your beneficiaries while you are living. If considering this option, you should discuss your gifting intentions with your tax advisor. Carefully planned gifting can also free those assets from gift and estate taxes.
Carefully considering how best to pass on your estate will be much appreciated by your family and loved ones. If you need assistance exploring options for passing on your estate, call and talk with a professional at TFCU Financial Advisors today.
TFCU Financial Advisors
6501 Tinker Diagonal, MWC
(405) 737-0006
TFCUFinancialAdvisors.org
Securities are offered through RAYMOND JAMES FINANCIAL SERVICES, INC., Member FINRA/SIPC, and are not insured by NCUA or insured by any other government agency. Funds are NOT GUARANTEED nor are they deposits or obligations of the credit union or any affiliated entity of the credit union, and are subject to risk, including the possible loss of principal. Tinker Federal Credit Union, Tinker Financial Services, LLC and TFCU Financial Advisors* are not registered broker/dealers and are independent of Raymond James Financial Services, Inc. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc., a non-affiliated third party provider to Tinker Financial Services, LLC and Tinker Federal Credit Union. All investments and information are intended for U.S. residents only. *TFCU Financial Advisors is a registered trademark and ‘dba’ of Tinker Financial Services, LLC. Raymond James financial advisors do not render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.